Veganism has surged to prominence over the past decade, radically changing diets around the world and even traditional notions of food itself. Alongside this came companies such as Beyond Meat (US:BYND) and Oatly (US:OTLY), challengers to the existing food giants that aimed to lock in customers by showing them an alternative to animal products. Together, the pair raised almost $2bn (£1.6bn) on the back of this wave. Investors that bought in at IPO are heavily underwater though, and sales have slumped as consumers deal with tighter budgets.
Beyond Meat said last month that its net revenues fell by 30.5 per cent for the three months to the end of June, compared with a year earlier. The company said it had been affected by "softer demand in the plant-based meat category, high inflation, rising interest rates and ongoing concerns about the likelihood of a recession". The key US market saw a 40 per cent drop, and full-year net revenues are also projected to fall to $360mn-$380mn, a decrease of up to 14 per cent compared with 2022.
The company, which makes plant-based products including burgers and sausages, made its debut on the Nasdaq in 2019, with its shares ending the day up more than 160 per cent. But IPO investors are now sitting on a 60 per cent loss.