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  Title	Beyond Meat to Suspend China Operations, Cut 9% of Its Workforce As Q4 Earnings Improve
  ID	7337113
  External ID	7584461862
  Author	Anay Mridul
  Published Date	Feb. 26, 2025, 11:59 p.m.
  Summary	Beyond Meat is making cutbacks and suspending its China business after revenues jumped in Q4, with the plant-based leader taking aim at regenerative agriculture. Californian plant-based pioneer Beyon
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  URL	https://www.greenqueen.com.hk/beyond-meat-q4-2024-earnings-revenue-china-layoffs/
  Sentiment	Negative: 0.53227    Neutral: 0.03805    Positive: 0.42968
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  Content ID	4642359
  Key	5406d7d8-0e0f-4eed-9e23-2a75d8e4a828
  Content	Beyond Meat is making cutbacks and suspending its China business after revenues jumped in Q4, with the plant-based leader taking aim at regenerative agriculture. Californian plant-based pioneer Beyond Meat will lay off 9% of its global workforce, including most of its China employees and “changes to the executive leadership team”, after increasing revenues and narrowing losses in Q4 2024. The company will reduce its North American and EU headcount by 44, in addition to making 20 employees redundant in China, where it will suspend operations by mid-2025. The move is part of its strategy to reduce operating costs, and one that “is not done lightly”, according to CEO Ethan Brown. It comes after the firm posted $76.7M in revenues in Q4, a 4% hike from the corresponding period in 2023 – it was Beyond Meat's second consecutive quarter of year-on-year revenue growth, following two years of declines. It simultaneously cut losses by 71% in the final quarter of 2024, reaching $45M. For the full year of 2024, too, net losses shrunk to $160M, a 52% improvement from the year before. And while overall revenues were down by 4.9% at $326.5M, “the rate of decline slowed substantially versus the previous two years”, noted Brown. Moreover, the Beyond Burger maker recorded a gross profit of $41.7M, versus a loss of $82.7M a year prior, thanks to a major reduction in selling costs. This year, Beyond Meat predicts its revenues for Q1 to be comparable to the corresponding period last year, and expects full-year sales between $320M and $335M. The business has outlined four priorities for 2025: delivering comparable annual top-line revenues, improving gross margin to 20% (versus 13% last year), further reducing operating expenses over the next two years, and improving liquidity and optimising its capital structure to strengthen its balance sheet. “[We] remain highly confident in our ability to lead the category through what has been a challenging correction born in manufactured ambiguity, and believe unequivocally in the inevitable and central role that plant-based meat will play in our global future,” Brown told investors in an earnings call. Price hikes and international foodservice deliver wins Beyond Meat's improvement in performance was driven by growth in the US retail and international foodservice channels. The company saw an increase in net revenue per pound due to lower discounts and price hikes on certain products, but its volumes were down due to ” weak category demand” in the US and “lower sales of ground beef and chicken products” in global supermarkets. In its home country, retail sales were up by 5.7%, representing its biggest channel. Foodservice revenues decreased by 2%, meanwhile, largely due to “lower burger sales to a large QSR customer”. Internationally, revenues in the retail channel trimmed slightly by 1.7%, but climbed by 9% in foodservice, thanks to an increase in sales of Beyond Chicken to a large QSR chain. Brown was optimistic about Beyond Meat's fortunes in France, where it introduced Veggie McPlant Nuggets at over 1,500 McDonald's locations. “Moreover, in France, beginning this month, we launched Beyond Steak in retail,” he said. Other areas of international expansion came via the debut of its Smash Burger at Tesco and the rollout of its steak at Mexican-inspired chain Tortilla in the UK, alongside the introduction of the Plant Burger at Wendy's in Georgia. Misinformation won't deter Beyond Meat's health push Asked what a Beyond Meat customer looks like today, Brown said the company is “getting much more focused on the health-oriented consumer”, reflecting its renewed nutrition focus in product development and marketing . “It is extraordinarily important to me that this product furthers human health,” the CEO said. He highlighted the numerous “puts and takes” about where the plant-based category is headed – particularly with the ultra-processed foods debate , which has magnified since the appointment of Robert F Kennedy Jr as health secretary – but suggested that consumer interest in Beyond Meat remains “extremely high”. “There's also a very strong countercurrent, which is this narrative around being highly processed and full of questionable ingredients, which is a manufactured narrative,” said Brown. “It's not one that actually has science behind it or much truth to it.” He added: “But it is a very powerful incumbent industry campaign that's gotten picked up by certain punnets and what we call the carnivores on Instagram and podcasts that are misinformed. And so our consumer is increasingly […] more educated, someone who can see through that noise, and they are the ones that are carrying us back to growth.” While misinformation and misdirection “do a serious disservice” to consumers looking to make positive changes, Brown is resolute that Beyond Meat would stay its course and ultimately prevail. “I'm very confident over time that percentage will continue to increase where […] Beyond Meat makes sense,” he said. “I can have a burger and I can have 75% less saturated fat. I can have fat from avocado oil versus stuff that's going to fill my arteries and require me to have my chest opened up when I'm 60 years old. “I mean, knock yourself out if that's the outcome you want, but if you want a different outcome, come over to Beyond Meat and have a burger that tastes great and has a clean source of oil… Again, if you don't want that, don't have it. But if you're concerned about your health and want to have a great dinner, go ahead and get Beyond Steak and have it. I mean, it just makes sense.” Beyond Meat CEO slams ‘regenerative beef' The cost of plant-based meat has become increasingly important over the last couple of years, even surpassing taste or health for some consumers. In the US, meat alternatives have a 77% price premium over conventional meat, with the smallest gap seen in beef (20%). Beyond Meat itself raised prices with its new Beyond IV lineup of products last year. Brown pinpointed volume as the major factor behind the difference in costs. While the company did reach price parity for a product line “with a particular customer in a particular market”, it's focusing on providing “very clean, very simple, very healthy ingredients to the consumer”, according to Brown. “There are other products that lend themselves more to reaching [price parity] and primarily in the food service category,” he said. “So it does remain a goal, maybe it's a little more differentiated and sector-specific than it was at the onset.” Expanding on the cost question, Brown noted that animal agriculture is facing some existential threats: “If you look at the beef prices today, they're starting to rise. What's that about?” US consumer price index data shows that beef was 13% more expensive in January than it was two years ago. “In part, that's about drought,” he said. “So that's not something that a government or industry can solve.” Speaking of the government, RFK Jr has been a major proponent of regenerative farming, which can have several benefits for soil and nature. But the Beyond Meat CEO pointed to Big Beef's misuse of the term, which climate activists have outlined as a greenwashing tactic “All of this posturing around: ‘We're going to do regenerative agriculture.' Any serious scientists around regenerative beef will tell you that's just a non-starter. Sure, you can have some beef out on the pasture, but you have to have far, far less,” said Brown. “So that's not going to serve to provide a global protein solution.” Would Beyond Meat embrace cultivated fats? He also addressed a question about whether Beyond Meat would consider hybrid proteins, mixing its plant-based meat with cultivated fats . “We certainly look at everything. We're agnostic to technology. It's really about the outcome,” Brown said. “But I think the trend is actually in the opposite direction. How simple can we make these products? How much can we assure the consumer that the noise they're hearing about being processed is an incumbent industry trying to protect itself?” He continued: “We're coming out of the trough where we're starting to go up what they call the slope of enlightenment in innovation literature. And what will bring the consumer back is a fundamental understanding that this is a very simple and clean product, tastes great, and it's really good for you. And the more and more consumers understand that, the more you see the market come back.” Author Anay is Green Queen's resident news reporter. Originally from India, he worked as a vegan food writer and editor in London, and is now travelling and reporting from across Asia. He's passionate about coffee, plant-based milk, cooking, eating, veganism, food tech, writing about all that, profiling people, and the Oxford comma.
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