Beyond Meat, a fake meat company backed by Hollywood celebrities, is fighting for its survival after losing over 80% of its value
According to a study conducted by the University of California at UC Davis, livestock is responsible for 14.5 percent of global greenhouse gases. The study also found that animal-based foods have a bigger carbon footprint than plant-based foods.
In the United States, cows and other ruminants account for just 4 percent of all greenhouse gases produced while beef cattle represent just 2 percent of direct emissions. Another study by Food and Agriculture Organizations of the United Nations also found that farming livestock is responsible for 14.5% of global greenhouse gases.
To address the dangers of climate change, companies like Impossible Foods and Beyond Meat introduced sustainable and environmentally friendly meats like alternative meat products and plant-based foods to address these risks.
But once touted as the “Tesla of the food industry” and the next-generation company to save the planet from the impending doom of climate change with its plant-based meat, Beyond Meat is now fighting for its survival as its struggles to save itself let alone the planet.
In May 2019, the vegan-meat company had a wildly successful IPO after seeing its shares more than double on the first day, as demand and appetite for its veggie grew at grocery stores and restaurants. At its peak on July 26, 2019, Beyond Meat stock was trading at $234.90. Today, the stock is trading at just $12.35, losing 81.49% value.
So, what went wrong? We first covered Beyond Meat in May 2019 after the then-food startup raised $241 on the first day of its initial public offering (IPO). Backed by Hollywood celebrities including Microsoft Corp. co-founder Bill Gates and actor Leonardo DiCaprio, Beyond Meat makes plant-based meat designed to taste like meat. The company was founded in 2009 by Ethan brown with a mission to create nutritious and sustainable protein.
The company’s goal was to make a positive impact on four growing global issues such as human health, climate change, constraints on natural resources, and animal welfare. Before going public, the company raised a total of $122 million in funding over 7 rounds. Their latest funding was raised on Oct 5, 2018, from a Series H round.
Beyond Meat went as far as hiring Kim Kardashian as the company’s ambassador and Chief Taste Consultant.
But as the economy started going south, sales started to slump and things started to go south as fast food restaurants like McDonald’s concluded the test of Beyond’s meatless patties for its McPlant. McDonald’s and Beyond announced a three-year partnership in early 2021 before the abrupt termination of the test in June. Shares of Beyond Meat immediately fell 6 percent.
That’s not all, some say the horrible taste of Beyond Meat may be attributed to the lackluster demand for the meatless burger, which is made using Beyond Meat patties. In the video below, Scott Shafer did a deep dive into Beyond Meat and concluded the company might file for bankruptcy by 2024. What do you think?
Below is a screenshot of Beyond Meat stock as of today.