As a result of the increased cost of living, vegan food company Beyond Meat has experienced a nearly thirty percent decline in customer purchases in recent months according to sources.
According to the manufacturer of plant-based meat substitutes, net revenues dropped by 30.5% for the three months ending in June when compared to the same period one year earlier.
During prolonged trading in New York, the price of the company's shares dropped by roughly 12%.
It was stated the previous year that they planned to reduce its personnel by about one fifth in order to save approximately $39 million (£30.6 million).
On Monday, the business announced that it had been negatively impacted by "softer demand in the plant-based meat category, high inflation, rising interest rates, and continued concerns about the potential of a recession."
It was stated that the company was now anticipating yearly sales of between $360 million and $380 million, which was a decrease from earlier predictions that reached as high as $415 million.
According to Ethan Brown, chief executive of Beyond Meat, there has been a decrease in demand as a result of a greater focus on the health benefits associated with vegan products.
In the course of an earnings call, Mr. Brown stated that interest organizations have succeeded in generating uncertainty and dread about the ingredients and process used to make our and other plant-based meats.
Beyond Meat reported a net loss of $97.1 million for the same three-month period a year ago, while it reported a net loss of $53.5 million for the same time this year.
The corporation made the announcement in October that it would be eliminating about 200 positions in order to save an estimated $39 million over the course of the next year.
During an earnings call, Mr. Brown mentioned that this shift in perspective is not without encouragement from interest groups who have succeeded in sowing doubt and dread about the ingredients and method used to manufacture their other plant-based meats.
This shift in perception is also supported by interest groups that have successfully sown doubt and dread.
Beyond Meat's net loss for the same three-month period shrunk to $53.5 million, compared to $97.1 million for the same period a year earlier.
The corporation said in October that it would eliminate approximately 200 jobs in order to save an estimated $39 million in expenditures over the next year. Meatless Farm, a vegan food firm, ceased operations in June and laid off its employees.
Heck, a sausage producer, recently limited its vegan variety and cited a lack of demand from customers as the reason.
The cost of living problem in the UK is having a "huge impact" on people's purchasing decisions, according to the Vegan Society, while Meatless Farm said that the market for alternative meat has gotten crowded.
At the moment, one share of Beyond Meat is worth approximately $15, which is a significant discount to its initial public offering price of $25.