Shares of major plant meat manufacturers plummeted! Why is the “Future Meat” once optimistic about KFC and McDonald’s facing challenges?

Beyond Meat, a leader in plant-based meat, has recently become the “prey” of the stock short army. Since the release of its third-quarter earnings report in 2021 that was not as expected, the stock price has been on a roller coaster. The closing price on January 24 this year was $62.49, compared with 2021. The high of about $180 fell by more than 50% and even fell below the listing price. The Financial Times reported that Jim Chanos, founder of well-known short-term fund firm Kynikos Associates, pointed out that the company is no longer a growth company.

Plant-based meat, which has been favored by many market research agencies with double-digit growth rates, Microsoft founder Bill Gates, and well-known movie star Leonardo DiCaprio, why invest? People lose their attractiveness?

Caterers and customers have not paid the bills, and plant-based meat is like a “marketing gimmick”
The reality is that plant-based meat still has a long way to go before it can completely or substantially replace real meat.

“Bloomberg” pointed out that the support of chain restaurants is not as strong as expected, which is the first reason. Although fast food companies such as McDonald’s and Burger King have announced their cooperation with artificial meat companies such as Beyond Meat, most of them only sell related products in a small area. Enter the formal menu.

This makes plant-based meat products more like a “marketing gimmick” for some catering companies. Taking the cooperation between Burger King and another supplier, Impossible Foods, to transform the signature product Whopper as an example, “Bloomberg” observed that after the marketing budget was cut in 2020, social media discussion directly dropped by nearly 70%. Burger King’s largest franchisee in North America Carrols Restaurant The Group said that sales of plant-based meat products fell by half after the launch. The inability to gain support from the large restaurant chains represented a considerable blow to the sales pipeline.

The Financial Times quoted the data of SPINS, a US retail data company, and found that from 2021 to October, the sales of plant-based meat in the United States had a negative growth compared with last year. Enough restaurants to offer products, or people to prefer foods they are accustomed to, have led to the decline of the plant-based meat trend.

In addition, meat consumers tend to regard plant meat as a “trend”, and may try it once or twice out of curiosity and freshness. However, the price of alternative meat is usually 30% to 40% higher, and there are also problems such as taste and taste, which are difficult to achieve. Really make these people loyal patrons. Even vegetarians, not everyone can accept plant meat, some groups regard it as a processed product, and do not recognize the nutritional and health effects.

The increase in the proportion of plant meat sales does not mean that general meat will decrease
In addition to being unable to enter the shopping carts of catering operators and consumers, there is no clear conclusion when looking at plant meat from the perspective of sustainability and improving the environment. “Vox” said that the high carbon emissions of animal husbandry have gradually attracted public attention, so it is easy to equate “increasing the proportion of plant meat” with “reducing overall carbon emissions” on the surface. However, they found that even if manufacturers promised to sell more meat alternatives, it did not mean that sales of animal meat would decline proportionally.

The situation on the consumer side is more realistic. “Vox” mentioned the research of the Breakthrough Institute, which focuses on climate and food. When the price of plant-based beef is reduced by 10% and the consumption is increased by 23%, it can only reduce the production of animal-based beef by 0.15%. After all, the sales volume accounts for Too low and it’s too difficult to shake the overall meat market.

Of course, the more uncertain the market is, the better the chance of success. The alternative meat field continues to attract many industry players. When Beyond Meat’s stock price plummeted, Impossible Foods still announced its IPO plan. The success or failure of this multi-billion dollar industry in the future is still uncertain.

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