Beyond Meat secures US$100M loan as sales slump
The company faces shrinking volumes in the U.S. and continues to adjust strategy amid weak consumer demand.
USA – Beyond Meat has received a US$100 million loan from a plant-based advocacy organization as the company tries to manage falling sales and mounting operational challenges.
The funding comes from Unprocessed Foods, a nonprofit affiliated with the Ahimsa Foundation, which promotes plant-based diets.
In return for the debt financing, Unprocessed secured the option to purchase up to 12.5% of Beyond Meat’s shares, according to a statement from the company.
The cash injection follows a weak first-quarter performance, which Beyond’s CEO Ethan Brown described as “disappointing.”
U.S. retail revenue dropped by 15.4% to US$31.4 million, while product volumes plunged 23.3% over the same period.
According to the company, part of the decline was caused by a temporary pause in distribution due to some retailers moving its products from the refrigerated section to the frozen aisle.
This shift disrupted store availability, further compounding the company’s struggles with consumer skepticism and a broader slowdown in the plant-based sector.
Industry-wide, plant-based meat sales dropped by 2.3% in 2024, based on data from Nielsen.
Brown said that although distribution is expected to normalize through the rest of 2025, the relocation of products within stores poses challenges in sustaining consumer engagement.
He noted during an investor call that “velocity” — how quickly products sell — remains a significant concern in the frozen section compared to the fresh aisle.
In addition to its distribution issues, Beyond Meat has been cutting costs in an attempt to stabilize its financial position.
In February, the company laid off around 6% of its employees and suspended its operations in China to reduce expenses.
It also explored borrowing up to US$250 million from investors, according to Bloomberg reports.
With the new US$100 million loan, the company aims to fund operations while pursuing its revised growth strategy.
Brown said the company is also working to address what he called public “misinformation” around the healthiness of its products.
He added that Beyond will continue to assess further financial options as it works to reposition plant-based meat as a nutritious source of protein.
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