Beyond Meat Has Completely Altered Its Go-to-Market Strategy
The first six months of 2020 have visibly transformed Beyond Meat's (NASDAQ: BYND) approach to marketing its plant-based, meat substitute products. The company's second-quarter 2020 earnings report, released Tuesday after the markets closed, revealed that it's still experiencing rampant growth. Total revenue jumped by 69% against the prior-year quarter to $113.3 million. And the organization continues to spill a slight amount of red ink, generating a loss of $10.2 million over the last three months versus a loss of $9.4 million in the second quarter of 2019.
But beneath these numbers, the dynamics of Beyond Meat's business model have been radically altered by its response to the COVID-19 pandemic. In the second quarter, U.S. retail sales (mostly through grocery channels) almost tripled to $90 million, while foodservice sales in the U.S. plunged by 61% to $6.5 million.
Part of this shift happened without much intervention by management, as consumption in restaurants and other institutional foodservice outlets has plummeted since the spring, while at-home consumption has soared.
Source Fool.com
