Beyond Meat, Inc. (NASDAQ:BYND) Q2 2023 Earnings Call Transcript

So all of those things matter when the consumer is willing to come in, right? But if there’s a kind of cloud over the sector, right? Those things matter less. And so price matters less and the improvements making taste nonetheless. So our number one goal in this area is to lift that cloud and to educate the consumer about the health benefits of the products then I think things like taste will really start to matter again. You need to give the consumer taste is the most important thing to right? But you need to give the consumer a motivation beyond that, because animal protein tastes good, too, right? So — we have to deliver on taste and slightly more, but deliver on taste and other attributes. And for the U.S. consumer, it’s taste and health.

Michael Lavery : Okay, great. Thanks for the questions.

Ethan Brown : I’ll just do a shameless plug for a new burger. You should go out and you should try in food service what is called the Beyond Meat Smashed burger or in retail sort of buying the Beyond Stack that has a new flavor formula and a new texture, which I think, again, got a review said something like early reminiscent something of that nature of animal burger. So we keep making better not there yet. But again, let’s clear on these other issues and that, that will be something that’s really pleasing for consumers. Yeah, go ahead.

Operator: Our next question will come from Rob Dickerson with Jefferies. Please go ahead.

Rob Dickerson : Great. Thanks so much. Just kind of a simple question. I mean it sounds like kind of back half U.S. retail revenues are expected to grow a little bit. I’m assuming that’s clearly volume-based kind of easier compares off of last year’s back half. But is there something unique that just kind of drives that volume because a lot of the conversation these days is what happens when you have student loan payments to kind of circle back a little bit and maybe the consumer is not so strong. And there’s not a lot of companies have a lot of conviction in the strength of the consumer. And you’re saying the consumer is still a little tight. We have a premium product at the same time, yes, revenues are going to get better. I don’t know if that’s just the kind of points of distribution or why you have that conviction?

Ethan Brown : Yeah. So it’s a good question. So it’s a couple of things. One, it’s again, the lower comps we have year-over-year. Two, it’s some increased distribution both in retail and in food service and globally. It’s continued strength of our strategic partnerships, particularly in Europe, things of that nature. So that’s really what’s driving it versus any sense that the consumer is going to automatically have a better outcome — outlook coming of that nature. It’s more of those tactical things that we know to be present.

Rob Dickerson : Okay. Okay. Fair enough. And then I guess kind of late in the queue here, but I’ll circle back to Ken’s question. There’s another question on R&D. I think it was labor, kind of R&D versus advertising and you talked about new Smash burger taste profile. I just feel like maybe not as much as an analyst, but just a consumer that when you kind of change the taste profile, like should we also be expecting kind of investment community to like see new ads about that, like you walk into the store and it’s going to show why it tastes better. Just something for a hook because I do feel like you are kind of on a rolling basis renovating the product, but maybe consumers don’t know. So that’s all. Thanks.