Plant-based diet. Pexels Image.
This article explores Beyond Meat’s advertising spending and compares it with peers such as Kellogg and Conagra Brands which also work in the same industry and develop packaged-food products.
Beyond Meat is a company that specializes in producing plant-based meat substitutes. Founded in 2009 by Ethan Brown, the company aims to offer people the taste and nutritional benefits of meat without the negative environmental and health impacts associated with livestock production.
The company’s creative approach to developing the world’s best plant-based meat products does not come without a cost. Reportedly, it spent well over $20 million in advertising in 2022 alone.
Let’s take a look!
Investors interested in Beyond Meat’s R&D spending versus peers may find more information on this page: Beyond Meat R&D expenses versus Kellogg and Conagra.
Please use the table of contents to navigate this page.
Table Of Contents
Definitions And Overview
O2. How Does Beyond Meat Spend Its Advertising?
Advertising Results
A1. Advertising Spending By Year
Advertising Growth Rates
B1. Growth Rates Of Advertising Spending
With Respect To Revenue
C1. Advertising To Revenue Ratio
With Respect To Operating Expenses
D1. Advertising To Operating Expenses Ratio
Conclusion And Reference
S1. Conclusion
S2. References and Credits
S3. Disclosure
Definitions
To help readers understand the content better, the following terms and glossaries have been provided.
Advertising Expenses: Advertising expenses refer to the costs a company incurs to promote its products or services to the market.
These expenses can include a wide range of activities such as television and radio commercials, print advertisements, online ads, billboards, direct mail, and promotional events. The goal of incurring these expenses is to increase product awareness, attract new customers, and retain existing ones, ultimately leading to increased sales.
Advertising is a critical component of a company’s marketing strategy, and the amount spent on advertising can vary significantly from one company to another, depending on the industry, the size of the company, and its market share objectives. These expenses are typically categorized as operating expenses on the income statement.
How Does Beyond Meat Spend Its Advertising Expenses?
Beyond Meat allocates its advertising expenses toward promoting its plant-based meat substitutes to the market.
This includes a range of strategies such as digital and social media campaigns, partnerships with influencers and celebrities to enhance brand visibility, and participation in various food and trade shows to demonstrate the qualities and benefits of their products.
Additionally, Beyond Meat might invest in traditional advertising mediums like television, radio, and print ads to reach a broader audience.
These advertising efforts aim to increase awareness of their brand and products, educate consumers about the benefits of plant-based diets, and ultimately drive sales by attracting new customers and retaining existing ones.
Through these advertising efforts, Beyond Meat seeks to position itself as a leader in the plant-based food industry, highlighting the taste, nutritional benefits, and environmental advantages of its products over traditional animal-based meats.
Advertising Spending By Year
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For advertising expenses, Beyond Meat spends the least amount when compared to its peers such as Kellogg and Conagra Brands.
As shown in the chart, Beyond Meat spent just $17.2 million and $20.6 million on advertising in fiscal year 2023 and 2022, respectively, which were far fewer than the amount expensed by Kellogg and Conagra Brands.
Kellogg spent a staggering $206 million and $178 million on advertising in fiscal year 2023 and 2022, respectively.
Similarly, Conagra Brands spent an even higher amount on advertising, totaling $290 million and $245 million in fiscal year 2023 and 2022, respectively.
Growth Rates Of Advertising Spending
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Beyond Meat’s advertising growth has averaged around 27% between 2022 and 2023, while that of Kellogg has averaged -1% and Conagra Brands has averaged 7% during the same period.
Although Beyond Meat has grown its advertising the fastest beween 2022 and 2023, the figure dived 17% in fiscal year 2023, illustrating the challenges the company was facing in 2023.
Advertising To Revenue Ratio
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Although Beyond Meat’s advertising spending is far lower than its peers, it is comparable with peers when it comes to the ratio of advertising to revenue.
As shown in the chart above, Beyond Meat spent roughly 5% of its revenue on advertising in fiscal 2023, which was far higher than Conagra Brands and nearly as much as Kellogg.
Therefore, with respect to revenue, Beyond Meat’s advertising budget is nearly comparable with its much larger peers.
Advertising To Operating Expenses Ratio
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From the perspective of operating expenses, Beyond Meat’s advertising budget is low compared to its peers.
As shown in the plot above, Beyond Meat spent just 6.6% of its operating expenses on advertising in fiscal year 2023, while Kellogg Company spent over 30% of its operating expenses on advertising.
Conagra Brands spent more than 10% of its operating budget on advertising, also a much higher ratio than Beyond Meat.
Although Beyond Meat’s ratio has been relatively low compared to peers, it has increased from 4% in 2021 to 6.6% in 2023, a record figure for a company as much as Beyond Meat.
Conclusion
Beyond Meat spends the least amount on advertising expenses compared to its peers. In fiscal year 2023, Beyond Meat allocated just $17 million on advertising, while Kellogg and Conagra Brands spent well over $200 million.
References and Credits
1. All financial figures presented in this article were obtained and referenced from the respective SEC filings, quarterly and annual reports, earnings releases, investors presentations, etc., which are available in the following links:
(a) Beyond Meat’s Financials and Filings.
(b) Conagra Brands’ Financials and Filings.
(c) Kellogg Company’s Financials and Filings.
2. Pexels Images
Disclosure
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