Impossible Foods Slashes Prices Again As Demand Soars
Alternatives to meat have been a popular topic and investment theme over the last few years. Virtually every quick service restaurant has rolled out some sort of option to bring these options to customers.
Despite meat alternatives being added to many quick service restaurant menus, the number of Americans who consider themselves vegetarian and who have tried plant-based meat remains low.
According to a 2018 poll by Gallup, 5% of Americans consider themselves to be vegetarian. Gallup conducted the same poll in 1999 and found that 6% of Americans considered themselves to be vegetarian.
A separate poll by Gallup found that just 41% of Americans have tried plant-based meat. Age has somewhat of an effect on the likelihood of someone trying plant-based meat, with about 50% of Americans younger than 50 trying it, while only 26% of Americans 65 and older have tried it.
Impossible Foods, which is one of the leaders in the space, announced yesterday it will slash prices for foodservice distributors in the U.S. by an average of approximately 15%, marking the second such move over the last year.
Impossible Foods is asking distributors to pass along savings to restaurants and consumers. Distributors in Canada, Singapore, Hong Kong and Macau will see varying price cuts later this month.
The second price cut comes as Impossible Foods says demand for the Impossible Burger is at an all-time high. The move is the latest by the company to achieve its mission of supplanting animal-based products.
"Our stated goal since Impossible Foods' founding has always been to drive down prices through economies of scale, reach price parity and then undercut the price of conventional ground beef from cows," Impossible Foods CEO and founder Dr. Patrick O. Brown said. "Less than a year ago, we cut foodservice prices by 15%. Today's price cut is just the latest -- not the last -- step toward making the food system sustainable. Stay tuned."
Despite the price cut, the lowest possible wholesale price for the Impossible Burger is still $6.80 per pound, Impossible Foods spokesperson Rachel Konrad said. The cost is still well above the $5.32 per pound beef patties averaged as of January 1, according to the U.S. Department of Agriculture.
The move comes at a time when many consumers are feeling the economic effects of the pandemic.
"As unemployment remains stubbornly high and the effects of COVID-19 continue to ravage the economy, it's imperative to provide affordable, delicious, and sustainable food to restaurants and the public," Impossible Foods President Dennis Woodside said.
With the number of consumers choosing alternatives to meat still very low, Impossible Foods hopes its latest price cut will help it "completely replace the use of animals as a food technology by 2035."
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