Impossible Foods cuts food retailer prices by 15% on average

Impossible Foods cuts its wholesale prices, bringing it closer to price parity with the meat its products mimic.

On average, U.S. foodservice distributors will pay about 15% less for Impossible hamburger and sausage alternatives during the second price drop in a year. International distributors in Canada, Singapore, Hong Kong, and Macau can also expect to see reduced prices on Impossible products.

Manufacturers of meat substitutes like Impossible are working to lower the price of animal products as part of their broader strategy to convince consumers to choose their products instead. As of Jan. 1, the average price for beef patties was $ 5.32 a pound, according to the US Department of Agriculture’s national retail report. With the latest round of price cuts, the lowest possible wholesale price for the Impossible Burger is $ 6.80 a pound, company spokeswoman Rachel Konrad said.

The private company said it was hitting production records month-to-month, which helped it achieve greater economies of scale. Since 2019, production has increased sixfold in factories belonging to Impossible and those of its industrial partners.

Impossible asked distributors to pass the savings on to restaurateurs, who have largely struggled to stay afloat since the onset of the coronavirus pandemic.

Rival Beyond Meat also strives to reduce its prices as competition takes hold in the market. This summer, he sold frozen value packs of his meatless burger patties. Shares of Beyond, which has a market value of $ 7.93 billion, rose 67% last year.