Impossible Foods FDA Approval Official: Will Impossible Burger take shelf space from beef?
August 8, 2019 | Blog

Impossible Foods FDA Approval Official: Will Impossible Burger take shelf space from beef?

Impossible Foods, the 8-year-old Silicon Valley start-up developing plant-based meat, made two major announcements at the end of July: a regulatory approval and a production partner. The FDA approved the company’s use of soy-based heme, a key ingredient giving the Impossible Burger its meat-like taste and color, as a color additive. Before this announcement, Impossible Foods was cornered to just selling its product to restaurants. Now, we may see their flagship product on grocery store shelves come September, according to the company. Moreover, Impossible Foods announced it had inked a manufacturing agreement with OSI, a major fast-food supplier, to bolster short-term production. Both of these developments could be a boon for the private company that has already attracted a $2 billion valuation.

“Between Impossible Foods and Beyond Meat, we share less than 1% of the U.S. market for ground beef… We’re focused on the other 99%.”

– Pat Brown, CEO and Founder of Impossible Foods, CNBC August 2019

Impossible Burger and Beyond

For comparison, rival faux meat producer Beyond Meat reported $34 million in grocery store sales in the most recent quarter. This figure represents just over 50 percent of Beyond’s top line. Beyond Meat experienced 192 percent growth in retail sales in the last quarter compared to this time last year.

Impossible Foods having their product directly available to the masses could increase brand awareness and should lead to increased sales. Impossible Foods revenue figures and projections are unavailable with this latest development– they had projected revenue growth north of 215 percent for 2019, according to The Information. Meat incumbents are surely paying attention. Burger King is set to offer the “Impossible Whopper” across the country after testing the item in select locations. Tyson has released a meat product brand called Raised and Rooted that “blends” plant-based protein with real meat– seems they are working with what they have.

SharesPost Research Publishes Impossible Foods Report

We spend a lot of time keeping up on private growth companies here at SharesPost and markets have hinted plant-based meat substitutes could be a fast growing vertical. As such, we are announcing the publication of our Impossible Foods company report. The curious reader can learn more about the company here.

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Copyright SharesPost, Inc. 2020. All rights reserved.

PLEASE READ THESE IMPORTANT LEGAL NOTICES & DISCLOSURES

This article does not constitute an offer to provide investment advice or service. Registered representatives of SharesPost Financial Corporation do not (1) advise any member on the merits or prudence of a particular investment or transaction, or (2) assist in the determination of fair value of any security or investment, or (3) provide legal, tax, or transactional advisory services.

Securities referenced in this article may be offered by SharesPost Financial Corporation, member FINRA/SIPC. SharesPost Financial Corporation and SP Investments Management are wholly owned subsidiaries of SharesPost, Inc. Certain affiliates of these entities may act as principals in such transactions.

Investing in private company securities is not suitable for all investors. An investment in private company securities is highly speculative, involving a high degree of risk, and investors should be prepared to withstand a total loss of your investment. Private company securities are also highly illiquid and there is no guarantee that a market will develop for such securities. Each investment also carries its own specific risks and investors should conduct their own, independent due diligence regarding the investment, including obtaining additional information about the company, opinions, financial projections and legal or investment advice.

Accordingly, investing in private company securities is appropriate only for those investors who can tolerate a high degree of risk and do not require a liquid investment.

SharesPost, the SharesPost logo, My SharesPost, the SharesPost Index, and SharesPost Investment Management are all registered trademarks of SharesPost, Inc. All other trademarks are the property of their respective owners.

Copyright SharesPost, Inc. 2020. All rights reserved.