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.
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.
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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