Impossible Foods wants to change the world, or at least change the “meat” we eat.
The Silicon Valley firm’s flagship product, the Impossible Burger, is a ground beef substitute currently served in thousands of restaurants around the world – from Michelin star venues to Burger King drive-throughs. The firm is ramping up production and is being met with insatiable demand; restaurants have even reported trouble securing the product. Moreover, Impossible Foods has been the most visited company page on the SharesPost platform over the last six months.
Clearly something disruptive is happening, so we set out to compare this plant-based meat to the traditional, all-American burger. We visited locations serving Impossible Burgers near SharesPost’ HQ in downtown San Francisco using our feet-on-the-street approach to research. The result: The Impossible Burger gets faux beef right. In our informal side-by-side comparison of a real burger and an Impossible burger, we couldn’t tell the difference. Some of us even ordered extra sliders - “make it Impossible.”
Impossible Foods’ business strategy appears to be one with worldwide ramifications. The aggregate global market for animal protein (meat, poultry, and fish) is estimated to be valued at over $70 trillion – with a “T” – by 2025, according to Grand View Research. While any part of that figure could be substantial, Impossible is seeking to take the lion’s share. As it claims, Impossible wants to completely replace the millennia-old animal agricultural system.
The company’s goal also aligns with the environmental consciousness that is changing consumer behavior across the world. Impossible Burger creates 89 percent less emissions, uses 87 percent less water, and takes up 96 percent less land compared to the beef industry, according to company figures. With carbon-conscious millennials now the plurality of global consumers, Impossible may be poised to ride macro tailwinds. That said, the company has a long road ahead to sate the world’s varied palates. It has yet to release any poultry or fish substitutes and is currently facing bottlenecks in production.
To date, Impossible Foods has raised about $777 million, which includes three debt financings. Current investors include tradition venture capitalists Khosla Ventures, Gates Ventures, Viking Global, and GV, as well as celebrities including Serena Williams, Katy Perry, and Jay-Z.
The company does face real challenges. Impossible Foods is facing off with newly public Beyond Meat and food titans Kellogg, Tyson, JBS, and Nestle in the pursuit of capturing market share in this emerging vertical. Further, it’s important to remember Impossible is not the first mover in the space. Past attempts at imitation burgers have not achieved widespread acceptance among ever-shifting consumers. Still, the company appears to have products that are clearly whetting the appetite of consumers and investors.
SharesPost Research will be publishing an in-depth overview of Impossible Foods in the weeks to come– stay tuned.
James Cheap is a research analyst at SharesPost.
This report is distributed by SharesPost Financial Corporation, a member of FINRA/SIPC. SharesPost Research LLC, SharesPost Financial Corporation, and SP Investments Management, LLC, an investment adviser registered with the Securities and Exchange Commission, are wholly owned subsidiaries of SharesPost, Inc.
Recipients who are not market professionals or clients of SharesPost Financial Corporation should seek the advice of their own financial advisors before making any investment decisions. None of the information contained in this report represents an offer to buy or sell, or a solicitation of an offer to buy or sell, any security, and no buy or sell recommendation should be implied, nor shall there be any sale of these securities in any state or governmental jurisdiction in which said offer, solicitation, or sale would be unlawful under the securities laws of any such jurisdiction.
This report 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.
The analyst(s) certifies that the views expressed in this report accurately reflect the personal views of such analyst(s) about the subject matter therein, including all of the subject securities or issuers, and that no part of such analyst compensation was, is, or will be during their employ directly or indirectly related to their specific views contained in this report.
Analyst compensation is indirectly based upon the growth and success of SharesPost, Inc., including the overall performance of its subsidiaries, the individualized performance of any such analyst, and the development and progression of the overall research effort. SharesPost, Inc. earns revenue from, among other avenues, brokerage sales, and therefore the analyst may indirectly benefit from research reports that have the ultimate effect of increasing trading activity, either through SharesPost Financial Corporation and/or with SharesPost Investment Management, LLC.
This report does not contain a complete analysis of every material fact regarding any issuer, industry, transaction, or security. The opinions expressed in this report reflect the judgment of the analyst at a specific point in time and are subject to change. The information contained in this report has been obtained from sources the analysts consider to be reliable; however, there is no guarantee the any of the information is accurate.
Securities referenced in this report 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. 2019. All rights reserved.