March 4, 2020

Impossible Foods drops prices on its products sold to US distributors

The company announced a 15% average fall in prices sold to distributors in the United States to make their plant-based meat products more competitively priced to beef, reported Reuters.

Dennis Woodside, Impossible Foods president said the company is urging its distributor to pass along the price cuts to restaurants. On average, plant-based meats are more expensive compared to regular meat in restaurants on average.

However, Impossible Foods products sold at retail will not be affected by the cheaper prices.

There is growing demand for Impossible Burger, the company's flagship product that is sold in popular eateries in the United States such as Burger King, the Cheesecake Factory and Hard Rock Café. Impossible Food products will soon be sold in Disney theme parks, resorts and cruise liners.

Burger King announced the "Impossible Whopper" will be added to its "2 for US$6" promotion, making the meat more accessible to its customers.

Impossible Foods will be adding more alternative beef products to its portfolio, including quarter pound and third-pound burger patties.

Beyond Meat, Impossible Foods' competitor, has also added more partnerships with eateries to meet the demand of environmentally conscious consumers.

Ethan Brown, Beyond Meat CEO said the company is expected to drop its price below regular meat in the future. Beyond Meat shares ended up for a second straight season after falling 20% on February 28, 2020 due to missing quarterly profit projections.

-      Reuters