Impossible Foods has revealed it will cut prices for distributors in the US by 15% following increasing demand for its Impossible Burger. The significant price cut is the second in a year following previous cuts back in March 2020.
Despite two price slashes in less than twelve months, CEO Patrick Brown has promised that the latest cut is “not the last”. The company has declared its mission of turning back the clock on global warming, halting biodiversity collapse and fixing the public health crisis by making our global food system sustainable. To achieve these goals, it must undercut the price of animal meat.
Though the price cut will not at this stage affect its retail products, the California-based company will ask distributors to pass on the savings to restaurants, and ultimately consumers. Impossible Foods boasts a global portfolio of customers including Starbucks, Red Robin and Burger King. It is also lowering prices for distributors in Canada, Singapore, Hong Kong and Macau, with cuts varying depending on the region.
This latest round of cuts means the lowest distributor price would be $6.80 per pound for the Impossible Burger. However, according to the United States Department of Agriculture, this new price is still remarkably more than animal beef, which can range from $2 to $3 per pound for low fat and non-organic varieties.
Nevertheless, Impossible Foods is currently achieving production records, and has experienced a sixfold increase since 2019 at its plant in Oakland. Globally, demand for plant-based meat, such as Impossible Foods’ burgers and sausages, has risen sharply during the pandemic after animal meat producers closed plants to shut down the rapid spread of the Covid-19 outbreak.
“As unemployment remains stubbornly high and the effects of COVID-19 continue to ravage the economy, it’s imperative to provide affordable, delicious and sustainable food to restaurants and the public,” added Impossible Foods President Dennis Woodside.