Thanks to tremendous growth over the past months and years, Impossible Foods has now announced another price reduction of its alternative products, this time for US retailers. The company will reduce recommended prices in grocery shops and supermarkets across the USA by approximately 20%.
This is the first retail price cut since the launch of Impossible products, but it follows two other price cuts that have already taken place in the past year. Having already cut prices by 15% for foodservice providers, particularly restaurant retailers, Impossible recently cut them by a further 15%.
Some companies only cut prices when they have lower than expected sales. On the contrary, Impossible is lowering its prices amid record demand for its alternative protein products. The company’s goal is to lower prices through economies of scale, achieve price parity and then undercut the price of conventional ground beef.
Better for the budget, better for business
This current price reduction, as well as the other price reductions for restaurants, are possible because Impossible has been able to significantly increase sales of its products over the past few months. Just one year ago, the popular plant-based Impossible Burger was sold in only 150 grocery shops. It is now available in nearly 17,000 grocery shops nationwide – a more than 100-fold increase in 2020 alone.
Thanks to rising demand, production costs are falling and Impossible Foods is passing these savings on to its network of distributors and retailers, with the ultimate goal of lowering prices for consumers. This in turn accelerates faster retail growth – a virtuous circle.