At Bloomberg’s Sustainable Business Summit in London, Peter McGuinness, CEO of Impossible Foods, shared insights on the company’s strategy for European market expansion. Speaking with Bloomberg’s Kriti Gupta, McGuinness detailed the company’s efforts to navigate the evolving plant-based food industry and its approach to overcoming current market challenges.
UK market faces plateau
Impossible Foods is seeking to expand its presence in the UK and the European market. McGuinness pointed out that the UK leads Europe in plant-based consumption, offering a unique opportunity for the company. However, he noted that the market, while initially growing rapidly, has begun to plateau, largely due to issues with taste and consumer confusion. “It started with a big bang, and there was a lot of publicity around it and several huge high-profile IPOs… but it’s kind of correcting itself a little bit… the category is kind of shrinking.”
The company has experienced regulatory delays in the UK, a process McGuinness described as slow but not discouraging. He expressed optimism, stating that once regulatory approval is granted, Impossible Foods is ready to scale its operations rapidly. McGuinness mentioned that the company has already identified manufacturing facilities in the Netherlands for initial shipments and is prepared to shift production to the UK if demand justifies it.
Despite the regulatory hurdles, McGuinness affirmed the company’s commitment to providing better-tasting and more nutritious alternatives to traditional meat: “We’ve shifted the emphasis away from sustainability… leading with climate didn’t work. Selling food, people eat food for taste and nutrition.”
“Leading with climate didn’t work. Selling food, people eat food for taste and nutrition”
He described Impossible Foods’ products as nutritionally dense, noting their protein content and absence of cholesterol and artificial additives. The company has shifted its marketing away from focusing primarily on sustainability, a stance that McGuinness believes has alienated some potential customers. Instead, the company now focuses on taste and nutrition, appealing to a broader audience, including flexitarians.
Tackling price hikes with plants
McGuinness also addressed the impact of rising food prices, particularly in the UK, where inflation has driven up the cost of animal-based products. He argued that plant-based alternatives, which offer competitive pricing and health benefits, present a viable solution for consumers seeking affordable, nutritious options. “Right now our product is kind of at parity with grass-fed organic beef, which is an amazing accomplishment,” he said.
The category is ready to take off
One of the key challenges McGuinness identified was the need for greater investment in plant-based food innovation and marketing. He stressed that in order for the plant-based sector to grow, major food companies need to increase their investment in awareness and trial, a critical step toward broadening the consumer base.
Despite the current financial difficulties faced by some plant-based companies, McGuinness remains confident in the long-term viability of the industry, citing both the growing global demand for sustainable food options and the increasing recognition of the health and environmental benefits of plant-based diets. He concluded, “The plant-based category is declining. It hasn’t even started. We’re in first gear. This category is not dead, it’s ready to take off.”
Watch the full conversation here.
