Impossible Foods reduces food distributor prices by an average of 15%

Impossible Foods lowers its wholesale prices and brings it closer to achieving price parity with the meat that mimics its products.

On average, U.S. food service distributors will pay about 15% less for Impossible’s burger and sausage alternatives in the second price drop in a year. International distributors in Canada, Singapore, Hong Kong and Macau can also expect lower prices on Impossible products.

Manufacturers of meat substitutes such as Impossible strive to lower the price of animal products as part of their broader strategy to persuade consumers to choose their products instead. According to the U.S. Department of Agriculture’s national retail report, on January 1, the average price of meatballs was $ 5.32 per pound. With the latest round of price cuts, the lowest possible wholesale price for the Impossible Burger is $ 6.80 per pound, said Rachel Konrad, company spokeswoman.

The private company said that it achieves production records from month to month, thus achieving greater economies of scale. Since 2019, production has increased six times at plants owned by Impossible and those of its manufacturing partners.

Impossible has demanded that distributors pass on the savings to restaurant businesses, which have largely struggled to stay afloat since the onset of the coronavirus pandemic.

Rival Beyond Meat is also working to lower its prices as more competition enters the market. This summer, he sold frozen value packets of his meatless burger pies. Shares of Beyond, which has a market value of $ 7.93 billion, have risen 67% in the past year.