The Impossible Burger made by Impossible Foods
Source: Impossible Foods
Impossible Foods is dropping its wholesale prices, bringing it closer to achieving price parity with the meats its products mimic.
On average, American food service distributors pay about 15% less for Impossible’s hamburger and sausage alternatives in the second price drop in a year. International distributors in Canada, Singapore, Hong Kong and Macau can also expect prices of Impossible products to drop.
Meat substitute makers like Impossible strive to undermine the price of animal products as part of their broader strategy of convincing consumers to opt for their products instead. On Jan. 1, the average price of beef patties was $ 5.32 per pound, according to the United States Department of Agriculture’s national retail report. With the latest price cuts, the lowest possible wholesale price for the Impossible Burger is $ 6.80 per pound, said company spokesman Rachel Konrad.
The private company said it is hitting production records month-to-month, earning greater economies of scale. Since 2019, production has increased sixfold at Impossible factories and those of its manufacturing partners.
Impossibly asked for distributors to pass the savings on to restaurant operators, who have largely struggled to keep afloat since the start of the coronavirus pandemic.
Rival Beyond Meat has also been working to lower prices as more competition enters the market. This summer, it sold frozen packs of its meatless burger patties. Shares of Beyond, with a market value of $ 7.93 billion, are up 67% over the past year.