California grocery stores will be the first to carry the faux meat as of Friday.
Impossible Foods is set to debut its plant-based meat products in grocery stores on Friday. This debut is limited to California for now … But the company plans to expand to grocery stores nationwide by mid-2020.
Starting on Friday, customers can find 12-ounce packages of The Impossible Burger for sale at 27 Gelson’s Markets locations across Southern California. It’s the first time the general public will be able to purchase the Impossible Burger, which impresses consumers with its similarities to real beef.
“Three years ago we introduced plant-based meat to top chefs in America’s most important restaurants. They consistently told us that the Impossible Burger blew them away,” Impossible Foods CEO and Founder Dr. Patrick O. Brown said in a press release. “We can’t wait for home cooks to experience the magic — whether using Impossible Burger in their family favorites or inventing new recipes that go viral.”
The Impossible Burger will sell for $8.99 per package.
This debut comes after Impossible Foods received FDA approval earlier this year for the company’s use of soy leghemoglobin, or heme, in its products. Heme is the key ingredient that gives the Impossible Burger its taste, look, and smell.
Success in Restaurants
While it’s just now making its supermarket debut, the Impossible Burger is already on the menus of over 17,000 restaurants and available across all 50 states.
According to Grubhub’s “State of the Plate” report, vegan orders increased significantly in 2019. Orders for the Impossible Burger, in particular, increased by 82%.
Investors are very optimistic about Impossible Foods’ future. And that’s largely due to the fact that the company’s market isn’t limited to just vegans.
Plant-based companies like Impossible Foods are likely to experience significant growth due to demand from flexitarians — people looking to reduce their meat consumption. Impossible Foods CFO David Lee said that 90% of the company’s sales come from flexitarians.
Euromonitor expects the market for plant-based meats will be worth $2.5 billion in 2023. Jefferies said it could reach $240 billion in revenue by 2040.
As the plant-based meat industry continues to grow, investors are eager to invest in major startups like Beyond Meat and Impossible Foods.
Can Impossible Foods Compete With Beyond Meat?
Impossible Foods directly competes with Beyond Meat, which recently had the most successful IPO of 2019. Beyond Meat shares jumped by over 500% since its May IPO.
While Impossible Foods has great growth potential, Beyond Meat seems to be in the lead. Its products have been available in restaurants and grocery stores for much longer than its competitor.
Analysts seem to be split as to which plant-based meat company will come out on top.
Gregg Smith of Evolution VC Partners said, “Beyond Meat has been successful in launching products with a diverse set of fast-food chains in multiple day-parts for both burgers and sausages and we haven’t seen the same diversity in the customer base from Impossible as the only major launch partner has been Burger King.”
Meanwhile, Andrea Lamari Walne of Manhattan Venture Partners stated, “Impossible is showing they’re clearly a stronger bet over Beyond Meat, because of consumer demand and their growth trajectory.”
While investors eagerly await the company’s public debut, Impossible Foods is in no rush to go public. CEO Pat Brown told CNBC, “Right now, I think it’s not the right time for us to go public.”