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· Impossible Foods cuts wholesale prices by 15% for second time in one year
· Impossible Foods cuts prices for food-service distributors, moving closer to parity with meat
Impossible Foods cuts wholesale prices by 15% for second time in one year
Reporting by Nivedita Balu in Bengaluru; Editing by Krishna Chandra Eluri, Reuters
January 6, 2021
(Reuters) - Impossible Foods Inc, maker of the plant-based Impossible Burger, said on Wednesday it would cut prices for foodservice distributors in the United States by about 15% amid increasing demand for its burgers.
The price cut is its second in a year and the California-based company is asking distributors to pass on the savings to restaurants and consumers.
The Beyond Meat rival has tied up with several restaurants including Burger King, Starbucks and White Castle, and expanded its retail footprint to thousands of stores across the United States last year.
With the latest cut, the lowest possible price to distributors for the Impossible Burger would be $6.80 per pound, but it is still significantly higher than ground beef prices which range from about $2 to $3 per pound for low fat and non-organic varieties, according to the United States Department of Agriculture.
Impossible Foods Chief Executive Officer Patrick Brown in a statement noted the price cut is “not the last”.
Impossible Foods cuts prices for food-service distributors, moving closer to parity with meat
o It’s Impossible Foods’ second round of price cuts in under a year.
o The maker of plant-based meats said its production has increased by six times since 2019.
Amelia Lucas, CNBC
Jan 6 2021
Impossible Foods is cutting its wholesale prices, drawing it closer to achieving price parity with the meat its products mimic.
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 to see slashed prices on Impossible products.
Makers of meat substitutes like Impossible are striving to undercut the price of animal products as part of their broader strategy to persuade consumers to choose their products instead. As of Jan. 1, the average price of beef patties was $5.32 per pound, according to the U.S. Department of Agriculture’s national retail report. With the latest round of price cuts, the lowest possible wholesale price for the Impossible Burger is $6.80 per pound, company spokesperson Rachel Konrad said.
The privately held company said it’s hitting monthly production records, helping it achieve greater economies of scale. Since 2019, production has increased by six times...
... Rival Beyond Meat has also been working toward cutting its prices...
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