- It's Impossible Foods' second round of price cuts in under a year.
- The maker of plant-based meats said its production has increased by six times since 2019.
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 at plants owned by Impossible and those of its manufacturing partners.
The company asked that distributors pass along the savings to restaurant operators, who have largely been struggling to stay afloat during the coronavirus pandemic.
Rival Beyond Meat has also been working toward cutting its prices as more competition enters the market. This summer, it sold frozen value packs of its meatless burger patties. Shares of Beyond, which has a market value of $7.93 billion, have risen 67% in the last year.