“Less than a year ago, we cut foodservice prices by 15%. Today’s price cut is just the latest – not the last – step toward making the food system sustainable.”

This week, meatless company Impossible Foods announced that it is reducing the wholesale prices of its burgers and sausage alternatives in an effort to undercut the prices of animal-derived meat.

The food tech start-up has reduced the prices it charges its United States-based foodservice distributors by an average of 15%.

The brand is also working to extend the price cuts to its international distributors in Canada, Singapore, Hong Kong, and Macau.

This is the second price drop in a year following a previous 15 % cut in March and the move is part of a broader strategy to entice shoppers to choose meat- alternatives.

‘Price parity’

The price reduction is slowly bringing the price of meat alternatives closer to its traditional counterpart. CNBC reports that the U.S. Department of Agriculture’s national retail report shows that as of Jan. 1, beef patties were retailing at around $5.32 per pound, and the Impossible Burger will now cost around $6.80 per pound with the latest round of price reductions.

“Our stated goal since Impossible Foods’ founding has always been to drive down prices through economies of scale, reach price parity and then undercut the price of conventional ground beef from cows,” Impossible Foods CEO and Founder Dr. Patrick O. Brown, said.

“Less than a year ago, we cut foodservice prices by 15%. Today’s price cut is just the latest – not the last – step toward making the food system sustainable.”

Since retail prices of the products remain unaffected, Impossible Foods is urging its US foodservice distributors to pass the savings to restaurant partners such as Burger King, Disney, Starbucks, and others, which can then lower the cost for menu items that use its plant-based meat.

Impossible Foods President Dennis Woodside said. “While we couldn’t and wouldn’t determine pricing for independent third parties, we sincerely hope our food distributor colleagues pass along this price cut to hard-working restaurateurs and their customers in this unprecedented time of need.

“As unemployment remains stubbornly high and the effects of COVID-19 continue to ravage the economy, it’s imperative to provide affordable, delicious, and sustainable food to restaurants and the public.”

Impossible Foods’ growth trend

Despite the pandemic throwing a spanner in the works for several food manufacturing businesses, Impossible Foods spent 2020 in rapid scale-up mode increasing capacity six-fold since 2019.

It has also worked on retail expansion and now, about 33,000 restaurants in the U.S. sell Impossible products, and its burgers retail in more than 11,000 grocery stores nationwide, as well as through the direct-to-consumer option online.

The company has more plans in the pipeline as part of its mission to disrupt animal agriculture on a global scale.

Apart from making its meat alternatives more delicious, healthier, and cheaper than the real thing, the company is also working on producing a plant-based milk prototype that looks, tastes, and functions just like its dairy counterpart.

• Read: Veganuary on course for biggest year as COVID fuels vegan surge

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