The Impossible Burger 2.0, the new and improved version of the company's plant-based vegan burger ... [+] that tastes like real beef is introduced
Plant based meat alternatives company Impossible Foods has reportedly stopped trying to woo McDonald’s as its next big fast-food customer. Even with huge cultural endorsements from investors like Serena Williams, Jaden Smith, Trevor Noah and Jay-Z, that helped push the company’s valuation north of $2 billion doesn’t seem to be enough. Reuters found talks with the Golden Arches fell apart as they had lots of concerns that Impossible Foods would not be able to produce enough imitation burgers to make a deal work, and based on what transpired at Burger King they may be right.
The Breakdown You Need To Know: Impossible Foods has deals with big restaurant chains in addition to Burger King, including Red Robin and White Castle, they also have products in retail stores. Last June, White Castle suffered a month-long shortage of Impossible Slider patties due to the company’s production issues. Prior to those problems, in April 2018 when the bleeding meatless burgers came to Burger King, many customers reported shortages. CultureBanx found that not only should McDonald’s and Impossible Foods be concerned, but the startup company’s investors should be as well. In its latest funding round they picked up another $300 million, with a new valuation of $2 billion, as they aim to completely remove animals from the food system by 2035.
There’s stiff competition for faux meat, back in May Impossible Foods biggest competitor Beyond Meat went public, its shares gained 163% on day one. They now command a market share of $6 billion. Beyond Meat does have an ace in their back pocket because Former McDonald’s CEO Don Thompson’s venture-capital firm Cleveland Avenue was an early investor in the company. So perhaps the big mac maker should be focusing way more attention on Beyond Meat and not Impossible Foods.
Impossible Foods is working to more than double its production, and they should because Beyond Meat is already testing its vegan burgers at dozens of McDonald’s restaurants in Canada. These two companies are having conversations, and Beyond Meat claims it would have no problem meeting the burger giant’s global demand, according to Reuters. Also, shares surged up more than 12% for Beyond Meat once news hit about the failed talks between its rival and McDonald’s.
Faux Meats Real Upside: It’s great that so many black cultural trendsetters are putting their money where the mouth is by investing in Impossible Foods, especially with hypertension and heart disease so common within our community. Nearly 44% of African American men and 48% of African American women have some form of cardiovascular disease that includes heart disease, according to the CDC. The government group notes that one of the ways to control these diseases is through a healthy diet, so perhaps plant based alternatives can help bring these numbers down in the black community.
Meatless burgers really could be a win for everyone across the board. The Good Food Institute reported that investment in the faux meat space has reached $16 billion over the last decade. Also, supermarket sales of meat alternatives grew 19% to $878 million last year, according to Nielsen data. Even though sales of plant-based meat alone generated $684 million in 2018, it still pales in comparison to the $270 billion in annual U.S. meat industry sales.