Impossible Foods, maker of the plant-based Impossible Burger, will cut prices for foodservice distributors globally by varying rates, starting with a 15 per cent reduction in the US.
The move follows soaring demand for its plant-based burger patties now being served by fast-food chains and restaurants in many international markets.
In a statement issued in Hong Kong, Impossible said the cuts followed “continued production records”.
Wholesale prices will fall by double-digit rates in Canada, Singapore, Hong Kong and Macau this month, applying to all foodservice products sold overseas. The actual rate will vary market by market.
Impossible has partnerships with several restaurants including Burger King, Starbucks and White Castle, and expanded its retail footprint to thousands of stores across the US last year.
With the latest cut, the lowest possible price to US distributors for the Impossible Burger would be US$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 US Department of Agriculture.
Impossible Foods CEO Patrick Brown in a statement the price cut is “not the last”.
“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,”he said.
The company has urged retailers and restaurant operators to pass on the price reductions to customers.
“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,” said Impossible Foods president Dennis Woodside.
- Additional reporting by Reuters.