Plant-based food maker and Beyond Meat Inc (NASDAQ: BYND) rival Impossible Foods announced Tuesday a new price cut at grocery stores as part of its strategy to “completely replace animals as part of the food system,” Impossible Foods President Dennis Woodside said on “Bloomberg Markets: The Close.”
Price Cut: Impossible Foods slashed the retail price of its plant-based meat alternative products by 20% in the U.S. The decision to cut prices follows the company’s growth over the past year from 200 stores to 17,000 stores and a nine-fold increase in production.
“With that scale, we are getting efficiencies in our production system, we are seeing lower unit costs and we are passing those on to consumers,” he said. “And that’s our strategy.”
Ultimately, the company plans to price its products identical to commodity-based beef. After the recent price cuts, Impossible Foods’ products are within the price range of pricier organic, grass-fed beef.
Competing Against Cows: Impossible Foods doesn’t necessarily see itself competing with other plant-based food makers for market share. Rather, Impossible Foods competes against “the cow.” The stats speak for themselves as 80% of consumers switched over to Impossible Foods from a traditional animal meat product.
“Our products are delicious, it’s better for you,” he said. “No cholesterol, lower saturated fat, lower calories.”
New Product Innovation: The global market for meat is 1 trillion pounds, while plant-based food makers have a market share of less than 1% in the U.S. of total volume, the executive said. Further market share growth will come from existing and new categories, including pork, steak, chicken and even milk.
“We are so early in this whole game,” he said.
(Photo: Impossible Foods)
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