(Reuters) – Impossible Foods Inc, maker of the plant-based Impossible Burger, said Wednesday it will cut prices for food service distributors in the United States by about 15 percent due to growing demand for its burgers.
The price reduction is the second in a year and the Californian company is asking distributors to pass the savings on to restaurants and consumers.
Rival Beyond Meat has partnered with several restaurants including Burger King, Starbucks, and White Castle, and expanded its retail presence to thousands of stores across the United States last year.
With the latest cut, the lowest possible retailer price for Impossible Burger would be $ 6.80 per pound, but it’s still significantly higher than the varying ground beef prices from about $ 2 to $ 3 per pound for low-fat, non-organic varieties, according to the U.S. Department of Agriculture.
Impossible Foods CEO Patrick Brown noted in a statement that the price cut “is not the last”.
The company, known for its vegan meatballs that taste and cook like real meat, said it is also lowering prices for distributors in Canada, Singapore, Hong Kong and Macau, with cuts varying by region.
Demand for plant-based meat increased during the pandemic after beef and pork producers closed many meat factories to curb the rapid spread of the coronavirus outbreak. Impossible Foods said production has increased sixfold since 2019.
Reportage by Nivedita Balu in Bengaluru; Montage of Krishna Chandra Eluri