Eating plant-based meat is becoming more competitively priced with ground beef.
Impossible Foods, the maker of plant-based burger and meat alternatives, announced Tuesday that it would be cutting its retail prices by 20% for grocery stores throughout the U.S.
Packages of beef are displayed for sale alongside Impossible Burger plant-based meat. (Patrick T. Fallon/Bloomberg via Getty Images).
The company, based in Redwood City, Calif., is now listing a suggested retail price of $5.49 for Impossible Burger patties, and $6.99 for a 12-ounce package, although in-store prices may vary depending on location and the retailer, the company said.
“With economies of scale, we intend to keep lowering prices until we undercut those of ground beef from cows. Today’s price cut is merely our latest — not our last,” Impossible Foods CEO and Founder Patrick Brown said in a statement.
The privately-owned company has increased its retail presence by more than 100 times since the beginning of the coronavirus pandemic, which has largely fueled consumer interest in meat alternatives, the result of more at-home dining, as well as shortages of meat due to COVID-19 outbreaks at meatpacking plants in some areas of the country. The Impossible Burger, the company’s meatless staple, was sold in just 150 grocery stores one year ago; the product is now available in nearly 17,000 supermarkets and retailers including Albertsons, Kroger, Publix, Sprouts, Trader Joe’s and Walmart, among other retailers.
Impossible Foods says its plant-based meat production has increased sixfold since 2019, in Oakland and at multiple plants owned by co-manufacturing partners.
The company’s major competitor in the space, Beyond Meat, also expanded its partnership with Walmart, growing its presence in the retailer’s locations to more than 2,400 stores.
Last month, Impossible Foods cut prices on average by around 15% for foodservice distributors to sell in restaurants. Despite this, and the most recent news of price cuts for grocery stores, consumers will still be paying more for the plant-based patties than they would for real beef, according to the latest national beef retail report from the U.S. Department of Agriculture.
Meanwhile, more food companies are getting behind plant-based meat. PepsiCo. last week announced a partnership with Beyond Meat to develop new snacks and drinks made with plant-based protein.