Just a week after Walt Disney (NYSE:DIS) announced it making Impossible Foods' Impossible Burger its "preferred plant-based burger" at Walt Disney theme parks and aboard Disney-branded cruises, Impossible Foods announced its next move aimed at dominating the market for plant-based "meat" even further:
Impossible Foods is cutting prices.
Impossible Foods is already the preferred provider of meat alternatives at Burger King, Red Robin, Hard Rock Café, and Cheesecake Factory. In a move to expand its attractiveness to even more restaurant chains this morning, Impossible Foods announced it will reduce the prices it charges distributors for its product by an average of 15%, and will encourage these distributors to pass along the price cut to their restaurant customers.
As Reuters reports today, Impossible Foods' price cuts will not apply to Impossible Burgers bought in retail stores -- yet. But CEO Patrick Brown insists, "our stated goal since the founding of the company 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." Today's price cut, therefore, may be "the latest step toward our goal of eliminating animals in the food system" -- but it probably won't be the last.
Impossible Foods' move promises to put pricing pressure on its publicly traded rival Beyond Meat (NASDAQ:BYND), which already isn't profitable despite selling nearly $300 million worth of meatless "meat" over the past year. Despite this making it harder than ever for Beyond Meat to make a profit, however, investors bid up shares of Beyond Meat stock more than 3% in early Tuesday trading.