Impossible Foods denies report that fake meat is a ‘fad’

Impossible Foods said it had achieved record sales since 2016, when its fake meat first appeared on the restaurant menu, and added that it was tired of being mixed with its struggling competitor, Beyond Meat.

In a Sunday blog post, Impossible Foods took issue with last week’s Bloomberg Businessweek report, which described the sector as “another fad.”

The report cites Beyond Meat’s terrible financial performance over the past year and changes, as well as a 14% and 9% decline in counterfeit meat sales in supermarkets and restaurants in 2022, respectively, according to industry data.

But Redwood City, Calif.-based Impossible Foods, a privately held company, says the numbers don’t reflect its own results.

According to the company, demand for Impossible Foods patties at restaurants including Burger King, Starbucks and Applebee’s has been growing annually since 2016, and sales of its products in supermarkets have grown by 50%.

“Our products have only been in grocery stores for the last 2-3 years,” the blog post reads. “Since our commercial debut, we have not engaged in sustained marketing or advertising to build awareness. Other than a little help from our friends (at Burger King), our audience mostly found their way to us on their own,” the blog post reads.

Beyond Meat’s share price has fallen to about $16, or 75%, from a year ago and is having a “halo effect across the sector” according to restaurant analyst Mark Kalinowski.

“In some moment [a company] has to stand up for itself, especially if it doesn’t experience such downturns,” Kalinowski said of Impossible Foods.

Impossible Foods says it’s sold in more than 30,000 grocery stores including Costco, Trader Joe’s, Walmart and Target – up from 150 in 2020 – and that more than 45,000 restaurants carry its products.

“It’s disappointing that this category has a bad reputation,” Impossible Foods chief executive Peter McGuinness told the industry publication Food Navigator-USA.com last year. “But some other players have their own issues that are not ours.”

Beyond Meat has suffered a number of recent setbacks, including reports that its manufacturing facility is riddled with mold and that its former COO bit another man’s nose at a college football game. According to one analyst, consumers see the industry as “too awake,” hindering sales.