Maker of the plant-based Impossible Burger Impossible Foods Inc has that it will cut prices for foodservice distributors in the United States by approximately 15% amid increasing demand for its burgers.
The price cut will be its second in a year, and the California-based company is asking distributors to pass the savings on to restaurants and consumers.
The Beyond Meat rival has tied up with several restaurants including Burger King, Starbucks and White Castle, and it expanded its retail footprint to thousands of stores across the United States last year.
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With the latest cut, the lowest possible price to distributors for the Impossible Burger will be $6.80 per pound, but it is still significantly higher than ground beef prices which range from approximately $2 to $3 per pound for low fat and non-organic varieties, according to the United States Department of Agriculture.
Impossible Foods CEO Patrick Brown noted in a statement that the price cut is "not the last".
The company, which is known for its vegan patties that taste and cook like real meat, said that it is also lowering prices for distributors in Canada, Singapore, Hong Kong and Macau, with varying cuts based on the region.
Rising Demand For Plant-Based Meat
Demand for plant-based meat has risen during the pandemic after beef and pork producers shut many meat plants to curb the rapid spread of the coronavirus outbreak. Impossible Foods said that production has increased six-fold since 2019.