Impossible Foods, the maker of meat alternatives from soy, is targeting a “liquidity event” in the next two to three years, which could include a public offering, CEO Peter McGuinness told Reuters. However, the CEO stated that the company is not set on an initial public offering (IPO) and is considering other options, such as a sale to another company or a capital raise.
“I don’t want to be pigeonholed into an IPO,” McGuinness said, emphasizing that Impossible Foods is aiming for a liquidity event, whether it’s through an IPO or another method.
Meat alternatives like Impossible and its rival Beyond Meat saw a surge in popularity during the pandemic, securing distribution deals with fast-food chains such as McDonald’s and Yum Brands. Impossible’s patty is featured in the Impossible Whopper at Burger King.
However, as consumers face record levels of food inflation, they have turned to cheaper options, including canned meats. This shift has resulted in a decline in the share price of Beyond Meat, which has lost nearly all of its value since going public in 2019.
McGuinness acknowledged the challenges faced by the alternative meat industry, noting that a 12-ounce package of Impossible ground beef costs $6.78 at Walmart, while a pound of ground beef is on sale for $5.37.
To address this, Impossible Foods is working to expand its distribution beyond the food service industry and into more retail outlets, including Whole Foods and potentially dollar stores and club stores, where cash-strapped consumers are more frequently making their purchases.
The company has also recently revamped its branding and “sharpened its claims” on the product’s nutrition, as McGuinness said, “We’re not leading with the planet because not enough people care. It’s the reality now.”
Despite the challenges faced by the alternative meat industry, Impossible Foods is determined to secure a liquidity event, whether through an IPO or other means, in the next two to three years, as the company seeks to navigate the evolving consumer landscape.