Impossible Foods Slashes Wholesale Prices

Impossible Foods said it was slicing the wholesale prices of its plant-based-meat products by 15%, citing manufacturing efficiencies and economies of scale.
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Impossible Foods, the closely held plant-based-meat maker, is cutting the wholesale prices of its products by 15% on average.

The company's publicly traded rival, Beyond Meat  (BYND) - Get Report, early in Tuesday trading was nearly 5.5% higher. In a broad-market slump, Beyond Meat shares recently were trading down 0.2% at $95.89.

Impossible Foods, Redwood City, Calif., credited manufacturing efficiencies and economies of scale as the reasons for the price cut.

Impossible is making its push at a time when Beyond Meat’s stock is dipping following its quarterly earnings release. 

While Beyond Meat tripled its revenue for the fourth quarter, the company posted a loss of a penny a share, while analysts surveyed by FactSet were expecting a profit of a penny a share.

Beyond Meat has been adopted by numerous retailers. Most recently the Seattle coffee-bar giant Starbucks  (SBUX) - Get Report said that starting March 3, it would be introducing a Beyond Meat, cheddar and egg sandwich as part of its core menu offerings at some 1,400 Canadian stores.

Impossible’s highest-profile partnership is the Impossible Whopper, through Restaurant Brands’  (QSR) - Get Report Burger King fast-food franchise.

The plant-based meat landscape is also getting more crowded with Nestle  (NSRGY) - Get Report, family-owned Perdue Foods and Tyson  (TSN) - Get Report all recently launching alternative-meat options. 

Also in the market: Maple Leaf Foods of Canada with its Lightlife brand; the Smithfield Foods division of China's WH Group with the Pure Farmland brand, and Hormel  (HRL) - Get Report with the Happy Little Plants label.