Is Impossible Foods Stock a Solid Long Term Investment?

plant based food

Impossible Foods stock is not publicly available for trade yet. Though this has not stopped people from asking if the stock would make a solid long-term investment. Unless you’re in the private equity sector is it unlikely that many options to buy or sell the stock will be available now. However, this could change in the coming months. The company specializes in plant-based and other faux meat products that will soon be hitting many more consumers plates. As the calls for more ethically and environmentally-friendly sourced meats increase, Impossible Foods has positioned itself to be a market maker in the alternative meat industry. It seems that this has been met with much success as the company has just received a private evaluation of over $2 billion dollars. It won’t be long before these meatless products line various grocery store aisles all around the country.

Faux meat is big business. There is no better example of this than Disney selecting Impossible Foods as its preferred provider for its burger patties. This is a client that will be worth millions for the food firm. It is a step in the right direction for the fledging company, who utilized their unique talents to compete in a dog-eat-dog business environment. It will be interesting to see how the company progresses forward. There have been rumors that the company may consider going public, like rival Beyond Meat, but specific details have been scarce. It always pays to be an early mover in these industries so it would be prudent to keep a watchful eye on the company in the coming year. There are many possible markets for meatless products, including new and emerging investment opportunities. It will be interesting to see how the company adapts given the changing business climate.

Alternative Methods for Faux Meat Products

When it comes to faux meat products, there are two common schools of thought. One camp believes that real-meat alternatives are the best way to serve the needs of consumers. This includes meat that is grown in labs and consists of the same material as real meat. One of the problems is that this method has not yet been found to be commercially viable for large-scale operations. However, it may be more plausible once the cost of production goes down. But, at this point in time the lab-grown model does not scale well enough to feed large populations. This is something that may well change in the future. Different companies take different approaches to meet scaling needs, so Impossible Meats will need to continue cultivating its identity to stay relevant with new cultural norms. Though lab-grown meat has other problems besides scaling, the primary one being that people are not always easily convinced to eat the product. It’s going to take major marketing efforts for consumers and manufacturers to get on the same page.

The second route for faux meat products is plant-based alternatives. This is the method that Impossible Foods is making an imperative for the time being. With marketing footholds already established, it is clear that the company has put a heavy emphasis on their plant-based products. Due to familiarity with the product, people seem far more inclined to partake. The company had also been aided by a slew of positive marketing campaigns including Burger King’s nationwide push for the Impossible Whopper. For some reason plant-based faux meat products have inherently less “ick factor” than their clone meat counterparts. It appears that Impossible Foods will continue to embrace this route for the time being. Given that it continues to secure big clients, there is little incentive to change or alter the current business model. Right now, it is about how effectively the company can continue to scale to meet the economic requirements of its business.

Acceptance Still Needs to Become Mainstream

For the drive to reach more mainstream audiences, the company has crafted unique food products that can be readily accessible to the average consumer. One example of a recent exploration into possible plant-based meats was a report that Taco Bell was considering adding Impossible Foods meatless products to its menu. This could be a great opportunity for Impossible Foods to expand and show that their products stack up. It appears that many are still skeptical of how meat-based products could possibly resemble real beef. Given Taco Bell’s positioning in the mainstream consciousness this could promote the company in a way that it has not previously seen. The key to success is making great products that people want to eat. If Impossible Foods can get people excited about plants, then they will be able to continue converting sales. It’s difficult to see this momentum stopping if these products get ingrained into Americans day-to-day habits.

There are plenty of challenges that still need to be met in order to make this vision a reality. Impossible Foods has recently come under fire for using GMO products in its plant-based alternatives. It doesn’t help that their main competitors don’t use GMOs either. One of the most important aspects of the Impossible Foods burger is that it gives off a juice that resembles biting into real meat. This effect comes from a hemoglobin called ‘heme’ and is an important part of replicating an authentic burger. However, this is made in the lab from yeast and requires GMO components to bring it to scale. It remains to be seen how customers will react to this, given that meat juice is typically not associated with plants. Time will tell what consumers are looking for and the company will have to make adjustments based on what people are demanding.

Conclusion

Overall, the future looks bright for Impossible Foods. It is clear that the trend is towards more plant-based and environmentally sustainable products. The company can easily make the pitch that it is on the forefront of developing a new way of eating in the 2020s. The new decade will ring in plenty of opportunities for the company. Though it is not yet available to the public, it would be prudent to keep the company on your investment watchlist.


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