Veggie burger with a side of layoffs… Fake-meat fabricator Impossible Foods said it plans to cut 20% of its employees this year, after axing 6% in October. Publicly traded rival Beyond Meat laid off 20% of its staff last year, and its stock is down 70% over the past year. Alt meat had a juicy moment prepandemic, but demand for plant-based patties has plunged as inflation-stung consumers opt for cheaper eats.
Freezer-burned: Supermarket alt-meat sales fell 14% last year, whereas real-beef sales fell 4%.
Impossible prices: Shoppers may be turning away from plant-based patties because they're typically more expensive than animal meat.
Profits served extra rare… but there's a plant-based bright spot: while overall supermarket alt-meat sales fell, Impossible said its sales at grocery stores were up 50% last year. Plus, Impossible's CEO said 83% of the US has never heard of the company — despite patty partnerships with chains like Burger King and Starbucks — suggesting there’s room to grow. The privately held biz said that almost half its customers are repeat buyers, and 90% of purchases come from meat eaters (hello, flexitarians).
Barriers get higher when spirits get low… With food prices up nearly 10%, it may be harder for shoppers to stomach pricier mock meats — and the barrier to trying out plant-based is higher. Still, the alt-meat market is relatively new, and success may end up tasting like chicken: while overall sales of refrigerated faux meats fell in the second half of last year, sales of faux chicken jumped.