Dr. Patrick O. Brown, Professor Emeritus of Biochemistry at Stanford University's School of Medicine, is the founder and CEO of Impossible Foods. The firm's goal was to study and extract the characteristics that make Meat appealing and then recreate them in a plant-based replacement.
Impossible Foods debuted its burger alternative in 2016; then, in 2019, it improved its formulation. Impossible Sausage was released in 2020.
According to Reuters, Impossible Foods was planning to go public in April 2021 via an IPO or a SPAC merger, with a value of about $10 billion.
Are Impossible Foods planning an initial public offering this year? What are the advantages and disadvantages? Is it possible to invest before the IPO?
What exactly are Impossible Foods?
The objective of Impossible Foods is to "make the global food system genuinely sustainable by removing the need to manufacture food from animals," according to the Company. They propose to reproduce the whole sensory experience of MeatMeat, dairy, and fish in plant-based goods.
Impossible Foods discovered that the distinctive element that gives MeatMeat its taste is a single molecule called heme, a precursor to hemoglobin. They use genetically altered yeast to make this chemical, including in their goods.
The Impossible Foods burger was first introduced in 2016 and revised in 2019. In 202, the Company released Impossible Sausage in savory and spicy varieties and chicken nugget, meatball, and hog alternatives.
Impossible Foods goods are presently sold at over 22,000 grocery stores and 40,000 restaurants across the globe, including Starbucks and Burger King. The firm claims to be the world's fastest-growing plant-based meat replacement manufacturer.
Impossible Foods advertises its goods as a meat substitute that is sustainable and ecologically friendly. They claim that an Impossible burger consumes 96 percent less land and 87 percent less water than beef while emitting 89 percent fewer greenhouse emissions and 92 percent less water pollution.
Impossible Foods Facts 101
This is how Impossible portrays its path to a new way of eating:
"What makes flesh taste like meat?" we began with a simple query. Then we took everything we love about MeatMeat and improved it by using plants instead.
The firm's purpose was to develop a meat replacement that was virtually indistinguishable from the genuine thing. Tasked scientists did this by figuring out the origins of the textures and tastes most strongly associated with animal goods.
They found that the chemical heme, which gives MeatMeat its taste, can be replicated using plant-based sources. Impossible Foods' heme is made from a proprietary yeast that has undergone extensive food safety testing.
Some critics have voiced reservations about Impossible Foods' usage of genetically engineered ingredients. Founder and CEO Patrick Brown stated this when questioned about the problem during the January 2019 presentation of Impossible Burger 2.0 at the Consumer Electronics Show in Las Vegas:
From a consumer safety viewpoint, the notion that heme is created by genetic engineering is irrelevant. It's a far safer method to make it than isolating it from soybean roots, and it's a lot safer than filling the whole earth with cows, which is how we're now doing.
Impossible foods are meant to provide the same amount of protein as animal-based alternatives and essential elements like iron, calcium, and fiber — but without cholesterol.
Even better, Impossible goods are free of hormones and antibiotics, common in MeatMeat from large-scale manufacturers.
The Company's mission is to provide meat-free alternatives that provide all of the nutritional benefits of animal products without the disadvantages. "We're not only a technological firm," the Company's management declares. We are the most significant technology business on the planet right now."
Impossible Foods' Advantages
Impossible Foods goods have made their way into the mainstream, including The Impossible Burger on the Burger King menu and grocery store shelves. The organization is proud of the many advantages of a shift away from meat consumption, notably the influence on environmental health.
Impossible Foods burgers use 87 percent less water and 96 percent less land to produce than ground beef, according to a study.
Impossible Foods burgers produce 92 percent less nutritional pollution and 89 percent less GHG emissions than conventional ground beef.
By 2035, the firm wants to be free of the present industrial farming system and meat consumption.
Some of the world's most respected organizations have recognized the Company's progress toward that aim. Impossible Foods, for example, received the Environment Planetary Health Champion of the Earth Award from the United Nations in 2018.
Though the objective of removing MeatMeat from most diets by 2035 seems to be unattainable, Impossible Foods has already achieved extraordinary progress. Many industry experts feel that if it can be done, Impossible Foods might be the business to achieve it first.
Impossible Foods was planning for a public offering "in the next 12 months," according to Reuters, either an IPO or SPAC, that would value the Company at $10 billion or more.
That would indicate a scheduled April 2022 listing. That timeline seems improbable: no official intentions have been published, and no S-1 has been filed. Due to market uncertainties, the Company may have decided to postpone the listing.
The date of Impossible Food's first public offering is unknown. To avoid diluting present shareholdings, most experts believe the Company would favor an IPO listing over a SPAC merger. When the Company feels favorable market circumstances, it plans to go public.
What Do We Know About the Fundamentals of Impossible Foods?
Impossible Foods is a privately owned firm that does not disclose financial information, and we will not have a good view of the Company's financials until they submit a prospectus.
Some information may be gleaned through public reports, albeit their correctness is difficult to verify.
According to Reuters, the number of outlets offering Impossible Foods goods grew from 150 to 20,000 in the previous year.
According to Forbes, Impossible Foods 2021 sales were up 85 percent over 2020 in February 2022.
Impossible Foods claims to be the world's fastest-growing retailer of plant-based Meat.
The other assertions make sense if the expansion from 150 to 20,000 outlets in 2021 is correct. This estimated growth rate is far from guaranteed to be sustained.
Impossible Foods may wait until they file a formal prospectus before disclosing further information about company finances and business potential. The publicly accessible information about Impossible Foods' basics is still insufficient to make significant judgments.
Impossible Foods has raised $2.1 billion in 23 rounds of private finance. The most recent round of funding took place on November 23, 2021. The Company obtained $500 million in a fundraising round, valuing around $7 billion.
Impossible Foods has received funding from 56 venture capital firms, including seven lead investors. Mirae Asset Global Investments, Global Secure Invest, Impede Capital, Temasek Holdings, and Serena Williams are the lead investors.
Despite the growing popularity of meat substitutes, Americans still prefer real MeatMeat. According to the USDA, the typical American eats 2.4 burgers per day, for 50 billion burgers consumed a year.
It's also unclear if customers would be healthier. The Impossible Whopper, for example, has roughly the same number of calories as a regular Whopper but more salt. What happens if it turns out that people aren't as much better off as Impossible claims?
What happens, furthermore, if Americans choose the Lightlife Burger? Or is there another plant-based option?
If you decide to buy after the firm goes public, do it with caution and be prepared for the volatility that Beyond Meat has experienced. That disclaimer may not fulfill your desire for a meat-free future, but bingeing on Impossible Foods comes with significant hazards.
Aspect to Consider: Beyond Meat
Beyond Meat, a competitor of Impossible Foods, went public on May 2, 2019, for $25 per share. Beyond MeatMeat was selling at 400% over the IPO price in April 2021, when Impossible Foods was initially rumored to be pursuing an IPO.
Beyond MeatMeat reached a high of about $195 per share in October 2020. The stock has since dropped sharply, and shares are currently selling for about $40, valuing the Company at under $3 billion. Sales growth was slowing, and losses were increasing.
Some analysts believe Impossible Foods will struggle to maintain a higher valuation than Beyond Meat, and Beyond Meat's poor performance in the second half of 2021 and early 2022 may prompt Impossible Foods to postpone its IPO until the market has a more favorable view of plant-based meat substitutes.
Impossible Foods is presently a privately owned firm with no publicly traded shares. Purchases via traditional brokers will be unavailable until the Company is publicly traded.
How to Purchase Impossible Foods Stock
Those interested in purchasing Impossible Foods shares still have choices. You may be able to purchase via pre-IPO exchanges. These exchanges acquire stock from early investors or workers who have stock options as part of their salary, and the shares are then resold to pre-IPO investors.
Invest After the Initial Public Offering
If you believe Impossible Foods will be an excellent long-term investment, the most straightforward approach to purchasing the shares is to wait until the IPO is completed. You may then purchase with no limits or qualifications via your normal broker. You will be able to sell the shares whenever you choose.
You won't receive the low per-share price of a pre-IPO or even an IPO investment, but you'll take on much less risk. You'll also have the opportunity to see how the market reacts to the IPO before deciding.
Your entry price will be significantly inflated if the stock increases immediately after the IPO, but this is not assured. The difference is unlikely to be considered if you expect to retain the stock for a long period.
The Case for Impossible Foods' Initial Public Offering
Impossible Foods set out to do more than just make a better vegetarian burger when the Company was founded in 2011. The goal was to produce something appealing to meat-eaters.
The business claims to have created a burger that looks and tastes like beef but is comprised entirely of plant matter rather than MeatMeat. The chemical heme is the crucial component, according to Impossible, since it "makes meat taste like meat." Its Sausage, pork, and chicken nugget product lines employ similar procedures.
As unbelievable as it may seem, the Company's unique strategy has resulted in amazing growth. Retail sales for Impossible Foods in 2021 were up 85 percent year over year, and its items can be found in 20,000 supermarkets and 40,000 restaurants.
Impossible has capitalized on rising demand for their superior burger. According to UBS, plant-based food sales are expected to increase from $4.6 billion in 2018 to $85 billion by 2030. According to market data, millennials are the generation most committed to plant-based meat alternatives.
Consumers are seeking healthier choices that still taste delicious, and worries about climate change may raise demand for items that emit less carbon.
In recent years, impact investing, particularly ESG (environmental, social, and governance), has attracted tens of billions of dollars in investment money. Impossible Foods is ideally positioned to take advantage of these developments.
The Case Against the Impossible Foods Initial Public Offering
The Company's major competitor, Beyond Meat, serves as a cautionary tale for potential Impossible Foods IPO investors.
Despite a strong start fueled by massive burger and chicken nugget partnerships with McDonald's and Yum Brands (parent of KFC), BYND's stock is trading at roughly $65 per share over three years after going public. BYND has dropped by more than 60% in the previous 12 months as of February 1, 2022.
There's little denying that the Covid-19 outbreak has wreaked havoc on restaurant revenues. According to some experts, Beyond Meat may regain lost momentum when it secures future collaborations with other companies, including major international expansion.
The problem is that Impossible Foods has more than Beyond Meat on its hands, and Tyson, Perdue, Smithfield, and Hormel have all released meat substitutes. While millennials would sooner eat a Big Mac than Hormel's Rhiza in a bun, competing with some of the country's top consumer staples firms is difficult.
Are Impossible Foods a Cause for Concern?
Early-stage enterprises are frequently hazardous investments, and assessing the risks may be difficult until the Company's entire financials are revealed in a thorough prospectus. Before you invest in Impossible Foods, consider the following points.
Impossible Foods is up against the stiff competition. Beyond MeatMeat is the most well-known rival, but big food companies such as Hormel, Perdue, Tyson, and Smithfield produce plant-based meat alternatives. It's impossible to predict which items customers would favor.
Regulations may prevent international growth. Impossible Foods creates the chemical that gives its products their meat-like taste using genetically engineered yeast. This has prompted regulatory concerns in regions where GMOs are still frowned upon, such as Europe and China. Even if authorities are more favorable, some customers in other areas may be wary of the GMO link.
Market reaction is uncertain. After its IPO, competitor Beyond MeatMeat soared to new heights, only to crash. The market's negative view of the plant-based meat replacement sector is raised by Beyond Meat's poor performance over the previous six months.
Information is scarce. Impossible Foods is not obligated to provide financial information until it files a prospectus for a public offering. You'll have a limited quantity of information to judge the Company's present financial status if you buy before it becomes public.
These dangers are hypothetical, and they may or may not turn out to be severe problems. There may also be dangers that are not yet recognized or expected.
Conclusion
Impossible Foods has gotten a lot of buzzes, and the IPO is expected to be big. The Company has a large public presence and has a lot of celebrity backers on board.
Of course, a high profile does not ensure success, and everything about the IPO remains speculative. The Company should not need to hurry for a public listing because of the investment round last November, which should provide adequate operating cash for some time.
Impossible Foods has said that the Company plans to go public, although the IPO will most likely be delayed until market circumstances are more stable and favorable.
A private equity marketplace may allow you to acquire pre-IPO shares. If your broker has a share allocation, you may be eligible to participate in the IPO.
Pre-IPO shares may be available on private equity exchanges, and chosen brokers may be able to participate in the IPO. In any case, you'll have to go through a qualification process. After the first public offering, you may purchase shares.
Before making any investment, you should thoroughly evaluate the firm. Consider speaking with a competent financial adviser about your intentions.
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