The Business of Chemistry and Biology

INSIDE THE STRANGE SCIENCE OF THE FAKE MEAT THAT ‘BLEEDS’

IMPOSSIBLE FOODS INC

CHY599: The Business of Chemistry and Biology

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Alisa Mehrin Alam

Student#: 500643133
Professor Edward Petroff

March 27th, 2019

Impossible Foods Inc. is a private company that creates plant-based alternatives for meat and dairy products. The key executives are: Patrick O. Brown Phd (CEO/Founde), Dennis Woodside (President), David Lee (CFO/COO), Tara Kriese (Senior VP of Marketing), Christopher Gregg (Senior VP of Supply Chain & Manufacturing), and Dana R Wagner, Marcella Butler and David Lipman are the Chief Legal Officers. The company is headquartered in Redwood City, California, and their goal is to provide consumers the nutritional value and the rich taste of meat without negatively impacting their health and the environment that is associated with meat products (CrunchBase, 2019). Through research and development, the company examines molecules in meat products, then picks specific nutrients and proteins from plants to mimic the taste and behaviour of meat and dairy products. In July 2016, the company launched its signature product, the Impossible Burger.

In 2009, Patrick Brown, a Stanford biochemistry professor strongly believed that industrial animal agriculture was the main environmental issue at the time. As a result, he devoted 18 months to reducing intensive animal farming (Pacific Standard, 2016). In 2010, Brown also assisted in organizing a conference to raise awareness regarding animal agriculture in Washington, D.C. However, the workshop named "The Role of Animal Agriculture in a Sustainable 21st Century Global Food System" had insignificant impact which led Brown to believe that it would be ideal to offer a competing product on the free market in order to decrease animal agriculture (Pacific Standard, 2016).

Brown founded Impossible Foods in 2011 (Tech Crunch 2015). In July 2016, the company launched their first product, the Impossible Burger, which is made from plant-based materials (Mic, 2016). Producing the Impossible Burger utilizes 74% less water and 95% less land, and it emits approximately 87% less greenhouse gas than producing a beef burger patty from livestock (ForTheWin, 2016). Compared to a similar-sized beef patty, the plant-based patty has more protein, no cholesterol, less total fat, and fewer calories (NPR, 2016). However, the plant-based patty contains more saturated fats and more sodium than a beef patty that is unseasoned (Men’s Journal, 2017). By 2018, the Impossible Burger acquired Halal and Kosher certification (Cheddar, 2018).  

During the forecast period, 2018-2023, the global meat substitute market is anticipated to have a compound annual growth rate (CAGR) of 5.8% (Mordor Intelligence, 2018). There is an increasing demand for plant-based protein such as soy or pea protein since approximately 4^[a]% are vegans who avoid dairy foods and 13% of the millennial are vegetarians (Mordor Intelligence, 2018). This increasing trend for a meat alternative diet are based on various factors such as health awareness, ethical or religious views, sustainability issue, animal rights, and environmental impact. The plant-based product contains protein and no cholesterol, with texture and taste similar to meat, promotes the growth for meat alternative products in the market. (Mordor Intelligence, 2018). In plant-based products, innovation and meat-like behaviour are integrated for market growth.

With 39% of the global market share, Europe is the leading market for meat alternative products (Mordor Intelligence, 2018). Due to the significant support from Asia-Pacific population, there is a growth in income, a constant adaptation of processed foods and a rise in urbanization in the market. Asia-Pacific is a rapidly growing population accounting for 5.3% CAGR (Mordor Intelligence, 2018).

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(Mordor Intelligence, 2018)

From 2018-2023, the graph below depicts the projected global market value of meat alternatives. In 2018, the market value in the US is projected to be worth 4.63 billion USD of meat alternative products, and is estimated to reach 6.43 billion USD by 2023 (Statista, 2019).

Forecasted market value of meat substitutes worldwide from 2018 to 2023 (in billion USD)

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(Statista, 2019)

The competition levels are moderate in the meat substitute market. The market share includes the top global players along with other small and regional players globally. Based on the availability of increased number of substitutes, the market entry for new participants is moderately difficult (Mordor Intelligence, 2018). Successful business strategies for market development for new products include non-GMA products, innovative textures, flavours, organic products, and mergers & acquisitions with local players (Mordor Intelligence, 2018). Market entry is increasing with numerous players to get involved with the potential success of the market. A sophisticated distribution network provides an advantage to the manufacturers. The competitors of Impossible Foods include Beyond Meat, Amy’s Kitchen, Quorn Foods and Morningstar Farms, and Cauldron Foods. These competitors are competing in a “perfect competition” which is a market system characterized by many different buyers and sellers.

Scientists at Impossible Foods have found that a molecule called heme is essential in meat (The Justice, 2016). It’s the molecule that gives blood its signature red colour and is responsible for delivering oxygen to cells within the body. As a result, all living organisms contain heme, being especially abundant within animal muscle tissue (NCBI, 2012). However, this molecule is not exclusive to animals as it is also found in plants, specifically nitrogen-fixing plants and legumes (Science Alert, 2014). Despite plants and animals being vastly different, the heme found in both is identical to one another (Medical Biochemistry, 2018). This is unheard of within the food industry, specifically the plant-based food industry. A common complain among individuals eating meat substitutes are often related to texture and dryness, often found exclusively in meat. Thus, Impossible Food attempts to extract what they believe is the key component in meat products and apply it to plant-based foods.

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