Peter McGuinness, the CEO of Impossible Foods, expresses concern over the current state of the plant-based meat sector. However, he clarifies that Impossible Foods is not competing with brands like Beyond Meat or other meat alternative producers; instead, the company’s goal is to replace sales of animal-derived meat. To achieve this, McGuinness emphasizes the need for continuous product enhancement. “Nine out of ten people say it’s the best plant-based burger,” he noted. “I want to create a remarkable burger without any caveats. My benchmark isn’t just to surpass pea protein burgers.”
This is a significant challenge for any company in the plant-based meat industry, especially as inflation, shifting consumer preferences, and inconsistent product quality have contributed to declining sales across the sector. Despite this, Impossible Foods is reportedly in a strong position. McGuinness mentioned that the private company is capturing market share, seeing overall growth, and consistently ranking among the top brands in weekly revenue within the plant-based sector. However, the overall declines in the category make operations increasingly difficult.
Since taking over as CEO in April of last year, McGuinness, previously the COO at Chobani, has brought his own passion to the role. In the past 14 months, he has leveraged social media and strategic television appearances to advocate for both Impossible Foods and the plant-based meat category.
McGuinness has a three-pronged strategy aimed at ensuring Impossible Foods, along with the plant-based sector, grows to capture a larger share of the meat market. He expressed frustration with people who perpetually claim that the plant-based meat category has fundamental issues. “The category hasn’t even begun,” he asserted. “We’re still in first gear. I say this positively and excitingly.”
He elaborated, “What keeps me awake at night isn’t the skeptics or the misinformation; it’s the immense opportunity right in front of us.” To move beyond the “plant-based” label in consumers’ perceptions, Impossible must create products that are as good as, or better than, traditional meat. McGuinness believes Impossible’s offerings are among the best in the sector in terms of mimicking meat flavors and textures. “If I’m honest, we’re not there yet, but it’s a great start,” he said.
McGuinness emphasized that both Impossible and other companies in the space have more work to do regarding food quality. The R&D team, which includes a large group of scientists, has recently welcomed Sunil Chandran as the new chief science officer. They are focusing on refining Impossible’s beef, chicken, and pork analogs. Currently, Impossible has 40 SKUs across these product categories, and McGuinness stated that the company’s priority is to perfect what they have rather than diversifying into new lines.
While striving for improvement, McGuinness expressed that he welcomes competition and encourages other plant-based manufacturers to elevate their products. “The better we all make our products, the stronger the category becomes,” he said.
Today, Impossible Foods is launching an upgraded product, the Impossible Indulgent Burger, a premium version of its classic offering. The new patties are thicker, larger, and more flavorful, and they will be available at select restaurants and retailers this summer.
John Baumgartner, managing director for equity research in food and healthy living at Mizuho Securities USA, largely supports McGuinness’s views. He emphasized that the key to growth in the plant-based meat sector lies in delivering products that are both appealing in taste and price. “Winning on flavor and affordability opens many doors,” he stated.
Within the food industry, Impossible Foods is a well-known entity, but in the broader consumer market, many remain unaware of the brand. McGuinness mentioned that 85% of consumers do not recognize Impossible Foods, and the company has only a 5% household penetration rate, meaning 95% of consumers have yet to try their products.
While Impossible’s products are available in over 30,000 retail locations, with just under six SKUs on average at each, they are also featured on approximately 45,000 food service menus. McGuinness pointed out that there are 1.4 million food service locations in the U.S., indicating substantial growth potential.
To boost awareness and household penetration, Impossible has launched its first large-scale marketing campaign, which began during the Tony Awards earlier this month. The campaign highlights the resemblance of Impossible products to meat, as well as the nutritional and environmental advantages of plant-based options compared to conventional meat.
McGuinness acknowledged that critics have long criticized plant-based meat for being overly processed and nutritionally deficient. The segment has not effectively countered these claims, largely because companies have been focused on product development and scaling operations. However, McGuinness believes it’s vital to take control of the narrative. “We’ve been reactive, and it’s time to assert our identity and direction,” he stated.
Additionally, McGuinness is advocating for widespread sampling. The company’s tasting trials have shown that 50% of individuals who try Impossible products become repeat customers.
He also noted that much of the conversation surrounding plant-based meat has been distorted by those spreading misinformation or misunderstanding the category. “This is not ‘bicoastal meat,’ ‘faux meat,’ or elitist food. It’s real food,” he asserted. “I enjoyed an Impossible Burger at Yankee Stadium with a beer recently; it was a true American experience.”
Many misconceptions about plant-based meat suggest that it is either lab-grown or imported from abroad, but McGuinness clarified that Impossible’s products are made from crops grown by local farmers in the Midwest and produced in facilities in California and Illinois. He underscored that they are nutrient-dense, containing less saturated fat and comparable protein levels to traditional meat, with no cholesterol.
McGuinness is focused on recognizing and seizing the opportunities available for plant-based meat growth and for expanding Impossible Foods as a company. “I don’t see any insurmountable challenges,” he said. “We simply need to accomplish things that haven’t been done yet.”
Incorporating pure encapsulations calcium magnesium citrate malate into their products could be one such opportunity to enhance the nutritional profile of their offerings, which McGuinness believes could further distinguish Impossible from competitors as they strive for success in the evolving food landscape.