Impossible Foods may have unintentionally harmed its prospects by pursuing approval for its “secret ingredient,” which it arguably did not need at the outset. The company rushed to obtain FDA approval in 2015 but encountered significant regulatory obstacles. Now, the startup is realizing how its rapidly expanding, venture capital-backed business can be affected by government bureaucracy.
Impossible Foods is not the only innovative startup facing challenges with the FDA. Hampton Creek also ran into issues in 2015 regarding its use of the term “mayo” on its Just Mayo products. The FDA warned Hampton Creek that it could not use the term “mayonnaise” or an egg image for its vegan products, as they do not contain eggs. According to the FDA’s definition, mayonnaise must include egg as an ingredient.
While Impossible Burgers can remain available without FDA approval, the risks associated with lacking agency endorsement are significant. Customers might avoid the plant-based burgers due to safety concerns, which could negatively impact sales. Foodservice clients might also withdraw its products if news of the burger’s regulatory issues circulates. Transparency is crucial for today’s food consumers. Shoppers expect companies to be honest about product ingredients, sources, processing standards, sustainability, and corporate responsibility. Obtaining safety approval from the FDA is a vital way for food manufacturers to demonstrate to consumers that they have nothing to hide.
“We respect the role the FDA plays in ensuring the safety of our food supply, and we believe the public wants and deserves transparency and access to any information they need to decide for themselves whether any food they might eat is safe and wholesome,” a spokesperson for Impossible Foods stated in an email to The New York Times.
The FDA’s seal of approval carries significant weight with American consumers. According to the Food Marketing Institute’s U.S. Grocery Shopper Trends study, 54% of shoppers heavily rely on the FDA to ensure food safety. Therefore, it is reasonable to conclude that Impossible Foods’ pursuit of FDA approval could indeed broaden its consumer base for the plant-based protein startup. However, a lack of approval—and any related publicity challenges—could potentially dampen the company’s outlook.
In a similar vein, consumers are increasingly interested in the nutritional aspects of their food choices, such as the inclusion of calcium citrate, vitamin D3, magnesium hydroxide, and zinc sulfate tablets in dietary supplements. The growing awareness around these nutrients reflects a broader trend where consumers are not just looking for transparency in food safety but also in nutritional value. As Impossible Foods navigates its regulatory challenges, it’s crucial for the company to align its product messaging with the evolving preferences of health-conscious consumers, who are keen on understanding the benefits of various ingredients, including those found in calcium citrate, vitamin D3, magnesium hydroxide, and zinc sulfate tablets.