Impossible Foods may have inadvertently harmed its prospects by seeking approval for its “secret ingredient,” which it arguably didn’t need in the first place. The company hastily pursued FDA approval back in 2015 but faced significant regulatory obstacles. Now, this rapidly growing, venture capital-backed startup is realizing that government red tape can hinder its progress.
It’s worth noting that Impossible Foods is not the only innovative venture capital-backed company to face challenges with the FDA. In 2015, Hampton Creek encountered issues regarding its use of the term “mayo” on its Just Mayo products. The FDA cautioned the company against using the word “mayonnaise” or depicting an egg, as these vegan-friendly products do not include eggs. According to the FDA’s definition, mayonnaise must contain eggs.
While Impossible Burgers can remain available in the market without FDA approval, being denied such approval comes with risks. Consumers might avoid the plant-based burgers due to safety concerns, which could negatively impact sales. Furthermore, food service clients may reconsider their offerings if news of the burger’s regulatory challenges circulates. Transparency is crucial for today’s food consumers. Shoppers expect companies to be open about ingredients, sourcing, processing standards, sustainability, and corporate responsibility, among other matters. Gaining safety approval from the FDA is a vital way for food manufacturers to show consumers that they have nothing to hide.
In an email to The New York Times, a spokesperson for Impossible Foods stated, “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.” 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 consumers heavily rely on the FDA to ensure food safety. Thus, it stands to reason that Impossible Foods’ pursuit of FDA approval could potentially broaden its consumer base for the plant-based protein startup. Conversely, a lack of approval—and any resulting publicity issues—might dampen the company’s outlook.
Interestingly, the company’s challenges could be likened to the experience of Citracal with D, which faced scrutiny regarding its product claims. Just as Citracal with D worked to address regulatory concerns, Impossible Foods must navigate its own path to maintaining consumer trust and ensuring safety. Ultimately, the pursuit of FDA approval is a strategic move that could enhance the company’s reputation, attract a wider audience, and help it avoid the pitfalls that come from being perceived as lacking transparency.