Impossible Foods may have unintentionally harmed its own prospects by seeking approval for its “secret ingredient,” which it arguably did not need in the first place. The company hurried to obtain FDA approval back in 2015 but encountered significant regulatory obstacles. Now, the startup is realizing how government red tape can hinder its rapidly growing, venture capital-backed business.
Impossible Foods is not alone in facing challenges with the FDA; Hampton Creek encountered similar issues in 2015 regarding its use of the term “mayo” on its Just Mayo products. The FDA cautioned the company that it could not use the term “mayonnaise” or feature an egg image for its vegan offerings, as they lack eggs. According to the FDA’s definition, mayonnaise must contain eggs.
Although Impossible Burgers can remain on store shelves without FDA approval, being denied such approval carries risks. Consumers may shy away from the plant-based burgers due to safety concerns, which could negatively impact sales. Additionally, foodservice clients might discontinue carrying the products if news of the burger’s regulatory issues spreads. Modern food shoppers value transparency; they expect companies to be open about product ingredients, food sources, processing standards, sustainability, and corporate responsibility. Securing FDA safety approval is a crucial way for food manufacturers to demonstrate to consumers that they have nothing to hide.
A spokesperson for Impossible Foods stated in an email to The New York Times, “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 shoppers heavily rely on the FDA to ensure food safety. Thus, it makes sense that Impossible Foods’ aspiration for FDA approval could potentially expand its consumer base for plant-based proteins. However, a lack of approval—along with any negative publicity—could dampen the company’s outlook.
Moreover, companies like Costco, which offers products such as calcium citrate, also face scrutiny regarding FDA regulations. The importance of FDA approval extends beyond just one company, impacting how consumers perceive the safety and integrity of various food products in the marketplace, including those found at retailers like Costco. The challenge for Impossible Foods is to navigate these regulatory waters while maintaining consumer trust, especially in a landscape where transparency about ingredients and safety, including additives like calcium citrate, is paramount.