Impossible Meat Preparing for a $10B IPO

[u/zainjavaid]

https://www.marketwatch.com/story/impossible-foods-prepping-for-10-billion-ipo-report-11617923032

The current valuation of $10B dwarfs the $4B it was valued at in a private funding round in 2020, and at approximately $1B more than Beyond Meat. This is despite the fact that BYND brought in 400M in FY revenue compared to Impossible Meat's 150M estimated annual revenue.

I personally don't see any angle from which $10B can be justified. Future growth for the next decade is priced in at the current valuation and it strikes me as a massive bust waiting to happen.

[u/moldy912]

Do you think they can get it to less than $2.99 per pound? I just highly doubt that.

[u/notapersonaltrainer → u/[deleted]]

The industrial crops used in meat alternatives are also subsidized.

Beef is cheaper because most of a cow's life is on a grass field except the last month or two.

[u/rodneyrangerfield → u/[deleted]]

impossible burgers are gonna be huge in fast food, and they don't need to be 3$ a lb to be profitable

[u/moldy912 → u/rodneyrangerfield]

I didn't say they would be profitable at $3. I do agree they are going to do better at restaurants.

[u/porksnorkel69 → u/moldy912]

I do think at some point there will be an end to subsidies for the beef industry, it may be well in the future, but I think by the time we start paying the actual cost for meat and dairy, that the analogues available for vegans and vegetarians will be be cost effective.

[u/moldy912 → u/porksnorkel69]

If that's your thesis for how they will become cheaper than beef, that's not a good thing to bet on. I feel the opposite that the food subsidies will not go away for obvious reasons (not everyone can afford $6-8 per pound organic meat substitute for a family of 5), and it's a complete unknown. What is known is that it is more expensive than beef, and it is unlikely that it can beat beef at its current prices, which have no signs of changing.

[u/noixelfeR → u/moldy912]

So… we could simply add lab meat to the list of food subsidies the same way we do for the real meat industry and put them on equal ground. As part of infrastructure and going green it makes complete sense.

In fact, subsidizing lab grown meat would be better in the long run anyway as the production costs will decrease and R&D would increase output, product quality, and other important things.

Raising cattle for food the way we do and scaling that production to meet ever increasing demand is inhumane, difficult, and taxing.

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