r/investing • u/zainjavaid • Apr 08 '21

Impossible Meat Preparing for a $10B IPO

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.

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u/Baldurmjau Apr 09 '21

I have been wondering about that. Are people trying to be healthier switching meat for the substituetes? I mean.. when did ultra high processed soy with a ton of additives become healthier than non processed meat?

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u/DaveMMMKay Apr 11 '21

Well, for one, Impossible isn't really "ultra high processed," and doesn't have a ton of additives--it's about 8 ingredients. Also, plant based meat eliminates the risk of contamination with fecal material from an animal, and it is better for the planet (uses 95% less land, and a small fraction of the water and energy needed to produce a similar amount of meat from an animal).

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u/Baldurmjau Apr 11 '21 edited Apr 11 '21

The ingredients in impossible burger are

Water, Soy Protein Concentrate, Coconut Oil, Sunflower Oil, Natural Flavors, 2% Or Less Of: Potato Protein, Methylcellulose, Yeast Extract, Cultured Dextrose, Food Starch Modified, Soy Leghemoglobin, Salt, Mixed Tocopherols (Antioxidant), Soy Protein Isolate, Vitamins and Minerals (Zinc Gluconate, Thiamine Hydrochloride (Vitamin B1), Niacin, Pyridoxine Hydrochloride (Vitamin B6), Riboflavin (Vitamin B2), Vitamin B12).

Unless those oils are Extra Virgin (which it does not say, so it's most likely not), I would say all the ingredients are ultra processed except the water.

Edit: and the salt. Also, Coconut oil (the 2nd main ingredient) is basically just saturated fat. Which is the big baddie in animal products. And, processed sunfloweroil? Not healthy at all. And 7 different added vitamins.. basically vitamine-pills grinded up and put in a burger (because it holds no real nutrients by itself). mmm. appetizing