Rumor has it that impossible foods will go public with an initial public offering of $ 10 billion
Plant-based startup Impossible Foods is considering filing an IPO with a value of up to $ 10 billion within the next 12 months. Reuters Reports. Sources familiar with the matter said that instead of going public, Impossible Foods is also considering a merger with a Special Purpose Acquisition Company (SPAC), a Shell company that is raising funds through an IPO to acquire a private company – an alternative Opportunity for Impossible Foods to become a publicly traded company with the benefit of reduced government oversight. According to Reuters, Impossible Foods spokesman, declined to comment on the matter, which is still under discussion.
Impossible Foods was founded in 2011 in Redwood City, California, and launched its plant-based Impossible burger in select upscale restaurants in 2016. Since then, the brand has grown explosively. On the foodservice side, Impossible Foods products are now available from fast food giants like Burger King, Starbucks and Disney-operated properties, among others. The brand made its retail debut in around 150 stores in 2019 and expanded its retail presence 100-fold to 20,000 stores, including Walmart, Trader Joe’s, and Costco, as part of the COVID-19 pandemic. Impossible Foods has made several price cuts in both retail and wholesale to better compete with animal meat.
Over the past decade, Impossible Foods has been backed by significant investment capital raised to fund its mission to eliminate animal products. In 2019, the company raised $ 300 million from a large group of investors including celebrities Serena Williams, Jay-Z, and Katy Perry. At the start of the COVID-19 pandemic in March 2020 – when investor confidence in other sectors was low – Impossible Foods raised $ 500 million in additional capital, bringing total funding to $ 1.3 billion.
This month Impossible Foods launches its first national television advertising campaign, “We Are Meat,” with five commercials aimed at meat eaters with a bold message that challenges the idea that meat can only come from slaughtered animals. The company’s overall goal is to replace all feed animals with viable plant-based alternatives for the benefit of people, animals and the planet by 2035.
Vegan companies go public
If Impossible Foods does go public, it will join a growing number of publicly traded plant-based companies. In May 2019, Beyond Meat made history when it went public as the first vegan meat brand. On the first day of trading, it saw share prices rise up to 163 percent. This made Beyond Meat the best performing stock on the first day of the year. In Canada, vegan company The Very Good Food Company – the parent company of vegan meat manufacturer The Very Good Butchers – had similar successes when it began trading on the Canadian Securities Exchange (CSE) in June 2020. The shares of the Canadian vegan company rose 800 percent in the first few days of trading.
In addition to Impossible Foods, other plant-based companies are considering going public. In January 2021, Swedish importer Oatly hired Morgan Stanely, JPMorgan Chase and Credit Suisse to manage its IPO, which is expected to continue this year and raise up to $ 1 billion for the vegan oat milk brand. Eat Just – maker of mung bean-based JUST Egg – has been considering an IPO as a funding event since 2019. While the startup’s CEO Josh Tetrick initially believed the COVID-19 pandemic would thwart plans to go public, the opposite happened as consumer habits and the company’s rapid growth brought Eat Just closer to becoming a publicly traded company. Currently, Tetrick is waiting for Eat Just to reach operational profitability by the end of 2021. From then on, he will “really start thinking about going public”.