THE IMPOSSIBLE BURGER - CONSUMER INSIGHTS - MBIE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE IMPOSSIBLE BURGER CONSUMER INSIGHTS
While every effort has been made
to ensure the information in this
publication is accurate, the Ministry
for Primary Industries does not accept
any responsibility or liability for error
of fact, omission, interpretation or
opinion that may be present, nor for the
consequences of any decision based on
this information.
2
Executive
Our survey of residents of
California and analysis of social
media and online data found:
Summary
Consumers are most likely to be in
their 30s or 40s, with access to higher
disposable income, living in a large
city with ready access to the product.
Of those 30%
who tried it will eat it regularly
did not
What is the Impossible Burger? 20% like it
The Impossible Burger, developed by
Impossible Foods is a patty developed to People who have tried the
replicate the taste, texture and smell of beef. Impossible Burger like it
most for its environmental
The burger made significant steps to meet this credentials.
goal with the development of heme, a product
designed to replicate the properties of blood and
make the product have a meat like taste. Most consumers (95%)
have never heard of the
This product is at the
Impossible Burger and less
forefront of companies than 2% of respondents
that are innovating and have tried the burger.
significantly improving meat
replacement products, yet
Beef replacement companies consumer sentiment shows that
further innovation is required Low tolerances in the cooking
are receiving significant to develop a product that is process mean the final
a large threat to the sector
funding in the medium term.
product quality can vary.
Two companies Beyond Meat and
Impossible Foods displayed large capital Many vegan and
flows of US$95.9 million and US$273.5 vegetarians do not like the
million respectively. These products have product as they do not want
the potential to cause a level of disruption meat substitutes.
to the US beef market. The New Zealand
beef sector adds $2.9 billion of value to
the New Zealand economy. 44% of New Impossible Foods are grappling with
Zealand’s beef exports went to the US. perception around GMO status which is
important to maintain the environmental
credentials of the product.
3
3 Executive
Summary
TS
TEN 6 Market
Research
11 Product
Overview
CON
16 Consumer
Chatter
23 Consumer
Survey
THE
IMPOSSIBLE
BURGER
CONSUMER INSIGHTS
4
Identification of dynamic OUR
AC
markets: The US was
TIO
APPROACH
selected due to the size
and importance to the NZ
NS
1. economy, significant funding
>>
to new plant protein products
and strong sources of
research data.
Identifying
Dynamic and Open
OB
JE
Markets Comparing retail
CT
IV
product attributes:
E>
Attributes of the
Impossible Burger were
>
2.
assessed by online
sentiments on social
media. Understanding consumers:
Identifying the most A survey of consumers was
engaged and relevant undertaken to quantify their
markets will inform preferences towards a new plant
our decision on what New Product protein product; the Impossible
Implications:
Quantifications of
countries to investigate Analysis Burger. These responses were
the attributes of the
and research. triangulated against internet search
Impossible Burger
interest.
3.
were put forward to
help inform strategic
considerations in the
Understanding primary sectors with
Consumer regards to plant protein.
Understanding
consumer preferences
and demographics will
Preferences 4. Implications and
determine if there are
market gaps forming in Next Steps
key market segments.
Analysing the disruption of
new product developments
in selected countries identify
the high performing products
and ‘second movers’ for Having an in-depth understanding of
both current and future plant alternative protein products will inform
protein products. future decisions on New Zealand’s
production and export portfolio, and
where New Zealand needs to position
itself to be best placed in markets.
5
THE
IMPOSSIBLE
BURGER
Market Research
6
US BEEF MARKET New Zealand’s reliance
IS CRITICAL TO on its 5 largest meat
export partners
NEW ZEALAND’S 28%
26%
WELLBEING
25%
25%
23%
22% 22%
18% 18%
A snapshot of the US 17% 17%
The United States is the 3rd largest importer
of meat in the world, Importing from Canada,
Australia, New Zealand and Mexico. These countries 11% 11% 10%
make up 84% of its total imports, at 30%, 26%, 14%, 10%
9%
and 14% respectively. 8%
7%
6% 5%
Downward changes in US meat consumption trends 5% 5%
7%
pose a significant risk due to the heavy reliance the
US places on New Zealand for its beef. 68% of New 5%
5%
Zealand’s 2017 meat and wool exports to the US 16% 4% 4% 4% 4%
were in mince beef. Local 30%
Canada 2012 2013 2014 2015 2016 2017
Of total US Meat 14%
14% imports are from
New Zealand
Mexico
US Meat
Imports
United States Germany
China Netherlands
New Zealand’s increasing reliance on China and 14%
New Zealand United Kingdom
the US poses a risk. If both China and the United 26%
States reduced their meat imports by just 1% it Australia
would reduce global meat imports by NZ$134
million and NZ$113 million. This would reduce New
Zealand’s exports by NZ$29 million dollars, which
is NZ$9 million more than the 2017 operating profit
of Alliance Meats, one of the countries largest meat
processors.
7
A CONCENTRATION OF Total funding received by companies
researched by MPI at Feb 2018
CAPITAL IS FLOWING 350
TO INNOVATIVE 300 Impossible Foods
Beyond Meat
Other Companies
COMPANIES SEEKING
250
Funding in USD (millions)
TO REPLACE BEEF
200
150
Beyond Meat and Impossible Foods seek to
disrupt the US beef sector
100
Two companies, Impossible Foods and Beyond Meat, are
attracting significant capital for investment when compared
to other global companies attempting to achieve plant based
replacement products. 50
Both these products are using this capital to fund innovative
products and processes, that can replace traditional beef. These
innovations require significant capital but also promise the 0
greatest prospect of wide spread replication of beef in the near Companies
term.
Due to their significant funding and the relevance of the market
these companies operate in they were analysed further.
8
BEYOND MEAT Funding
Round
Amount Raised
(USD)
Notable
Investors
Primary series
(A – C)
$22 Million
Founders Founded Closed Loop
Ethan Brown 2009 Secondary series
$65.4 Million Capital
(D – F)
Bill Gates
Convertible Note $8.4 Million General Mills
Employees Products:
51 – 100 Beyond Burger (Non-
GMO No Soy or Gluten),
Tyson Foods
Beast Burger (Non-GMO Total $95.8 Million
Pea Protein), Beyond
Chicken Strips (Non-GMO
Soy and Pea Protein),
Beyond Beef Crumble See page 33 for a full
(Non-GMO Pea Protein) breakdown of funding
amounts, timelines
and investor profiles.
Funding data obtained
October 2017.
:
Retail Supermarkets, currently Partnering with large meat The ultimate aim of the The company has taken a
gy
:
:
gy
gy
expanding to food services. processors (e.g. Tyson Foods) company is to be on the menu traditional marketing approach,
te
te
tra
te
and distributors (e.g. Sysco) of major fast-food chains targeting those consumers
ra
ra
to leverage supply chain and (e.g. McDonald’s and Burger looking to make healthier
tS
St
St
market experience to expand King) in five years. With its choices, and giving them an
en
m
rm
market share. new distribution partnerships easy and affordable pathway.
m
er
the supply chain challenges
-te
t:
ge
t-t
ke
of meeting food-service
ng
ga
or
ar
requirements may be easier.
Sh
En
Lo
M
9
IMPOSSIBLE Funding
Round
Amount Raised
(USD)
Notable
Investors
FOODS Primary series
(A – C)
$74 Million
Khosla Ventures
Secondary series Horizons Ventures
(D – F)
$124.5 Million
Founders Founded
Bill Gates
Patrick O. Brown 2011 Convertible Note $75 Million Li Ka-shing
Temasek Holdings
Total $273.5+ Million
Employees Products:
101 – 250 Impossible Burger
(Beef-like patty)
See page 29 for a full
breakdown of funding
amounts, timelines
and investor profiles.
Funding data obtained
October 2017.
:
Restaurant and Burger chains Expand presence in burger Develop expanded range of meat Aggressive focus on getting
gy
:
:
gy
gy
across the US chains across the US, targeting and dairy products, continue news articles printed about the
te
te
tra
te
higher-end chains. A new factory targeting restaurants and company and product. Targets
ra
ra
has begun production of up to food-service. With prototypes scientifically literate, tech savvy,
tS
St
St
one million pounds of burger developed Impossible Foods is and environmental ethical
en
m
rm
product per month. No plans to considering which product to segments.
m
er
sell burgers in supermarkets or commercialise next. Chicken
-te
t:
ge
t-t
ke
directly to consumers. is a likely choice as it is the
ng
ga
or
ar
most consumed protein in the
Sh
En
Lo
M
US and therefore the largest
market.
10THE
IMPOSSIBLE
BURGER
Product Overview
11IMPOSSIBLE FOODS HAS BEEN
Product leghaemoglobin (heme)
is developed and continually
1.
refined over this time and
continues to be refined.
SUCCESSFUL IN TURNING CAPITAL 2.
Initial funding rounds to continue
research and development of
plant based products that taste
INTO A COMMERCIAL PRODUCT like meat.
Key milestones for Impossible Foods Reportedly turned down a
3. US$300 million offer to purchase
the company.
Raised over US$100 million
4. to help fund the company as it
Total Funding begins to release more product
into market.
Received By
Impossible Foods
Impossible Foods released the
300 Impossible Burger to market via
Impossible 5.
7. the Momofuku Nishi restaurant in
Foods have New York.
demonstrated that 250
total funding received (million USD)
as each funding
round has been 200 5. 6. Received US$75 million in
received that they funding after meeting key
have continued 6. milestone of attaining patents for
150 the use of heme in plant based
on developing
the product and meat.
delivering results. 100 1.
3. 4
50 Begin production of burgers in
2. 7.
large scale plant in Oakland, CA.
0
Oct-11
Apr-12
Oct-12
Apr-13
Oct-13
Apr-14
Oct-14
Apr-15
Oct-15
Apr-16
Oct-16
Apr-17
Oct-17
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
Jul-11
Jul-12
Jul-13
Jul-14
Jul-15
Jul-16
Jul-17
12ITS FLAGSHIP PRODUCT IS
THE IMPOSSIBLE BURGER
The Impossible Burger
is one of the new
Launched in 2011.
generation products
The product is sold
that attempts to
directly to selected
overcome the consumer
restaurants in order
taste and experience
to control consumer
barrier to conventional
experience.
meat substitutes, such
as tofu and soy, which
have not been able to
convert large numbers
away from eating meat. Making plants bleed, the
The product targeted role of heme:
at consumers who
The patty is made are looking for Legoglobin is a key component of what
from more ethical and makes meat have a slightly metallic taste,
• Wheat protein environmentally smell and bleeding texture. Without this
friendly products component in a burger it will fail to draw
• Coconut oil yet are not willing the comparisons to a meat burger.
• Potato protein to compromise on
attributes such as Fortunately, this property is also
• Heme found in plants such as soy, but in
the taste and texture
of meat. very low quantities to be viable.
Impossible Foods use a fermentation
process where yeast are imprinted with
the gene code for soy leghaemoglobin,
which they then produce in large
Growing convenience quantities when fed sugar and minerals.
as reach grows to
This product called heme is what gives
95 Locations* $9-18 Price* the meat flavour and smell that the
product is known for.
10 States* *As at Oct, 2017
13Regular Burger Impossible Burger
THE IMPOSSIBLE
VS
Requirements Requirements
34%
BURGER DELIVERS 7
Land (m2)
Saving
0.4 6.6m2 liked environmental
credentials
ON MANY
Those consumers who
would buy it again say they
would do so primarily for it’s
Water (L) environmental and health
credentials.
ENVIRONMENTAL
Saving
200 50
150L
72%
CREDENTIALS 0.3
Energy (kwh)
0.04
Saving
0.26 kwh
Consumers aged
between 15-20 are
willing to pay more for
products and services
that come from
companies committed
The Impossible Burger has made significant
developments in reducing the environmental footprint of a
to positive social and
burger. environmental impact
(Nielsen, 2015).
The typical burger requires an intensive farming of
livestock for meat, livestock requires natural land, water,
REGULAR
energy, and results in contaminated waterways, leached
soil, and methane emissions.
These negative environmental impacts have been
increasingly under the spotlight with calls for change in
the industry.
As the Impossible Burger does not use an animal product
as its primary ingredient, the environmental footprint is
significantly less than that of an animal based product.
14Our research has shown
FOOD CHANNELS ARE that the Impossible
Burgers quality and
taste is sensitive to the
skill of the cook, with an
PREPARING THE BURGER AS Thick
Burger
appearance that can vary
significantly.
A HIGH QUALITY PRODUCT Thin
Burger
Impossible Foods controls
the quality by choosing
restaurants that can
prepare the burger. This
results in a high standard
Patty presentation: Burger style: product delivered onto the
consumers plate.
The Impossible Burger was originally The burgers are usually made in a classic
made as a thick patty, but recently more style with lettuce, tomato, cheese, pickles
outlets serve it as a thin patty, most likely to and sauce. Some locations allow the
simplify the cooking process and improve Impossible Burger patty to be substituted in
quality control. any of their regular burgers. As the company grows
the number of restaurants
Restaurants: Impossible Foods sells
2. to will increase. This will
3.
Restaurants selling the Impossible constrain their current
Burger focus on high-quality ingredients model to ensure quality.
and sustainable values. Most of the
locations are operated by burger chains
such as Umami and BareBurger. There
are also several iconic locations such as
Momofuku in New York.
1.
15THE
IMPOSSIBLE
BURGER
Consumer ResearcH
16MEASURING CONSUMER The media used in this report included
ENGAGEMENT
Online newspaper
outlets
Social media platforms were observed to see who
was talking about the Impossible Burger. After a large
enough sample was collected we began comparing
Consumer what people were saying, what restaurants they had
Chatter been to and how they felt about the product.
The survey was conducted online, with 10,000 initial
participants, 500 of which met criteria for further
questioning. Among the questions, people were asked
about their reasons for purchasing the Impossible
Burger and their thoughts on the product.
This report wanted to explore what people were
saying about the Impossible Burger on social media
across the US. Gathering data on this helped in
understanding how people were receiving the product
and the experience they had while eating the burger.
This insight allowed conclusions to be drawn on the
Consumer success of the Impossible Burger.
Survey The report used a survey to ask some in-depth
questions from people who had tried the Impossible
Burger. Doing this allowed us to dive deeper into
people’s motivations for trying the plant based burger.
17CRITICAL RECEPTION OF THE
BURGER HAS BEEN MIXED
Chatter
Some of the reviewers had negative
experiences when the burger was not cooked
Two separate
properly. This clearly has a major effect reviews from
Reception on taste, texture, presentation, and overall
NYC
experience. The example here shows one
Opinions of online reviewer who had a very bad experience with
reviewers ranges from very one of the newer outlets in Houston TX. The
positive to very negative. reviewer commented that:
With the traditional fixings
and an extremely pillowy
A number of paid reviews gave
house-made potato bun from
glowing reports of how the
Nishi, I would have never
product was indistinguishable …their texture was so soft and guessed that this wasn’t
from ground beef. squishy that there was none of animal meat.
the tension between juicy interior
and snappy crust so vital to the
burger experience. Instead, the
patties mooshed right out of the
Smaller publications and
sandwich margins, falling apart
bloggers indicate that the
into a dispirited heap. They didn’t I’m just looking at the
product was not perfect.
“bleed”; they squashed. amazing pictures Jane took,
and, honestly, they make the
burger look a lot better than
Reviewers were more it tasted. It’s very photogenic!
impressed by the
appearance than the taste.
18SOCIAL MEDIA COMMENTS
ARE GENERALLY POSITIVE Less frequently, but
Chatter The majority of online chatter stems from importantly consumers
people posting in three categories: sometimes offer direct
feedback such as:
Posting about trying Posting about Posting articles
the burger wanting to try the and links about
burger the science and
innovation
1. 2. 3.
Posts from
people trying
the burger were
generic, and
often included
a photo of the
burger with
a positive
comment.
19AND CONSUMER CHATTER IS STEADY
Online chatter relating to the Daily Chatter Levels An article from Boston Magazine, Heme in the Impossible Burger is
generated several hundred comments of
Impossible Burger has been fairly angry debate around the use of GMOs, genetically engineered and could make it
steady, with spikes relating to major organics and other such topics, despite the less appealing to some consumers.
or controversial events. Over 30 original article being brief and neutral.
days in September and October The comments caused a dip in the
2017, there was one major spike
800 otherwise very positive opinion towards
15%
16%
the Impossible Burger, despite being
resulting from multiple news outlets 700 largely unrelated to the Impossible Burger Don’t care at all
announcing the release of the itself. Overall, the sentiment of the product Care a great deal
600 remains extremely high. This is due to the
Impossible Burger in Boston, Detroit highly engaged Public Relations efforts of
and Chicago restaurants. 500 Impossible Foods and a willingness to front
foot contentious issues that related to the
400 product such as the use of GMO’s.
US consumer
300 sentiment for
200
GMO foods.
100
31%
Don’t care
0
to much 38%
Care some
12-Sep
14-Sep
16-Sep
18-Sep
20-Sep
22-Sep
24-Sep
26-Sep
28-Sep
30-Sep
2-Oct
4-Oct
6-Oct
8-Oct
New generation products often have additives
to maintain colour, shelf-life and quality, yet
consumers prefer natural ingredients.
of products
released in
20% 2015 claim no
additives or
preservatives
(Mintel, 2016).
20
ChatterIMPOSSIBLE FOODS WORKS
HARD TO MITIGATE GMO AND
FOOD SAFETY CONCERNS
Following difficulty with the FDA and
a critical New York Times article,
Impossible Foods has attracted
criticism from environmentalists
and animal rights activists about
the transparency of its scientific
development. The company is
actively working to combat any
perception shifts, but has not been
able to address the concerns raised
by the FDA as yet.
21
ChatterIT IS STILL A NICHE PRODUCT
RELATIVE TO ESTABLISHED PLAYERS 1in1900
Ratio of restaurants stocking
the Impossible Burger to other
restaurants in California (2017).
Impossible Burger locations
Relative to the populations where the
Impossible Burger is available the
availability of the product is still limited. Survey
It took over 10,000
California was assessed as a state to study Californians in our survey
further as it has a large affluent population, request to find a sample of
with many locations of both Impossible 500 people who have heard
Burger and traditional burger outlets and of the Impossible Burger.
access to good data sources to conduct Of those who knew of the
research. burger only 31 percent had 2 2
tried it. The survey looked at 8 12
consumer response to the
16 Impossible Burger and the 4 6
Adoption in California will require time 1 reasons behind purchasing it.
1
There were over 69,000 food and drink restaurants in
California in 2015. In 2017 the Impossible Burger was
stocked in only 36 Californian restaurants. 20
This indicates that despite rapidly increasing the rate of
restaurants stocking the Impossible Burger, there are still
far more venues offering traditional products.
4
4
7 7
22
SurveySURVEY RESULTS Q1
Do you know what the
Impossible Burger is?
INDICATES THE PRODUCT Don’t know
Yes
No
5%
23%
71%
HAS SHALLOW MARKET Q2
Have you tried the
PENETRATION Yes
No
Impossible Burger?
31%
63%
Don’t know 6%
This chart shows Survey
respondents who
answered yes to Relative to the populations where the Impossible
question 1.
Burger is available the availability of the product is
still limited.
• In order to get 500 respondents who had
heard of Impossible Burger we had to survey
more than 10,000 Californians.
• Among respondents who have heard of
Impossible Burger, 31% have tried the
product.
• This suggests that people who are interested
in the product had gone out of their way to
try it.
• All participants from Los Angeles and San
Francisco had heard of the Impossible
Burger, indicating that residents of cities
where the burger is available are more aware
of its existence.
• Around 40% of San Francisco respondents
had tried it.
23
SurveyTHE AMOUNT OF
PEOPLE WHO WOULD
Q3
Do you think you
will eat Impossible
Burgers regularly?
EAT IT AGAIN IS Definitely
13%
29%
MIXED 11%
19%
Probably Not 28%
Survey
This chart shows respondents
who answered yes to question 2, Among consumers who had tried the
indicating they have actually burger, there was a fairly even split between
tried the burger
those who expect it to become a regular
feature of their diet (29%) and those who do
not (28%).
Comparing between Los Angeles and San
Francisco indicates that LA consumers were
considerably more likely to eat the burger
regularly.
Overall men are around 30% more likely to
say they would eat the burger regularly.
24
SurveyAND APPEALS TO
CONSUMERS WITH
Q4
What do you like most
about Impossible
Burgers?
HEALTH AND WELLNESS I don’t like them
They’re new & exciting 15%
19%
CONCERNS They’re healthy
They’re good for the environment
28%
34%
Probably Not 4%
Survey
This chart shows respondents
who answered yes to question 2, For the consumers who had tried the burger, the most
indicating they have actually tried liked feature was that the Impossible Burger was good
the burger
for the environment, followed by its health credentials.
Around one fifth of respondents who tried the burger did
not like it.
Between Los Angeles and San Francisco, consumers in
Los Angeles were more likely to cite health benefits as a
reason to like the burger.
Overall the differences between Los Angeles and San
Francisco indicate that there are some fundamental
differences between consumers in these areas. San
Francisco consumers are more likely to have tried the
burger out of curiosity and don’t see it as a replacement
for meat in their diet. Alternatively, Los Angeles
consumers are more inclined to see it as a health
product that should be incorporated into their diet.
25
SurveyTHE
IMPOSSIBLE
BURGER
Appendices
26COMPANY PROFILES:
IMPOSSIBLE FOODS
Product Pipeline: Engagement Strategy:
Developing a chicken product Aggressive focus on getting news articles printed about the
and cheese substitute. They have company and product. Hold workshops and demos for large
developed prototypes of steak, groups of journalists to get their message across. Especially
chicken, fish, and cheese. targeting scientifically literate, tech savvy, environmental and
ethical segments. Product-level promotion is picked up by the
chains selling product and is largely independent of Impossible
Foods.
Founders Founded
Patrick O. Brown 2011 Market:
Restaurant and Burger
chains across the US.
Employees Products:
101 – 250 Impossible Burger
(Beef-like patty)
Short-term Strategy: Long-term Strategy:
Expand presence in burger chains Develop expanded range of meat
across the US, mainly targeting and dairy products, continue targeting
higher-end chains selling burgers restaurants and food-service. With
for $10 – $15 each. A new factory prototypes developed the company is
has begun production of up to trying to determine which product to
1 million pounds of burger commercialise next. Chicken is a likely
product per month. No plans to choice as it is the most consumed
sell burgers in supermarkets or protein in the US and therefore the
direct to consumers. largest market.
27COMPANY PROFILES:
IMPOSSIBLE FOODS
Horizons Ventures
Investor Horizons Ventures Limited, based in Hong Kong,
funds especially disruptive and technology-focused
Profiles start-ups. Some of the latest exits are Skype, Siri,
Facebook, Summly, and Waze.
Khosla Ventures Temasek Holdings
Venture capital firm started in 2004 by Vinod Khosla, Incorporated in 1974, Temasek is an investment company
Co-Founder of Sun Microsystems. The firm focuses based in Singapore, with a US$180 billion portfolio as at 31
on environmentally friendly technologies in addition March 2016. Temasek’s portfolio covers a broad spectrum
to the traditional venture areas such as the Internet, of sectors: telecommunications, media and technology;
computing, mobile and silicon technology arenas. financial services; transportation and industrials; consumer
and real estate; life sciences and agriculture; energy and
resources.
GV Trinity Capital Investment
Launched as Google Ventures in 2009, GV is the Founded in 2008 as a provider of venture loans
venture capital arm of Alphabet, Inc. They’ve invested and leases for emerging growth start-up companies
in more than 300 companies in the fields of life seeking access to capital while preserving equity
science, healthcare, artificial intelligence, robotics,
transportation, cyber security, and agriculture.
28COMPANY PROFILES:
IMPOSSIBLE FOODS
Bill Gates
Investor Founder, technology advisor and board member of
Microsoft Corporation. Has privately invested in 21
Profiles companies including Beyond Meats and Memphis
Meats, as well as renewables and social change
companies.
UBS Viking Global Investors
UBS is a leading global wealth manager, a leading, Viking Global Investors LP is a global investment
global investment banking and securities firm, and one firm managing more than $20 billion in capital across
of the largest global asset managers. They were the long-short equity and long-only strategies. The firm
lead investor in Impossible Foods Series D funding was established in 1999 and has offices in Greenwich,
round. New York City, Hong Kong, and London.
Li Ka-shing Innovative Fund
Li Ka-shing is a Hong Kong business magnate, Innovative Fund is a sister-fund to the Collaborative
investor, and philanthropist. He is one of the wealthiest Fund, initiated by NXC – the holdings company of
people in Asia, with an estimated net worth of US$34.4 Nexon Corporation. They invest in entrepreneurs
billion. Prior to retirement in early 2018, he was the looking to create world-scale impacts. They are also
chairman of CK Hutchison Holdings investors in Beyond Meat, and Exo Protein Bars
(Cricket Flour).
29COMPANY PROFILES:
IMPOSSIBLE FOODS
Date Type Investors Money Raised
Khosla Ventures
Temasek Holdings
Aug 2017 Convertible Note
Horizon Ventures $75 m
Bill Gates
May 2016 Debt Financing Trinity Capital Investment $16.5 m
Khosla Ventures
Horizon Ventures
Total Bill Gates
Funding Sep 2015 Series D UBS $108 m
Viking Global Investors
to date Li Ka-shing
Innovative Fund
GV
June 2014 Series C
Horizons Ventures $40 m
Jul 2013 Series B Bill Gates $25 m
Jul 2011 Series A Khosla Ventures $9 m
30COMPANY PROFILES:
BEYOND MEAT
Product Pipeline: Engagement Strategy:
Probably more focused The company has taken a more traditional marketing approach,
on expanding current targeting those consumers looking to make healthier choices, and
products and innovating giving them an easy and affordable pathway.
around format rather than
developing new products.
Founders Founded Market:
Ethan Brown 2009 Retail Supermarkets,
currently expanding to
restaurants.
Employees Products:
51 – 100 Beyond Burger (Non-GMO No Soy or Gluten), Beast Burger
(Non-GMO Pea Protein), Beyond Chicken Strips (Non-GMO Soy and
Pea Protein), Beyond Beef Crumble (Non-GMO Pea Protein).
Short-term Strategy: Long-term Strategy:
Partnering with large meat processors The ultimate aim of the company is
(e.g. Tyson) and distributors (e.g. to be on the menu of major fast-food
Sysco) to leverage supply chain and chains (McDonald’s and Burger King)
market experience to expand market in 5 years. With its new distribution
share. partnerships the supply chain
challenges of meeting food-service
requirements may be easier.
31COMPANY PROFILES:
BEYOND MEAT
General Mills
Investor General Mills is one of the world’s largest food
companies, marketing in more than 100 countries. Its
Profiles US Retail arm includes seven divisions that market
brands such as Cheerios, Yoplait yogurt, Pillsbury
refrigerated dough and Betty Crocker baking products.
In 2017 it also invested into an organic and vegan food
company, Purely Elizabeth
US Humane Society GreatPoint Ventures
A non-profit animal protection organization that fights A Venture Capital firm focusing on Health and
for the protection of all animals through advocacy, Biomedical investment. They are very low-profile
education, and hands-on programs. investors.
Tyson Foods New Crop Capital
Tyson Foods, Inc. (NYSE: TSN), founded in 1935 with A specialized private venture capital fund investing
headquarters in Springdale, Arkansas, is one of the in products or services to replace foods derived from
world’s largest processors and marketers of chicken, conventional animal agriculture. They are invested
beef and pork, as well as prepared foods. Tyson in more than 15 food companies including Memphis
employs 115,000 people at more than 400 facilities Meats, GoodCatch (Plant-based seafood), and the
and offices in the U.S. and around the world. Purple Carrot (Plant-based food delivery)
32Bill Gates
COMPANY PROFILES:
BEYOND MEAT
Founder, technology advisor and board member of
Microsoft Corporation. Has privately invested in 21
companies including Beyond Meats and Memphis
Meats, as well as renewables and social change
companies.
S2G Ventures
Investor A multi-stage venture fund focused on investments
in food and agriculture industries. Food companies
Profiles they have invested in include Ripple Foods (dairy-free
milk replacement), FishPeople Seafood (sustainable
seafood products), and MycoTechnology (fungi based
food-processing)
Closed Loop Capital Obvious Ventures
An early-stage venture capital platform investing A VC firm with a focus on world improvement. They
in agricultural entrepreneurs. They have invested have invested in over 43 companies in health, energy
in MycoTechnology (fungi based food-processing), and food. Their food investments include Miyoko’s
Inocucor Technologies (biological products), and Kitchen (vegan cheese) and Good Eggs (grocery
Zipongo (healthy eating apps). delivery)
Kleiner Perkins Caufield and Byers Innovative Fund
A well known Silicon Valley venture capital firm, due Innovative Fund is a sister-fund to the Collaborative
in large part to their past success. They were early Fund, initiated by NXC – the holdings company of
investors in many significant companies, including Nexon Corporation. They invest in entrepreneurs
Amazon, AOL, Compaq, Electronic Arts, Google, looking to create world-scale impacts. They are also
Intuit, Macromedia, Netscape, Segway, and Sun investors in Beyond Meat, and Exo Protein Bars
Microsystems. (Cricket Flour).
33COMPANY PROFILES:
BEYOND MEAT
Date Type Investors Money Raised
Aug 2017 Convertible Note Unknown $8.41m
General Mills
May 2016 Series F Tyson Foods $23.46m
US Humane Society
Kleiner Perkins Caufield and Byers
Obvious Ventures
Bill Gates
Total
Sep 2015 Series E
S2G Ventures $17m
Closed Loop Capital
Funding Innovative Fund
to date
June 2014 Series D Obvious Ventures $25m
Jul 2013 Series C Closed Loop Capital $15m
Jul 2011 Series B Unknown $5m
April 2011 Series A Unknown $2m
34CONSUMER CHATTER
EXAMPLES
Consumer Chatter Examples
35CONSUMER CHATTER
EXAMPLES
Consumer Chatter Examples
36KEY MESSAGES FROM RESEARCH
Impossible Burger Survey Social Media Analysis
To obtain a picture of Impossible Burger consumers, we surveyed Social media and online data is generally positive. Because the
residents of California to identify who has purchased the burger, why burger is “trendy”, many use online posts with the burger as a
they like it, and whether they will regularly purchase them in future. kind of status symbol. Filtering these posts, we determined key
constraints to increased uptake.
This survey found that:
• Consumers are most likely to be • People who have tried the • The marketing strategy to primarily • Many vegan and vegetarians do not
in their 30s or 40s, with access burger like it most for its target meat-eating consumers has like the product as they do not want
to higher disposable income and environmental credentials, and been quite successful. meat substitutes.
living in a large city with ready to a lesser extent because its
• The major question is whether the • Impossible Foods faces a challenge
access to the product. healthy.
trend for high-end burgers continues that to satisfy the FDA of the product’s
• Less than 2% of respondents • Around 40% of people who in future and whether the Impossible safety they must carry out animal
have tried the burger. have tried of the burger don’t Burger can consistently beat the testing, causing PR issues.
expect it to be a regular item in experience of traditional burgers.
• Of those who tried it around: • They are also grappling with
their diet.
• Low tolerances in the cooking process issues around GMO status which
• 30% will eat them regularly
• Most consumers (95%) have mean the final product quality can vary are important to maintain the
• 20% didn’t like it
never heard of it. greatly. environmental credentials of the
product – a major drawcard for
consumers.
37THE GROWTH OF IMPOSSIBLE FOOD
AND THE IMPOSSIBLE BURGER
Progress of the Impossible Burger since the
survey in October 2017
Techniques
Expansion Impossible Foods has launched a campaign,
‘Impossible Demand’ where customers can
The maps bellow shows the amount of locations request their local restaurant to feature the burger
selling the Impossible burger in 2017 and the rapid on their menu, and in return, the restaurant will
expansion of locations selling the burger in 2018. receive a discount off their first order.
2017
Celebrity attention
At Ellen DeGerneres’ 60th birthday, in February
2 2018., DeGeneres served the Impossible Burger
8 2 to her guests, including, Kim and Kanye West,
12
16 1 4 6 Jennifer Lawrence, Oprah, John Legend, and
1
Chrissy Teigen. During an interview on The Ellen
20 Show, Teigen, a foodie and model, discusses
how amazing she thought the Impossible Burger
4 tasted.
4 7
7
2018
57 16
1 Thinking global
5
1
16 19 1 “We’ve always known that
2 165 our mission is global. Asia is an
83 81
important milestone, but frankly
19 5
1 13 it’s only the beginning of our
183 global expansion” said David
7 2 8
16 Lee, Impossible Foods chief
1
operating officer, December
39 4 2017.
48
38bibliography
Alliance Group almost doubles operating profit (2017) Radio Impossible Foods Will Debut Its Plant-Based Burger in Asia
New Zealand. in 2018 (2017) Fortune.
Retrieved from: https://www.radionz.co.nz/news/country/344622/ Retrieved from: http://fortune.com/2017/12/14/impossible-foods-
alliance-group-almost-doubles-operating-profit burger-asia-debut-2018/
Funk, C., Kennedy, B. Public opinion about genetically Impossible Foods Raises a Whopping $108 Million For Its
modified foods and trust in scientists connected with these Plant-Based Burgers (2015) Tech Crunch.
foods (2016) Pew Research Centre.
Retrieved from: https://beta.techcrunch.com/2015/10/06/
Retrieved from: http://www.pewinternet.org/2016/12/01/public- impossible-foods-raises-a-whopping-108-million-for-its-plant-
opinion-about-genetically-modified-foods-and-trust-in-scientists- based-burgers
connected-with-these-foods/
Mintel GNPD data: 15.7% of new US food/bev products
Google wants the world to go meat-free: Search giant tried made non-GMO claims in 2015 vs 2.8% in 2012 (2016) Food
to buy a veggie burger start-up for $300 Million (2015) Daily Navigator USA.
Mail Australia.
Retrieved from: https://www.foodnavigator-usa.com/
Retrieved from: http://www.dailymail.co.uk/sciencetech/ Article/2016/03/17/Mintel-GNPD-label-claims-trends-Non-GMO-
article-3177026/Google-wants-world-meat-free-Search-giant- vegan-all-natural
tried-buy-veggie-burger-start-300-MILLION.html
Impossible Foods Closes a $75 Million Investment After
Achieving Key Milestones (2017) Business Wire.
Retrieved from: https://www.businesswire.com/news/
home/20170801005659/en/Impossible-Foods-Closes-75-Million-
Investment-Achieving
39You can also read
