US plant-based meat manufacturer Impossible Foods is reportedly considering a public offering in the next few years.
Speaking to the news agency Reuters yesterday (29 April), chief executive Peter McGuinness said the California-headquartered group was also weighing up a sale to another company or a capital raise in the next two to three years.
Without disclosing Impossible Foods’ valuation, he allegedly said: “I don’t want to be pigeonholed into an IPO [initial public offering].”
In 2021, the business was weighing up whether to list through an IPO or through combining with a special purpose acquisition company (SPAC), Reuters reported.
Citing unnamed sources, the publication said Impossible Foods had worked with advisers on talks with SPACs after receiving offers at a lucrative valuation. Sources told the news agency a public listing could value Impossible Foods at around $10bn.
Last year, the business, which makes chicken, pork and beef alternatives, was said to be planning to cut around a fifth of its workforce. This would have meant around 130 job losses.
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According to a source cited by Bloomberg, Impossible Foods also offered “voluntary separation payments and benefits to employees at the end of 2022”.
Reuters reported that McGuinness said Impossible Foods is working to expand into more retailers after starting in foodservice at restaurants and fast-food outlets.
The company recently started selling at Whole Foods, and is open to expanding to dollar stores, the CEO added.
There are questions about the trajectory of the plant-based meat sector in the US due to falling sales and job cuts across the sector.
In February, US-based alternative-protein maker Beyond Meat posted another quarter of falling revenue and pointed to likely lower sales in 2024 as its US business continues to be hit by “weak” demand.
Net revenue fell 7.8% to $73.7m in the fourth quarter to 31 December and was down 18% for the year at $343.4m. The company forecast sales to be in the range of $315m to $345m for the new financial year.
Both adjusted EBITDA and bottom-line losses widened over the three months but narrowed in fiscal 2023, while margins for the first metric remained in negative territory with a more skewed minus slant than a year earlier.
