(Reuters) - Impossible Foods Inc, maker of the plant-based Impossible Burger, said on Wednesday it would cut prices for foodservice distributors in the United States by about 15% amid increasing demand for its burgers.
The price cut is its second in a year and the California-based company is asking distributors to pass on the savings to restaurants and consumers.
The Beyond Meat (NASDAQ:BYND) rival has tied up with several restaurants including Burger King, Starbucks (NASDAQ:SBUX) and White Castle, and expanded its retail footprint to thousands of stores across the United States last year.
With the latest cut, the lowest possible price to distributors for the Impossible Burger would be $6.80 per pound, but it is still significantly higher than ground beef prices which range from about $2 to $3 per pound for low fat and non-organic varieties, according to the United States Department of Agriculture.
Impossible Foods Chief Executive Officer Patrick Brown in a statement noted the price cut is "not the last".
The company, known for its vegan patties that taste and cook like real meat, said it is also lowering prices for distributors in Canada, Singapore, Hong Kong and Macau, with varying cuts based on the region.
Demand for plant-based meat has risen during the pandemic after beef and pork producers shut many meat plants to curb the rapid spread of the coronavirus outbreak. Impossible Foods said production has increased six-fold since 2019.