Founded in 2011, California-based Impossible Foods specialises in plant-based meat and is best known for its Impossible Burger (I tried it when I was in the U.S. a couple of years ago and thought it was great ).
Impossible is privately owned and recently ranked fourth on a list of America’s fastest grown brands.
According to the report, 35% of Americans said they are familiar with the brand - probably thanks to its deal with Burger King to supply the chain with an Impossible Whopper.
Its main competitor is Beyond Meat, one of the most requested stocks on Freetrade. The stock price has recovered after rising over 200% and then crashing in its first few months as a public company:
I’m personally excited about the prospect of an Impossible IPO.
Would you invest in Impossible Foods if it went public?
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I would have to taste their products first. Beyond meat was a huge let down taste wise. Quorn range is superior… So to avoid getting carried away with the hype it’s a taste test.
I’d love to taste it. Imho beyond meat is incredible. Love the taste and i switched from eating beef to only eating beyond meat burger now.
Investing is a different matter. Valuations are still sky-high for BM, so let’s see how IF is going to float.
For whoever wants to try: BrewDog and Honest Burger have BM burger and they patties can be bought in Tesco Superstores (at least here in London).
Long answer: generally still no - it cound either end up like Beyond Meat, shooting up to a wildly inflated value before crashing back down again; or it’ll be like most IPOs seem to be and slowly slide down almost from the start.
Caveat to long answer: if it were to IPO, and be available on Freetrade from IPO, I might risk a share or two and see if I can sell at peak before it crashes (or for at least more than purchase price). But unlikely if Freetrade late to the party again (and also unlikely due to my current risk appetite, anyway).
Interesting they mention secondary sales at an even higher valuation. I wonder how recent they were since plant food is very much out of favour. Beyond is down two thirds since Impossible mooted it’s $10b IPO so no idea why shareholders think they can get away with that in secondaries now (clearly it’s working).
No one has bought Impossible shares at that price since the deal opened to the public.
Seedrs say the price was determined by the seller who previously sold $2.5M at the same price in the US. And seem unlikely to lower the price, even in light of the rumoured raise at a $7B valuation, because there are still lots of mugs in the US with money to burn.
The valuation of Impossible Food is crazy but there is a more general concern about the future growth rate of the plant based meat industry
From the Ft today:
Summary:
Plant-based meat is losing its sizzle, with falling US sales casting a shadow over expectations that the nascent category would take a chunk out of the real animal meat market.
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In the four weeks to October 3, sales of plant-based meat alternatives fell 1.8 per cent compared to the year before, taking declines for 2021 to 0.6 per cent, according to the US retail data group SPINS.
I have the feeling you get no good deals in the “Private Deal Room” of Seedrs. Instead, you just get the deals that they cannot be advertised in the retail investment forum due to lack of due diligence or fair valuation.
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