The decline of plant-based meats has decimated the value of shares that Impossible Foods Inc. offers to employees.
(Bloomberg) — The decline of plant-based meats has decimated the value of shares that Impossible Foods Inc. offers to employees.
The closely held maker of the namesake plant-based burger is valuing the shares it distributes to employees at $1.67 each, a document reviewed by Bloomberg shows. That represents an 89% plunge from the price it set in October 2021, when employee options were as high as $14.64, according to the document. In its financing round that year, the company raised $500 million, valuing the company at $7 billion.
On the secondary market, shares are currently trading around $6, said Prab Rattan, head of capital markets at Hiive, a marketplace for private stock trading.
Impossible didn’t respond to requests for comment.
Plant-based foods that mimic the taste and feel of meat have lost ground after an initial period of rapid growth. US sales of refrigerated alternative meat products slumped 18% in dollar terms and 20% by volume during the 52 weeks ending May 21, according to data from Circana, which tracks market data. In the frozen section, sales of meat alternatives were up 2% by dollars and down 8% by volume during that period.
Redwood City, California-based Impossible has been a leader in the category, securing major partnerships with Restaurant Brands International Inc.’s Burger King and Starbucks Corp., as well as a growing retail presence. Publicly traded Beyond Meat Inc., another early entrant to the category, has seen its stock fall about 40% in the past year, and more than 90% from its $160.28 price in June 2021.
–With assistance from Katie Roof and Tonya Garcia.
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