(Reuters) - Impossible Foods on Tuesday announced an average 15% cut in prices of its vegan products sold to U.S. distributors as the plant-based meat maker tries to make its patties more affordable to compete better with beef.
Plant-based fast food options are still more expensive on average than regular meat offerings across restaurants, limiting their popularity.
“We are asking our distributors to pass along the price cuts that average around 15% to restaurants,” Impossible Foods President Dennis Woodside said.
It, however, added that the price cuts would not affect its products sold at about 150 retail stores.
The move comes amid increasing demand for its flagship Impossible Burger served in thousands of restaurants, including Restaurant Brands International Inc’s (QSR.TO) Burger King, Red Robin Gourmet Burgers Inc (RRGB.O), Cheesecake Factory Inc (CAKE.O) and Hard Rock Cafe among others.
Earlier this year, Burger King said it would add its plant-based Impossible Whopper sandwich to its “2 for $6” promotion as it tries to attract more customers with affordable options.
Last week, Walt Disney Co (DIS.N) said it would serve Impossible Foods’ burgers at its theme parks, resorts and cruise liners.
Impossible Foods also said it would add several more beef-like products to its lineup, including quarter-pound and third-pound Impossible Burger patties.
Both Impossible Foods and rival Beyond Meat (BYND.O) have been scaling up partnerships with fast-food restaurants to tap environment-conscious diners.
Beyond Meat CEO Ethan Brown had earlier expressed the company’s intent to price its products below animal protein at some point.
Shares of Beyond Meat were up for a second straight session. They fell about 20% on Friday after missing quarterly profit estimates.
Reporting by Nivedita Balu in Bengaluru; Editing by Arun Koyyur and Anil D'Silva