Reuters reports on a cooling of the US stock market’s taste for plant-based meat makers. It has raised doubts among some investors and analysts about Impossible Foods’ plans to achieve a $10 billion flotation.
Impossible is seeking to go public through an initial public offering or via a merger with a blank-check company within the next 12 months, sources told Reuters this month.
The market value of larger competitor Beyond Meat however, has sunk from a peak of $14 billion to closer to $8.5 billion and is predicted by several brokerages to fall further.
Both firms carry expectations of being big players in a so-called faux meat market which some predict could be worth $85 billion a year by 2030 as dietary habits shift.
But with retail sales of some products sliding, four sectoral investors told Reuters that Beyond’s 420 per cent rise in value since listing in September 2019 was now seen as overcooked.
“The $10 billion for Impossible Foods, with Beyond Meat at $8 or $8.5 billion? The first reaction is that these valuations are coming from outer space,” said Patrick Morris, whose Eat Beyond vehicle has invested in three Canada-listed plant-based ventures. Morris is looking at investing in Impossible if it opens its books.