While reports of COVID-19 outbreaks have shut down factories or disrupted supply chains for the traditional meat industry, plant-based meat company Impossible Foods has found itself expanding its reach -- this time through a new partnership with Starbucks.
The coffee chain announced this week it will be featuring the Impossible Breakfast Sandwich on its summer menu.
"Something like one-third of all the 18- to 29-year-olds in the country hit a Starbucks at least once a quarter," David Lee, Impossible Foods' chief financial officer, told Cheddar. "And so for us to be available in this way, to have nearly 20,000 locations serve our Impossible Sausage products, is a wonderful milestone for us."
Lee explained that Impossible's co-manufacturing partnerships, such as the one it shares with food supplier OSI Group, provides enough scalability to supply the market for its meat alternatives.
"It means that we can meet the large demand we expect from Starbucks, Burger King, many other partners, but also a really rapid rollout in grocery stores, which we began to speed up sometime around March or so this year," he said.
The CFO was also confident the company was addressing challenges from the coronavirus pandemic by selling Impossible Burgers that can be delivered straight to customers' homes. He reported that grocery sales of its products had grown 30 times over since March when most stay-at-home orders began, in addition to the orders made directly to Impossible.
"The theme has been scaling to meet unprecedented demand. As a result we feel relatively well-prepared to handle how this current pandemic has changed the way meat-eaters like to get their meat," he said. "We're seeing folks order it directly from us to be shipped to their home, which is why we created our direct-to-consumer business."
Still, Impossible Foods has had to weather the pandemic like many other businesses, including the meatpacking industry. According to Lee, however, the stark differences in the businesses give plant-based meat an advantage.
"Unlike many of those unfortunate meat plants, we bypass a lot of the problems they face," he noted. "We don't grow animals, slaughter them, transport them, process them, so we don't have the same challenging conditions the meat industry faces."
Lee also agreed with Impossible Foods founder and CEO Pat Brown, who predicted on Tuesday that the meat industry will be facing its own extinction in just 15 years.
"I believe in the meat-eater," Lee said. "We meat-eaters are pretty sophisticated. You give us a better product that hits the spot, that's better for our health, that's better for the world -- we vote with our stomachs."
"I think the consumer will determine the future and will determine it pretty quickly."
In March, Impossible raised $500 million in Series F funding but despite the aggressive scaling and partnerships Lee described, he said there are no current plans to join fellow plant-based meat company, Beyond, as a public company.
Venture capitalists and CEOs are clashing over the future of the internet. Web3 is the tech world's name for a decentralized, blockchain-based internet that runs on cryptocurrency. It was recently the topic of a tweet from Block CEO and former Twitter CEO Jack Dorsey who wrote that Web3 will not actually be owned by users, and instead be controlled by rich venture capitalists. Dorsey later shared that he was blocked on Twitter by Marc Andreesen, co-founder of VC firm Andreesen Horowitz, which has invested billions of dollars into Web3 and crypto projects. Correspondent for DealBook from the New York Times, Ephrat Livni, joins Cheddar News' Closing Bell to discuss what this could mean for the future of Web3.
Jim Worden, Chief Investment Officer at Wealth Consulting Group, joins Cheddar News' Closing Bell, where he says the period between Christmas and New Year's is difficult to predict due to a lack of institutional volume, with the Omicron variant adding even more uncertainty on Wall Street.
Prices at the pump this year reached a seven-year high, and a new forecast from GasBuddy shared with CNN predicts that gas prices will only continue to rise in 2022 and that the national average could even reach $4.00 a gallon; however, analysts at GasBuddy say anything could happen when it comes to gas prices in the future, as the pandemic has made it difficult to make any predictions about the economy. Consumer Energy Alliance federal policy advisor Michael Zehr joins Cheddar News' Closing Bell to discuss.
The record-breaking success of "Squid Game" on Netflix has many media companies competing to produce, stream, and invest in new content from South Korea. Netflix has spent half a billion dollars on developing Korean content this year, and other streaming services are taking note. Seth Schachner, managing director at StratAmericas and digital business executive, joins Cheddar News to discuss.
Airlines had to ground 2,500 flights in the U.S. on Tuesday, with bad weather and workers out with COVID-19 blamed as the main culprits. Scott Keyes, founder of ScottsCheapFlights.com and author of "Take More Vacations," joined Cheddar News Wrap to discuss how the surge from the omicron variant has been creating havoc in the air travel industry. Keyes noted that a lack of personnel from pilots to gate agents had been exacerbated by the coronavirus, an issue also disrupting labor markets throughout the economy. "Add to that the fact that travel has rebounded far quicker than many analysts and experts predicted, this is why I think you're seeing so many airlines caught a bit flat-footed in having to pare back the schedules they had set months ago," he said.
Barstool Sports CEO Erika Nardini joined Cheddar's Kristen Scholer to discuss plans for the future even as COVID-19 upended Barstool's sponsorship of the Arizona Bowl featuring the Boise State Broncos and the Central Michigan Chippewas due to the spreading omicron variant. "In our case as a company, coronavirus has been a big boom for us," she noted. "We've been able to create a lot of new programming, launch a lot of different personalities, and frankly take share from traditional media, and that's what we've done the entire pandemic." While she admitted to taking a hit on the canceled Bowl game, live events aren't completely off the table for Barstool in 2022. Nardini also talked about potential sports betting expansion following its partnership with Penn National Gaming.
