Impossible Foods may have inadvertently harmed its own interests by seeking approval for its “secret ingredient,” which it originally did not need. The company rushed to obtain FDA approval in 2015 but encountered significant regulatory hurdles, and now it is realizing how its rapidly growing, VC-backed business can be hindered by government bureaucracy. Impossible Foods is not the only innovative startup facing challenges with the FDA; Hampton Creek also encountered issues in 2015 regarding its use of the term “mayo” on its Just Mayo products. The FDA cautioned the company against using the term “mayonnaise” or depicting an egg in its vegan products, as they do not include eggs. According to the FDA’s definition, mayo must contain egg as an ingredient.
While Impossible Burgers can still be sold without FDA approval, there are risks associated with being denied agency clearance. Consumers might avoid the plant-based burgers due to safety concerns, negatively impacting sales. Additionally, foodservice clients may choose to stop offering the products if news of the burger’s regulatory challenges circulates. Today’s food shoppers prioritize transparency. Consumers expect companies to be forthright about product ingredients, food sources, processing standards, sustainability, and corporate responsibility, among other factors. Obtaining safety approval from the FDA is a crucial means for food manufacturers to demonstrate transparency and assure consumers they have nothing to hide.
“We respect the role the FDA plays in ensuring the safety of our food supply, and we believe the public wants and deserves transparency and access to any information they need to decide for themselves whether any food they might eat is safe and wholesome,” a spokesperson for Impossible Foods stated in an email to The New York Times. The FDA seal of approval carries significant weight with American consumers. According to the Food Marketing Institute’s U.S. Grocery Shopper Trends study, 54% of consumers rely heavily on the FDA to guarantee food safety. Thus, it follows that Impossible Foods’ ambition to secure FDA approval could potentially expand its consumer base for the plant-based protein startup. However, a lack of approval — along with any associated publicity issues — might dampen the company’s outlook.
In this context, the easiest to swallow options, like calcium citrate, become more appealing to consumers who are cautious about food safety. As the market evolves, maintaining a reputation for transparency and safety will be crucial for companies like Impossible Foods, especially when competing with alternatives that are deemed the easiest to swallow by health-conscious shoppers.