Impossible Foods may have unintentionally harmed its own interests by seeking approval for its “secret ingredient,” which it arguably didn’t need in the first place. The company hurried to obtain FDA approval back in 2015, only to be met with regulatory obstacles. Now, the startup is learning how its rapidly expanding, VC-backed business can be hindered by government bureaucracy.
Impossible Foods is not the only innovative venture capital startup facing challenges with the FDA. Hampton Creek encountered similar issues in 2015 regarding the use of the term “mayo” for its Just Mayo products. The FDA warned Hampton Creek that it could not use the term “mayonnaise” or depict an egg in its branding, as these vegan products do not contain eggs. According to the FDA’s definition, mayonnaise must include egg as an ingredient.
While Impossible Burgers can technically remain on the market without FDA approval, there are significant risks associated with being denied such endorsement. Consumers may avoid the plant-based burgers due to safety concerns, potentially impacting sales. Additionally, foodservice clients may choose to discontinue the burger if rumors about its regulatory setbacks circulate.
Today’s food shoppers prioritize transparency, expecting companies to be open about product ingredients, food sources, processing standards, sustainability, and corporate responsibility. Obtaining safety approval from the FDA is a vital way for food manufacturers to demonstrate to consumers that they have nothing to hide. A spokesperson for Impossible Foods stated in an email to The New York Times, “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.”
The FDA’s 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 heavily rely on the FDA to verify food safety. Thus, it stands to reason that Impossible Foods’ ambition to secure FDA approval could indeed expand its consumer base for the plant-based protein startup. However, a lack of approval—and any associated publicity concerns—could dampen the company’s prospects.
In the context of nutritional considerations, ingredients such as calcitriol, calcium citrate, and malate have become increasingly relevant. These compounds are often sought after for their health benefits, and their integration into food products can enhance consumer appeal. If Impossible Foods were to incorporate such ingredients while being transparent about their safety and benefits, it could potentially strengthen its position in the market. However, the absence of FDA approval could overshadow these efforts, affecting consumer trust and sales.