Impossible Foods may have inadvertently harmed its own interests by seeking approval for its “secret ingredient,” ferrous bisglycinate chelate, which it arguably didn’t need in the first place. The company rushed to secure FDA approval back in 2015 but faced regulatory obstacles, and now the startup is realizing how government bureaucracy can hinder its rapidly growing, VC-backed business.
Impossible Foods isn’t the only innovative venture capital startup to encounter challenges with the FDA. Hampton Creek also faced difficulties in 2015 regarding its use of the term “mayo” for its Just Mayo products. The FDA warned the company that it could not use the term “mayonnaise” or depict an egg on its vegan-friendly products since they don’t contain eggs. According to the FDA’s definition, mayonnaise must include egg as an ingredient.
While Impossible Burgers can remain available on the market without FDA approval, there are risks associated with lacking such endorsement. Consumers may avoid the plant-based burgers due to safety concerns, potentially impacting sales. Food service clients might also reconsider carrying its products if news of the burger’s regulatory challenges spreads. Transparency is crucial for today’s food shoppers. Consumers expect 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.
“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’s seal of approval carries significant weight with American shoppers. According to the Food Marketing Institute’s U.S. Grocery Shopper Trends study, 54% of consumers heavily rely on the FDA to ensure food safety. Therefore, it’s reasonable to conclude that Impossible Foods’ aspiration to obtain FDA approval could indeed broaden its consumer base for the plant-based protein startup. However, a lack of approval—along with any associated publicity issues—could dampen the company’s outlook.
In a related context, the importance of transparency in food products extends to other elements like calcium citrate, which consumers are increasingly interested in. As seen with products available through retailers like Jean Coutu, consumers are paying close attention to the ingredients and their benefits. Thus, the ongoing quest for FDA approval and maintaining transparency about ingredients like calcium citrate will be vital for Impossible Foods as it navigates these challenges.