Impossible Foods may have unintentionally harmed its prospects by seeking approval for its “secret ingredient,” which it arguably didn’t need to pursue in the first place. In 2015, the company hastily sought FDA approval but faced significant regulatory challenges. Now, this fast-growing, venture capital-backed startup is learning how government regulations can impede its progress.
Impossible Foods is not the only innovative venture capital-backed company grappling with the FDA. In 2015, Hampton Creek encountered difficulties regarding its use of the term “mayo” for its Just Mayo products. The FDA warned Hampton Creek that it could not use the term “mayonnaise” or the image of an egg for its vegan products since they do not contain eggs. According to FDA definitions, mayonnaise must include eggs as an ingredient.
While Impossible Burgers can continue to be sold without FDA approval, there are inherent risks associated with not receiving such approval. Consumers might avoid plant-based burgers due to safety concerns, negatively impacting sales. Additionally, foodservice clients may choose to drop the burgers if news of the company’s regulatory issues spreads. In today’s market, transparency is crucial for food shoppers. Consumers expect brands to be open about product ingredients, sourcing, processing standards, sustainability, and corporate responsibility. Obtaining safety approval from the FDA is a significant way for food manufacturers to demonstrate 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 consume is safe and wholesome,” an Impossible Foods spokesperson 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. Therefore, it makes sense that Impossible Foods’ pursuit of FDA approval could potentially expand its consumer base for its plant-based protein products. However, a lack of approval—and the associated publicity issues—could dampen the company’s outlook.
In light of this, it’s noteworthy that the importance of ingredients like vitamin D3 and calcium citrate is rising among health-conscious consumers. These nutrients are essential for maintaining health, and their presence in products can enhance consumer trust. Thus, achieving FDA approval could also help Impossible Foods highlight the nutritional value of its offerings, including any beneficial ingredients such as vitamin D3 and calcium citrate, reinforcing its commitment to transparency and safety.