With New CFO Appointment, Impossible Foods IPO Might Be Underway
Is Impossible Foods going public? With new CFO David Borecky in tow, that just might be the case. Here's what investors can expect.
Aug. 10 2021, Published 11:58 a.m. ET
In April, reports surfaced about vegan meat-alternative brand Impossible Foods potentially seeking a public offering via a SPAC. Now, the company has officially named a new CFO, which looks to many like a leap toward actualizing the company's IPO.
Who is Impossible Foods' new full-time CFO David Borecky? What moves does he plan to make for Impossible Foods amid a fluctuating retail and dining economy?
David Borecky signs on as new full-time CFO for Impossible Foods
As a Stripe and Square veteran, Borecky joined the Impossible team in 2017 as the chief accounting officer. At the beginning of 2021, Impossible's former CFO David Lee transitioned to AppHarvest and Borecky stepped in as the interim CFO.
Now, that temporary role has become permanent, and Borecky will guide Impossible's finances as the brand evolves.
Borecky played a key role for Impossible and secured $700 million in funding over a two-year period. So, the switch felt natural for the brand. Borecky will be at the helm of finances as the company enacts "plans to introduce Impossible Chicken Nuggets Made From Plants and other new SKUs in restaurants and grocery stores this fall," according to a press release.
Impossible Foods focuses on price reduction and expansion
A few key factors at the top of Borecky's mind will be helping Impossible become more accessible for the average consumer by reducing product pricing. This is the antithesis to what meat industries like poultry are doing. The price of chicken increased 3.4 percent in the first half of 2021 alone, and that doesn't even include last year's soaring value. Granted, the poultry supply has slimmed by about 20 percent over the last year, but that gives Impossible an even better foothold as the brand prepares to lower its consumer-facing prices.
Meanwhile, Impossible aims to keep expanding. The company signed a major deal with Starbucks in 2020 and found itself a spot in U.S.-based Lidl grocery stores. Those partnerships will help Impossible deliver impressive results when it eventually moves toward a public offering.
Public competitor Beyond Meat reports struggles, Impossible Foods isn't immune
As stock for Beyond Meat (NYSE:BYND) drops 33 percent off of its January 2021 highs, the alternative meat industry faces obstacles in the ongoing COVID-19 pandemic, which continues to impact retail and dining revenue across the world. Impossible will have to deal with the same issues, although the company isn't required to report financials like publicly traded Beyond Meat just yet.
Is the rumored Impossible Foods IPO still on track?
In the original Reuters statement in April, Impossible Foods was reportedly seeking to go public via a reverse merger with a SPAC sometime in 2022. Given the full-time finalization of the CFO position, it's likely that the company still has the same plans. As for specifics, investors are still in the dark. If Impossible Foods does pursue a SPAC deal, the IPO could come quicker than if the company picks the traditional IPO route.