I just saw an article in today's (24 May 2017) San Diego Union Tribune and LA times by David Pierson about the Umami Burger serving a new "Impossible Burger." It is described as a vegetarian burger that "bleeds" and tastes very similar to real beef hamburger.
However, I believe there is one problem: Price! The article I referenced says tha the Umami Burger's version of the "Impossible Burger" will sell for $16. I can believe that people might be willing to try it once--but probably would not make a habit of eating at that price!
Over the past 30 years, my wife, Elaine, has purchased different vegetarian burgers. One of the brands I remember was "Morningstar Farms." We thought they tasted sort of OK --but weren't great, However, because usually, they were more expensive than their real beef equivalent, we generally did not buy them again.
The price for a commodity usually reflects the cost of production in some way. Environmentalists would like to see all things we buy accurately reflect the cost not just of production, but also the cost of the effect on the environment. It is hard for me to understand how some oats, other grains, mushrooms, and seasoning could be as costly to produce as growing and processing beef into hamburger. From an environmental standpoint, the veggie burger must have much lower environmental cost than beef. Why are non-beef burgers still so much more expensive?
As a consumer, I look for the best value for my money. I want a food that tastes good, but also provides me with the most nutrition, including protein. Since lean ground beef is currently selling for between $2.15 and $3.50/pound, the meat for a quarter-pound burger should cost less than $1 to cook at home. To be able to achieve mass-market penetration, the cost of bulk vegetarian burger material would need to be at least 25% less than the cost for ground beef. By my estimation, the cost to produce the veggie burger material must be at least 50% of the cost of beef. That gives the veggie burger business still a big opportunity for profit. Typical restaurants now are charging from $5 to $9 for deluxe beef hamburgers. In my mind, an equivalent veggie burger should be priced 15%-25% below that.
Why are prices of veggie burgers still so high? I believe it is because retailers treat it as a specialty item. I also think that they are afraid that if the price drops, they will lose business for the higher priced beef due to the "cross-elasticity of demand." Also, there doesn't seem to be any real competition because the market appears to be just a malls "niche."
We have a "chicken or egg" situation. Businesses aren't willing to ramp up production and drive down the costs to produce the products because the market doesn't appear big enough. And consumers aren't willing to buy the products because the prices are too high and selection is too small. I think it is going to take a large manufacturer to put out a huge marketing campaign with major TV spots along with TV, newspaper and magazine ads to break through the barrier. Not sure it will ever happen because the company that makes that investment can be undercut easily by copycat competitors.
I thought this day would come sooner or later, and I hope that other meats can be realistically simulated with vegetarian materials. From my reading, it appears that we should all eat much less meat (or none?) for our health, and to help the environment.
I am looking forward to trying an Impossible Burger at some point, and I do hope it will be an enjoyable experience. I also hope that non-meat sandwiches become more popular.However, I believe there is one problem: Price! The article I referenced says tha the Umami Burger's version of the "Impossible Burger" will sell for $16. I can believe that people might be willing to try it once--but probably would not make a habit of eating at that price!
Over the past 30 years, my wife, Elaine, has purchased different vegetarian burgers. One of the brands I remember was "Morningstar Farms." We thought they tasted sort of OK --but weren't great, However, because usually, they were more expensive than their real beef equivalent, we generally did not buy them again.
The price for a commodity usually reflects the cost of production in some way. Environmentalists would like to see all things we buy accurately reflect the cost not just of production, but also the cost of the effect on the environment. It is hard for me to understand how some oats, other grains, mushrooms, and seasoning could be as costly to produce as growing and processing beef into hamburger. From an environmental standpoint, the veggie burger must have much lower environmental cost than beef. Why are non-beef burgers still so much more expensive?
As a consumer, I look for the best value for my money. I want a food that tastes good, but also provides me with the most nutrition, including protein. Since lean ground beef is currently selling for between $2.15 and $3.50/pound, the meat for a quarter-pound burger should cost less than $1 to cook at home. To be able to achieve mass-market penetration, the cost of bulk vegetarian burger material would need to be at least 25% less than the cost for ground beef. By my estimation, the cost to produce the veggie burger material must be at least 50% of the cost of beef. That gives the veggie burger business still a big opportunity for profit. Typical restaurants now are charging from $5 to $9 for deluxe beef hamburgers. In my mind, an equivalent veggie burger should be priced 15%-25% below that.
Why are prices of veggie burgers still so high? I believe it is because retailers treat it as a specialty item. I also think that they are afraid that if the price drops, they will lose business for the higher priced beef due to the "cross-elasticity of demand." Also, there doesn't seem to be any real competition because the market appears to be just a malls "niche."
We have a "chicken or egg" situation. Businesses aren't willing to ramp up production and drive down the costs to produce the products because the market doesn't appear big enough. And consumers aren't willing to buy the products because the prices are too high and selection is too small. I think it is going to take a large manufacturer to put out a huge marketing campaign with major TV spots along with TV, newspaper and magazine ads to break through the barrier. Not sure it will ever happen because the company that makes that investment can be undercut easily by copycat competitors.
