Impossible Foods abandons partnership with McDonald’s due to lack of capacity

Impossible Foods, the US maker of artificial meat, said it was no longer trying to win a coveted deal to supply artificial meat burgers to McDonald’s because its existing capacity could not meet the huge demand that could result from partnering with the world’s largest fast-food chain. Shares of rival Beyond Meat jumped 12.5 percent on Tuesday, boosted by the news.

Impossible Foods abandons partnership with McDonald's due to lack of capacityImpossible Foods abandons partnership with McDonald's due to lack of capacity

Pat Brown, chief executive of Impossible Foods, told Reuters in an interview: “It would be foolish if we competed with them now . . . Until we can expand production, it will not be any good for us to have more big customers. ”

Last month, UBS estimated in a report that if McDonald’s launched artificial meat burgers at its nearly 14,000 U.S. stores, it could sell more than 250 million them a year.