WEBVTT - U.S. Power Crisis Leaves Millions Cold, Dark as Blackouts Expand 0:00:01.800 --> 0:00:04.400 This is Bloomberg Business Week. I'm Charle Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanibek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.600 plus technology, politics, economics, all purtnising the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:19.600 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.200 download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.120 You can also listen to our radio show at two 0:00:25.160 --> 0:00:27.840 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.880 --> 0:00:32.120 YouTube search Bloomberg Global News. President Biden saying in a tweet, 0:00:32.159 --> 0:00:34.920 the US would excel his or what exceed excuse me, 0:00:35.200 --> 0:00:37.839 his goal of administering a hundred million vaccine doses in 0:00:37.840 --> 0:00:41.000 his first one hundred days in office. Tim also we 0:00:41.040 --> 0:00:45.400 saw US cases and hospitalizations dropping dramatically, suggesting that measures 0:00:45.400 --> 0:00:47.800 to interrupt transmission they are working, at least for now. 0:00:47.840 --> 0:00:50.080 Fingers cross Yeah, for now, fingers crossed. The big question 0:00:50.159 --> 0:00:51.720 is are we sort of out of the woods at 0:00:51.720 --> 0:00:53.840 this point from the latest peak. That's something I've been 0:00:53.840 --> 0:00:55.480 thinking about a lot and a lot of people saying 0:00:55.480 --> 0:00:57.800 it could be another rough twelve to fourteen weeks because 0:00:57.800 --> 0:01:00.080 of variants. Let's check in with Dr Peter alp In, 0:01:00.160 --> 0:01:04.080 VP of a Doximity. It's a professional medical network for physicians, 0:01:04.080 --> 0:01:06.000 he joins us on the phone in San Francisco. That's 0:01:06.000 --> 0:01:08.800 where he has a private practice. Dr Alpern, good to 0:01:08.840 --> 0:01:10.959 have you here with Tim and myself. How are you 0:01:11.000 --> 0:01:13.520 What are you seeing in terms of the number and 0:01:13.560 --> 0:01:16.240 severity of cases as well as the rollout of vaccines. 0:01:17.760 --> 0:01:19.960 Nice to be on the show, Thank you so much. Yeah, 0:01:20.000 --> 0:01:24.160 in San Francisco, we are seeing a decrease in general, 0:01:24.520 --> 0:01:27.280 so a decrease in the number of hospitalizations and also 0:01:27.400 --> 0:01:31.880 importantly improved UM, I see you capacity, as well as 0:01:32.400 --> 0:01:35.319 the death rates from COVID starting to decrease. But of 0:01:35.360 --> 0:01:38.319 course death from the illness is a lagging indicators, so 0:01:38.360 --> 0:01:40.840 that's something that does take, you know, several weeks to 0:01:40.840 --> 0:01:42.839 sort of start to come down after we see the 0:01:42.920 --> 0:01:47.480 number of patients being admitted come down. In terms of vaccinations, UM, 0:01:47.560 --> 0:01:51.560 we were had set up many vaccine sits here in 0:01:51.600 --> 0:01:54.400 San Francisco and in the Bay Area, but like most 0:01:54.480 --> 0:01:58.560 of the country, we are also prisoners to the UH 0:01:59.080 --> 0:02:01.280 the amount of vac scene it's made available to us, 0:02:01.320 --> 0:02:04.040 and so just recently, UM San Francisco has had to 0:02:04.120 --> 0:02:08.560 temporarily pause on vaccinating UM the citizens of the city 0:02:08.560 --> 0:02:12.000 and county simply because of a lack of vaccine. So 0:02:12.000 --> 0:02:14.400 so here we are at the at the where daily 0:02:14.480 --> 0:02:18.919 levels are basically at their lowest levels in months, um doctor, 0:02:18.960 --> 0:02:21.680 Does this have to do with vaccine? Does it have 0:02:21.800 --> 0:02:24.920 to do with the fact that we're weeks after a 0:02:24.919 --> 0:02:28.519 holiday and the post holiday bump that happened is now 0:02:28.560 --> 0:02:30.720 going down? Why are we seeing the decline here? All 0:02:30.720 --> 0:02:34.600 of the above? Yeah, exactly, it really isn't all of 0:02:34.639 --> 0:02:40.120 the above. M situation. So obviously, as people have the 0:02:40.160 --> 0:02:43.840 gatherings of around Thanksgiving and Christmas have sort of wound 0:02:43.840 --> 0:02:46.519 their way through the system and we and people were 0:02:46.560 --> 0:02:48.480 pretty good about not trying to get together for the 0:02:48.520 --> 0:02:52.679 Super Bowl, we seem to have experienced UM sort of 0:02:52.720 --> 0:02:56.720 the decline that we expected. And absolutely vaccinations are having 0:02:56.800 --> 0:03:00.239 an effect. If you really think about what vaccination does, 0:03:00.280 --> 0:03:03.720 it's really about reducing that really severe illness and making 0:03:03.760 --> 0:03:06.880 it so that people who do catch the COVID catch 0:03:06.919 --> 0:03:10.200 coronavirus and leading to COVID will end up having more 0:03:10.200 --> 0:03:12.080 of a flu like illness, but will not have those 0:03:12.120 --> 0:03:16.040 extremely severe reactions which of course can ultimately and unfortunately 0:03:16.080 --> 0:03:18.680 lead to death. What are you thinking as far as 0:03:18.800 --> 0:03:23.280 timeline for when we will see widespread inoculation, given that 0:03:23.320 --> 0:03:26.480 the Biden administration made this announcement today and that, you know, 0:03:26.520 --> 0:03:30.120 despite early speed bumps where it seems to be like 0:03:30.200 --> 0:03:34.600 we are on a relatively good trajectory here. Yeah. So, um, 0:03:34.720 --> 0:03:37.840 that's a great question, you know, on on doximity, what 0:03:37.880 --> 0:03:39.360 we're seeing is, you know, we have the advantage of 0:03:39.400 --> 0:03:42.280 being able to see the conversations among hundreds of thousands 0:03:42.280 --> 0:03:46.000 of physicians, and what we're seeing is a general belief 0:03:46.120 --> 0:03:49.880 that with the new vaccines coming online, with Astra Zeneca 0:03:50.000 --> 0:03:53.120 and some of the other producers UM bringing on supply 0:03:53.200 --> 0:03:55.920 of vaccine UM, that we should be able to make 0:03:55.920 --> 0:03:58.800 a dent over the next several weeks to months with 0:03:59.040 --> 0:04:01.840 just an increase in supply. So that's the hope. But 0:04:01.920 --> 0:04:04.920 as they say, um, you know, vaccines don't prevent the illness. 0:04:05.040 --> 0:04:08.200 Vaccination does, and um, so it is going to still 0:04:08.200 --> 0:04:11.800 be incumbent on all those local jurisdictions and health plans 0:04:11.800 --> 0:04:14.080 and insurance companies and everybody pitching in to be able 0:04:14.120 --> 0:04:16.760 to get those vaccines and everybody's arms. Dr Alpern, are 0:04:16.800 --> 0:04:19.960 you in favor of dose stretching policies, so stretching out 0:04:19.960 --> 0:04:24.320 the interval between the first and second doses. Yeah, so 0:04:24.360 --> 0:04:26.719 there's been a lot of discussion around that. Um, that's 0:04:26.760 --> 0:04:29.120 not something that I'm absolutely an expert on. I I 0:04:29.839 --> 0:04:34.400 believe I follow what's being um uh you know, broadcast 0:04:34.480 --> 0:04:37.320 and written down by the CDC, and at this point 0:04:37.400 --> 0:04:39.479 that is not something that's it's in favor. And I 0:04:39.480 --> 0:04:43.160 know that there's a lot of experts and vaccines who 0:04:43.200 --> 0:04:46.240 are having a very um uh you know, robust discussion 0:04:46.279 --> 0:04:49.080 about this, and really for my position, UM, as a 0:04:49.120 --> 0:04:52.160 person who is delivering care, what I would basically do 0:04:52.279 --> 0:04:56.200 is just really follow their guidance. What about schools and 0:04:56.360 --> 0:05:00.960 opening schools, Yeah, opening schools is um is obviously on 0:05:01.000 --> 0:05:05.359 the forefront of every everybody's mind and every parent's mind. Um. 0:05:05.400 --> 0:05:07.719 You know what we really need to do for schools 0:05:07.800 --> 0:05:10.480 is getting is you know, get our teachers vaccinated. Um. 0:05:10.520 --> 0:05:12.560 And I know that a lot of places are doing 0:05:12.560 --> 0:05:14.520 that as well. UM. I know there is a lot 0:05:14.600 --> 0:05:18.960 of data to suggest that bringing people bringing kids back 0:05:18.960 --> 0:05:22.440 to schools. UM is actually very you know, a lot 0:05:22.520 --> 0:05:25.280 safer than than people may think. UM. But I do 0:05:25.360 --> 0:05:28.159 know that uh, um, you know, getting teachers and other 0:05:28.200 --> 0:05:31.400 school personnel vaccinated is really the key to that whole process. 0:05:32.240 --> 0:05:34.760 I want to just end talking a little bit about 0:05:35.160 --> 0:05:37.920 variants here. UM. How concerned are you about the spread 0:05:38.000 --> 0:05:41.600 of mutations variants that we've seen already exist here in 0:05:41.600 --> 0:05:45.600 the United States? UM, So I think the variant UM 0:05:46.040 --> 0:05:50.039 is situated that the issue with variances is interesting. So 0:05:50.400 --> 0:05:54.240 most of the variants that we've seen don't seem to show, um, 0:05:54.320 --> 0:05:57.320 an increased virulence or severity. What they show is an 0:05:57.320 --> 0:06:02.440 increasability to you know, cause UM contagion and so UM. 0:06:02.480 --> 0:06:05.400 I think all the studies so far that have been 0:06:05.440 --> 0:06:08.480 done on the existing vaccines show that these vas existing 0:06:08.560 --> 0:06:12.640 vaccines are effective. UM. But but I think that the UM, 0:06:12.800 --> 0:06:14.600 I think that we're gonna have to wait and see. 0:06:14.680 --> 0:06:17.320 Obviously this is very new to everybody else as well. UM. 0:06:17.360 --> 0:06:19.279 I do know that patients are concerned, and I do 0:06:19.360 --> 0:06:21.760 know that patients are asking all about these kinds of things, 0:06:22.080 --> 0:06:23.280 and I think what they need to do is to 0:06:23.320 --> 0:06:26.280 try to interact with their physicians by any means necessary, 0:06:26.800 --> 0:06:29.680 make an appointment or get a tellhelp, got it, got it, 0:06:29.680 --> 0:06:32.800 gotta run. Dr Peter Alper and Vice President Do Simity 0:06:32.800 --> 0:06:36.040 on the phone from San Francisco. This is Bloomberg Business 0:06:36.160 --> 0:06:39.960 Week with Carol Masser and Bloomberg Quick Takes Tim Stinovic 0:06:40.400 --> 0:06:43.039 on Bloomberg Radio. No doubt about it. Tim. A top 0:06:43.080 --> 0:06:46.840 story on this Tuesday, the energy crisis, gribbling power grids 0:06:46.920 --> 0:06:51.040 across the US and we're seeing blackouts leaving about finally 0:06:51.200 --> 0:06:55.040 in customers without electricity. Uh, it's all because of unprecedented 0:06:55.040 --> 0:06:57.920 coal weather across Texas and other states that are normally 0:06:57.960 --> 0:06:59.960 pretty warm this time of year. And get this, there 0:07:00.040 --> 0:07:03.479 are global links to this. Briank Sullivan is Bloomberg News 0:07:03.520 --> 0:07:05.599 Weather reporter and he joins us now on the phone 0:07:05.960 --> 0:07:09.120 from Boston. M Brian, Let's start out with just the 0:07:09.160 --> 0:07:14.040 big question, right, like, how did this happen? The wet weatherwise? 0:07:14.160 --> 0:07:16.480 Why is it so cold in so many parts of 0:07:16.480 --> 0:07:18.760 the country that doesn't don't usually see temperatures like this. 0:07:19.840 --> 0:07:22.560 So during the first week of January, there was a 0:07:22.760 --> 0:07:25.320 burst of warm air over the North Pole and that 0:07:25.360 --> 0:07:30.760 may sound um a bit of a paradox. But warm 0:07:30.800 --> 0:07:32.800 air will come in over the north pole, and what 0:07:32.920 --> 0:07:37.480 this does is it displaces the colder air up there. 0:07:37.600 --> 0:07:39.720 The you have the pole of vortex, which is like 0:07:39.720 --> 0:07:41.520 a girdle of wind that keeps the cold in the 0:07:41.560 --> 0:07:44.720 north pole. This warm air will weaken that and it 0:07:44.800 --> 0:07:47.440 allows the cold to spill out. So this has been 0:07:47.520 --> 0:07:49.680 weeks in the making, but it's you know, it finally 0:07:49.720 --> 0:07:51.320 got here at the end of last week and it's 0:07:51.360 --> 0:07:54.800 really dug in now, all right. So that on top 0:07:54.880 --> 0:07:58.760 of how come the power grid couldn't deal with it? Well, 0:07:58.760 --> 0:08:00.880 that's good, that's a good question. And that's one of 0:08:00.920 --> 0:08:02.920 the ones that things that a lot of people are 0:08:02.920 --> 0:08:06.440 looking into. And part of it is that the cold 0:08:06.600 --> 0:08:10.600 was just so severe when it got into Texas. Um 0:08:10.640 --> 0:08:13.800 a lot of these places just aren't equipped in you know, 0:08:13.880 --> 0:08:18.320 the infrastructure isn't equipped to deal with such bitter cold. 0:08:18.400 --> 0:08:21.720 You know, in the north or the northern Great Plains 0:08:21.760 --> 0:08:24.240 for instance, they're used to see and temperatures go down 0:08:24.280 --> 0:08:28.080 to single digits and whatnot. But in Texas now you 0:08:28.120 --> 0:08:31.040 have equipment failing and you know, it just turned into 0:08:31.080 --> 0:08:34.560 a cascade. So is there a climate change connection here? 0:08:34.720 --> 0:08:38.280 Is it too early to tell. Um, It's more a 0:08:38.400 --> 0:08:40.280 question of too early to tell. I mean, there are 0:08:40.440 --> 0:08:43.280 people who study the Arctic, and they've been studying the 0:08:43.559 --> 0:08:45.320 warming up there, the fact that there's a lack of 0:08:45.360 --> 0:08:48.280 sea ice and uh, for instance Judico and at a 0:08:48.559 --> 0:08:51.480 R and he says that there's definitely a climate change 0:08:51.880 --> 0:08:55.560 connection here. Other scientists want to look at it longer, 0:08:55.640 --> 0:08:59.480 want to take more studies before they make a commitment. Hey, bron, 0:08:59.520 --> 0:09:01.760 what was to ask you about? Is the Texas Railroad 0:09:01.760 --> 0:09:06.120 Commission g Jim Right or a commissioner. He told Bloomberg 0:09:06.160 --> 0:09:09.880 TV that renewable energy sources such as wind turbines are 0:09:09.920 --> 0:09:14.760 diverting resources away from reliable fossil fuel sources like natural gas. 0:09:14.800 --> 0:09:17.280 So I want to ask you you study this is 0:09:17.320 --> 0:09:23.120 alternative energy sources partly to blame. We have a story 0:09:23.160 --> 0:09:26.560 on a system right now by our colleagues, and I 0:09:26.880 --> 0:09:29.280 you know that that wasn't The conclusion I drew after 0:09:29.320 --> 0:09:33.640 reading the story was that, you know, I I didn't 0:09:33.679 --> 0:09:37.079 really see that in their reporting, So I wouldn't I 0:09:37.080 --> 0:09:39.360 wouldn't want to comment on that further. Is it more 0:09:39.440 --> 0:09:42.480 that the power grid problems and limitations and aging of 0:09:42.720 --> 0:09:44.520 you know, which is not a new story. Brian, you 0:09:44.559 --> 0:09:47.200 know this well, you know, is it just I mean, 0:09:47.200 --> 0:09:50.840 we've been talking about this for years, for decades, right, Well, 0:09:50.840 --> 0:09:53.120 I mean, you know it's not just Texas either. I 0:09:53.160 --> 0:09:56.959 mean we're all the summer where it was extreme temperatures 0:09:56.960 --> 0:09:59.160 in the other direction, hot weather that caused all these 0:09:59.160 --> 0:10:02.959 problems in calif Fornia where they had issues, and there 0:10:02.960 --> 0:10:05.280 have been other issues in the Northeast as well. I 0:10:05.440 --> 0:10:07.960 believe in Long Island a few years ago had some 0:10:08.040 --> 0:10:11.440 severe issues out to some severe weather events. So I think, 0:10:11.559 --> 0:10:14.600 you know, we're seeing the chickens are coming home to roost. 0:10:14.640 --> 0:10:17.520 I guess is what I would say, Hey, Brian, Um, 0:10:17.600 --> 0:10:22.720 what needs to happen with the grid, with infrastructure in California, 0:10:22.760 --> 0:10:24.839 in Texas and other parts of the country to make 0:10:24.880 --> 0:10:27.720 sure that this type of thing doesn't keep happening. The 0:10:27.760 --> 0:10:29.760 scientists tell me, we have to accept the fact that 0:10:29.800 --> 0:10:32.400 we live in a changing climate, in a changing world, 0:10:32.480 --> 0:10:35.079 and we have to prepare for it. Um. Insurers tell 0:10:35.120 --> 0:10:36.640 me this as well. I talked to a lot of 0:10:36.760 --> 0:10:39.440 different insurance companies and they're always saying the same thing. 0:10:40.120 --> 0:10:43.480 The world is changing. Its changing at a very fast rate. 0:10:43.559 --> 0:10:46.280 And we have to prepare for it. Um. Every insurer 0:10:46.320 --> 0:10:49.000 I ever talked to they say, prepare, prepare, prepare, prepare, 0:10:49.440 --> 0:10:52.600 And you know, none of them dispute climate change. They 0:10:52.640 --> 0:10:55.400 say that it's coming, it's here, it's now, and it's 0:10:55.400 --> 0:10:57.480 a problem. It's why I really climate change. For such 0:10:57.480 --> 0:10:59.080 a long time people are like, well, it's you know, 0:10:59.160 --> 0:11:02.200 not a financial story, it's not an economic story. And 0:11:02.480 --> 0:11:05.120 yes it is, and we have definitely seen it, you know, Brian, 0:11:05.200 --> 0:11:07.480 just quickly over the last few years, how much so 0:11:07.600 --> 0:11:10.160 it is. Oh, I totally agree with you. I mean, 0:11:10.200 --> 0:11:14.760 I think the climate change is a financial story and 0:11:14.760 --> 0:11:17.080 to look at it from any differently is the wrong 0:11:17.240 --> 0:11:19.960 concon to take, all right, because it's going to affect 0:11:19.960 --> 0:11:22.360 the banks and everyone else. Totally all right, Brian, thank 0:11:22.400 --> 0:11:24.640 you so much. We'll appreciate your reporting. Brian K. Sullivan 0:11:25.160 --> 0:11:27.640 of Bloomberg News joining us on the phone from Boston. 0:11:28.240 --> 0:11:31.840 You're listening to Bloomberg Business Week with Carol Messer and 0:11:31.920 --> 0:11:36.560 Bloomberg Quick Takes Tim Stanovic on Bloomberg Radio. You're listening 0:11:36.559 --> 0:11:38.840 to Bloomberg Business Week Carol mass along with Tim Stanovic. 0:11:38.920 --> 0:11:42.520 Impossible foods cutting It suggested retail prices by twent at 0:11:42.600 --> 0:11:46.000 US grocery stores. This move seen as key by the 0:11:46.040 --> 0:11:48.720 company's president Tim to get people to try the brand 0:11:48.720 --> 0:11:52.960 and keep on coming back. That's disclosure. Two pounds over 0:11:52.960 --> 0:11:56.640 the weekend. Two pounds all right, So let's get into 0:11:56.679 --> 0:11:59.440 it and let's see what he has to say. Impossible Foods. 0:11:59.440 --> 0:12:02.400 President A. Woodside is with us, joining us on the 0:12:02.480 --> 0:12:05.320 phone in Menlo Park, California. Denist by the way, former 0:12:05.360 --> 0:12:09.000 CEO of Dropbox, was the CEO of Motorola Mobility, put 0:12:09.000 --> 0:12:13.040 in charge of leading its transition after its acquisition by Google. Dennis, 0:12:13.120 --> 0:12:15.160 So nice to have you here with us. How are 0:12:15.200 --> 0:12:20.120 you and tell us about the strategy. What was the catalyst? Well, 0:12:20.160 --> 0:12:22.240 first of all, thanks for having me Tim, thanks for 0:12:22.280 --> 0:12:27.040 being a customer. So the the catalyst. Look, you know, 0:12:27.120 --> 0:12:31.959 our mission is to completely replace animals in your diet, 0:12:32.080 --> 0:12:33.680 and for us to do that, we have to produce 0:12:33.679 --> 0:12:35.880 the product that tastes great. We have that, but it 0:12:35.920 --> 0:12:38.640 has to be priced right and people consumers are very 0:12:38.640 --> 0:12:41.040 price sensitive when it comes to their meat and the 0:12:41.080 --> 0:12:43.960 meats that they purchased in grocery stores. We've scaled so 0:12:44.080 --> 0:12:46.199 quickly over the last year. We've done from two hundred 0:12:46.240 --> 0:12:49.319 grocery stores over seventeen thousand. That we've been able to 0:12:49.320 --> 0:12:51.280 get a lot of efficiencies in our supply chain and 0:12:51.800 --> 0:12:54.680 uh drive our costs down. So we we've passed those 0:12:54.720 --> 0:12:57.960 costs onto our consumers in the form of price decrease. 0:12:58.280 --> 0:12:59.760 We don't think this will be our last we have 0:12:59.800 --> 0:13:02.280 to peat with animal animal products, that we're going to 0:13:02.360 --> 0:13:05.120 do that. So when will it be as cheap as 0:13:05.400 --> 0:13:09.440 ground beef? Well, if you think about what we what 0:13:09.520 --> 0:13:11.600 we do. We take plants and we turn them directly 0:13:11.640 --> 0:13:14.840 into meat. And what the animal does, it's the animals 0:13:14.920 --> 0:13:18.640 kind of an intermediary that uh that that requires a 0:13:18.640 --> 0:13:21.160 lot more land, a lot of water, a lot of labor, 0:13:21.240 --> 0:13:25.240 a lot of transportation oil gas to move cows around, 0:13:25.280 --> 0:13:28.160 that sort of thing. So in theory our products should 0:13:28.160 --> 0:13:32.080 be much lower priced than than cows over time, but 0:13:32.160 --> 0:13:34.480 it just takes time for us optimize the supply chain 0:13:34.520 --> 0:13:37.920 to scale up. Uh. You know, animal based meat today 0:13:37.960 --> 0:13:40.120 is less than one percent of total meat consumed in 0:13:40.160 --> 0:13:43.120 the US. But that's gonna change pretty rapidly. And as 0:13:43.120 --> 0:13:45.319 that does, the cost for the whole industry, including ups 0:13:45.320 --> 0:13:47.000 will come down and we'll be able to compete much 0:13:47.040 --> 0:13:50.120 more aggressively on price. But timeline wise, though, is there 0:13:50.160 --> 0:13:52.640 are you thinking you know in years that you can 0:13:52.679 --> 0:13:54.760 count on one hand, or or is this like a 0:13:54.800 --> 0:13:58.920 decades long progression absolutely years that you can count on 0:13:58.920 --> 0:14:01.320 one hand. There are poor of our product now or 0:14:01.360 --> 0:14:03.920 elements of our product now that are are at the 0:14:03.960 --> 0:14:06.319 cost of the cow. But there's a lot of Uh, 0:14:06.360 --> 0:14:09.599 there's a lot of processing costs and transportation costs, packaging, 0:14:09.640 --> 0:14:12.840 all those things that we have not yet fully optimized 0:14:12.880 --> 0:14:15.360 and that take that just take time and scale to 0:14:15.440 --> 0:14:19.240 get right. So the packaging, what what the actual products 0:14:19.240 --> 0:14:21.960 shows up in on shelf, that's expensive. But as you 0:14:21.960 --> 0:14:24.320 get bigger that those costs come down. So that's what 0:14:24.360 --> 0:14:25.360 I was going to ask you. Is it just a 0:14:25.400 --> 0:14:29.080 case of when you're selling more Dennis, the math just changes. 0:14:29.160 --> 0:14:31.840 When you're selling more product, the cost go down. Is 0:14:31.840 --> 0:14:33.360 that what it comes down to? Or is it is 0:14:33.400 --> 0:14:35.160 it a case of being able to squeeze even more 0:14:35.200 --> 0:14:39.240 costs out of the current systems. It's a little of both. 0:14:39.280 --> 0:14:40.640 So what we do, what we've been able to do 0:14:40.680 --> 0:14:43.000 over the last year is go back to our suppliers 0:14:43.720 --> 0:14:46.720 UH and negotiate better prices. Because we're we're driving a 0:14:46.720 --> 0:14:49.400 big part of their growth. We've also been able to 0:14:49.440 --> 0:14:52.000 get better utilization out of our factory, so we're running 0:14:52.000 --> 0:14:55.000 three shifts today instead of two. Uh. And you advertize 0:14:55.000 --> 0:14:57.520 that fixed costs of the factory over more products and 0:14:57.560 --> 0:14:59.640 that allows you to take your take your price down 0:14:59.640 --> 0:15:01.960 over time time. Hey, I'm curious see that stopping, that's 0:15:01.960 --> 0:15:04.040 just going to continue. I'm curious to Dennis, have you 0:15:04.080 --> 0:15:06.560 guys done some focus groups with customers are just like, 0:15:06.640 --> 0:15:09.000 it's too expensive right now. We just I can't do it. 0:15:09.040 --> 0:15:12.560 I want to do, but I can't. So people, So 0:15:12.640 --> 0:15:17.240 first of all, over people who are trying impossible for 0:15:17.280 --> 0:15:20.000 the first time, they're coming their meat eaters, so so 0:15:20.040 --> 0:15:24.200 they are they are substituting impossible for for all kinds 0:15:24.240 --> 0:15:27.360 of meat products, not just ground beef. But and when 0:15:27.360 --> 0:15:29.000 we when they try it, the number one thing that 0:15:29.160 --> 0:15:30.960 they say they love about the product is the taste. 0:15:30.960 --> 0:15:33.960 It tastes just like beefs defa same nutritional profiles beef. 0:15:34.200 --> 0:15:36.040 The one thing that they say that they don't like 0:15:36.120 --> 0:15:38.880 as much as the price, and that is absolutely a 0:15:39.000 --> 0:15:43.280 barrier to to repeat and repeat purchase and frequency of purchase. 0:15:43.480 --> 0:15:45.200 But we can get the price right. You know, that's 0:15:45.200 --> 0:15:47.680 a pretty pretty obvious lever to pull to to grow 0:15:47.720 --> 0:15:50.200 our our volume and continue to scale. How do the 0:15:50.280 --> 0:15:53.880 habits of how people are are eating this type of product, 0:15:53.920 --> 0:15:58.240 how do they change or have they changed during the pandemic. Well, 0:15:58.360 --> 0:16:00.920 you know, so a year ago we weren't even available 0:16:00.960 --> 0:16:03.920 in retail, and when the pandemic hit, we realized that 0:16:04.080 --> 0:16:07.040 the retailer, we were available in two stores. We realized 0:16:07.080 --> 0:16:09.880 that we needed to scale up really quickly. And what 0:16:10.040 --> 0:16:13.480 we noticed was that consumers we were uh flocking to 0:16:13.720 --> 0:16:16.360 plant based products. They were cooking more at home, and 0:16:16.400 --> 0:16:18.320 they were willing to try something different. They had a 0:16:18.400 --> 0:16:19.880 little maybe a little bit more time to cook or 0:16:19.960 --> 0:16:22.760 they were cooking and in the past they were would 0:16:22.800 --> 0:16:25.360 have been eating out. Uh, So they were open to 0:16:25.520 --> 0:16:28.600 trying new products. And that's why our sales have really 0:16:28.680 --> 0:16:31.480 taken off at retail. And what we're also noticing, obviously 0:16:31.520 --> 0:16:35.760 there's a lot more delivery activity. Consumers buying impossible on 0:16:35.840 --> 0:16:39.560 digital platforms, whether it's direct delivery from grocery through instatcart 0:16:39.680 --> 0:16:43.840 or they're buying uh finished uh entrees through dordash. So 0:16:44.280 --> 0:16:46.680 so we're seeing growth across all of those areas. The 0:16:46.720 --> 0:16:49.440 one area that's obviously been impacted quite a bit are 0:16:49.480 --> 0:16:52.680 the smaller restaurants, which was really suffered. They talked us 0:16:52.720 --> 0:16:56.920 to Dennis about collaborations. I'm curious what lasting traction you 0:16:57.000 --> 0:17:00.200 are finding from some of the collaborations and partnerships that 0:17:00.360 --> 0:17:02.760 you have been doing. We know all the folks in 0:17:02.800 --> 0:17:05.639 kind of the alt food space have been linking up 0:17:05.680 --> 0:17:09.000 with the likes of whether it's a Taco Bell, McDonald's 0:17:09.040 --> 0:17:12.280 and you guys, I know had teamed up last year, No, 0:17:12.359 --> 0:17:14.080 in twenty nineteen, I think it was with Burger King 0:17:14.160 --> 0:17:17.000 for Impossible Whoppers. So I'm just curious how those are 0:17:17.520 --> 0:17:21.159 helping you in your mission. Yeah, so we we have 0:17:21.480 --> 0:17:25.440 apostles now available pretty broadly in the U. S p K. 0:17:26.160 --> 0:17:28.680 You know you mentioned Burger King, Whitecastle, rever Rob and 0:17:28.760 --> 0:17:32.760 Kidoga are just a handful. We added Starbucks Starbucks Breakfast 0:17:32.760 --> 0:17:35.399 Sandwich in the middle of the pandemic in June of 0:17:35.520 --> 0:17:38.760 last year, and we've and we've seen that product do 0:17:38.880 --> 0:17:43.680 incredibly well, exceeding both of our expectations. So these these 0:17:43.760 --> 0:17:47.440 partnerships are very important, and every restaurant operator is realizing 0:17:47.520 --> 0:17:49.560 they need to have a plant based meat option on 0:17:49.600 --> 0:17:53.280 the menu. Consumers are are asking for for for choices 0:17:53.320 --> 0:17:56.400 and asking for alternatives, and so it's at the top 0:17:56.440 --> 0:17:58.960 of the top of agenda of every executive in the 0:17:59.280 --> 0:18:02.240 UH in the two SR space that I that I 0:18:02.359 --> 0:18:04.879 talked to for sure, UH and those who don't have 0:18:05.000 --> 0:18:08.040 a plant based meat option now are absolutely considering one. 0:18:08.400 --> 0:18:12.000 And Dennis, what is the difference between beyond meat and 0:18:12.119 --> 0:18:16.359 impossible foods in terms of in terms of taste of 0:18:16.480 --> 0:18:19.320 In terms of taste of product, I should say, yeah. 0:18:19.320 --> 0:18:21.680 The two things that consumers tell us is, first of all, 0:18:21.760 --> 0:18:25.040 taste our product taste just like me. And survey after 0:18:25.119 --> 0:18:28.440 survey shows that the the liking scores of preference scores 0:18:28.520 --> 0:18:31.840 for our product versus animal based meat are relatively even, 0:18:31.880 --> 0:18:33.720 so people have a hard time telling the too apart. 0:18:34.080 --> 0:18:37.040 The second thing that that steps tell us is the 0:18:37.240 --> 0:18:40.920 product handles just like ground beef. The color when it 0:18:41.000 --> 0:18:44.119 comes in raw, the way it transitions from a pink 0:18:44.480 --> 0:18:47.720 or a reddish raw state to a cooked state, the 0:18:47.800 --> 0:18:49.880 way it sizzles, the way it smokes, all those things, 0:18:49.960 --> 0:18:53.280 and and and that's UH mostly due to the intellectual 0:18:53.359 --> 0:18:57.000 property we have around an ingredient called hem which is 0:18:57.040 --> 0:18:59.800 found in every animal, but we've been able to, uh 0:19:00.080 --> 0:19:04.280 to to ferment it from plants and use that as 0:19:04.400 --> 0:19:07.680 the key ingredient that aids in the transition of of 0:19:07.840 --> 0:19:10.520 the product and the color of the product. So it's 0:19:10.560 --> 0:19:14.320 meteor like, it's more like me. It's much meteor That's 0:19:14.359 --> 0:19:16.360 what we're trying to do. We're we are simply trying 0:19:16.400 --> 0:19:20.360 to replicate the animal in every sense, the nutritional profile 0:19:20.440 --> 0:19:23.320 over time, better the animal. We need to beat the 0:19:23.560 --> 0:19:26.600 beat the cows. What we say, well, and I have 0:19:26.680 --> 0:19:29.000 to say that in our lunch offerings here at Bloomberg, 0:19:29.080 --> 0:19:33.920 like often comes up some alternatives, right, and I'm not 0:19:34.000 --> 0:19:36.920 quite sure who who they are, um so, so I 0:19:36.960 --> 0:19:39.040 can't speak to that. What I am curious though, to 0:19:39.200 --> 0:19:43.040 Dennis is you guys have been spending a lot on 0:19:43.320 --> 0:19:45.399 R and D and you plan to double the size 0:19:45.400 --> 0:19:48.040 of your R and D team. From what I understand, 0:19:48.560 --> 0:19:50.840 what's the R and D focusing on and does it 0:19:50.920 --> 0:19:53.880 include anything like three D meat, which is something we've 0:19:53.920 --> 0:19:56.520 started to talk about. You hear the Bloomberg Yeah, yeah, 0:19:56.960 --> 0:19:59.960 so so so what we're trying to do is replicate 0:20:00.200 --> 0:20:04.200 every animal protein that you consume. Uh, there's well over 0:20:04.240 --> 0:20:07.399 a trillion pounds of animal protein consumed every year, So 0:20:07.480 --> 0:20:10.280 this market is absolutely massive. It's one of the largest 0:20:10.440 --> 0:20:13.800 technology markets, if you call the technology UH in the world, 0:20:14.080 --> 0:20:17.200 and there hasn't been a whole lot of innovation. We're 0:20:17.240 --> 0:20:20.320 eating kind of the same products our grandparents date prepared 0:20:20.400 --> 0:20:22.680 kind of the same way, with the same nutritional profile. 0:20:23.240 --> 0:20:26.760 So we're we're one of the first companies that's focused 0:20:26.800 --> 0:20:30.400 at the molecular level on re engineering UH meat all 0:20:30.480 --> 0:20:32.840 from plats and so that's starting with ground beef because 0:20:32.880 --> 0:20:36.920 it's such an iconic product for most Americans. But focusing 0:20:36.960 --> 0:20:38.880 on pork. We have a pork product that we shared 0:20:38.920 --> 0:20:43.040 at c Yes last year. UH we sausages. We have 0:20:43.880 --> 0:20:49.399 lab prototypes of basically every meat imaginable, including steak UH 0:20:49.560 --> 0:20:51.600