- Alt-protein company Beyond Meat and beverages behemoth PepsiCo are joining forces to develop a range of plant-based snacks and drinks.
- Their joint venture, The PLANeT Partnership, is aimed at “increasing accessibility to plant-based protein around the world,” the two US companies said in a statement.
- Beyond Meat’s share price leapt 31% in pre-market trading following the announcement, while PepsiCo’s rose 1%.
Why it matters:
The deal could substantially enhance access to the consumer retail segment for Beyond Meat, which has seen a slump in restaurant sales amid the Covid-19 pandemic. The plant-based patty pioneer reported a 41% decrease in restaurant sales last quarter.
Partnering with PepsiCo will also give the Los Angeles-based company the opportunity to diversify into other product categories beyond straight-up meat analogs like burger patties and sausage links.
PepsiCo — which sells snack brands including Doritos, Lay’s, and Cheetos — has a well-established global presence with extensive production and marketing capabilities.
“We look forward to together unlocking new categories and product lines that will inspire positive choices for both people and planet,” said Beyond Meat founder and CEO Ethan Brown. “PepsiCo represents the ideal partner for us in this exciting endeavor, one of global reach and importance.”
For its part, the beverages giant can boost its sustainability credentials and gain an immediate foothold in the growing plant-based foods space. Beyond Meat commands about a 13% share of the US meat alternatives market, according to investment bank Jefferies.