Beyond Meat stocks rose 31 percent on Tuesday. This is thanks, in part, to the announcement that the California-based brand partnered with PepsiCo. The two companies will develop an array of vegan foods and drinks. The venture has been dubbed The PLANeT Partnership.
Per a press release, the joint project will leverage Beyond Meat’s leading technology in plant-based protein development. It will also use PepsiCo’s marketing and commercial capabilities to create and scale new snack and beverage options made from plant-based protein.
“We are thrilled to formally join forces with PepsiCo in The PLANeT Partnership, a joint venture that unites the tremendous depth and breadth of their distribution and marketing capabilities with our leading innovation in plant-based protein. We look forward to together unlocking new categories and product lines that will inspire positive choices for both people and planet,” Ethan Brown, Beyond Meat Founder and CEO, said in a statement. “PepsiCo represents the ideal partner for us in this exciting endeavor, one of global reach and importance.”
CNBC notes that Beyond Meat controls about 13 percent of the meat alternatives category in the United States. That figure is likely to rise given this venture with PepsiCo. The plant-based meat producer will be able to use Pepsi’s production and marketing expertise to create and develop new vegan products.
The PepsiCo team, which has made an effort to produce its dozens of products in more sustainable ways, is equally excited about the partnership.
“Plant-based proteins represent an exciting growth opportunity for us, a new frontier in our efforts to build a more sustainable food system and be a positive force for people and the planet, while meeting consumer demand for an expanded portfolio of more nutritious products,” Ram Krishnan, PepsiCo’s Global Chief Commercial Officer added.
“Beyond Meat is a cutting-edge innovator in this rapidly growing category,” he continued. “And we look forward to combining their unparalleled expertise with our world-class capabilities in brand-building, consumer insights and distribution to deliver exciting new options.”
The Beyond Meat and PepsiCo Partnership’s Impact on Sustainability
The new joint venture follows ongoing efforts by PepsiCo to help build a more sustainable food system. The company has made an effort to use sustainable ingredients. It has also revamped some of its production facilities around the world in an attempt to reduce its carbon footprint. A 2019 report from the UN found that the food system contributes to 37 percent of greenhouse-gas emissions.
PepsiCo installed a windmill at the Tropicana plant in Zeebrugge, Belgium. It will generate approximately 40 percent of that site’s total electricity consumption. It also procured more than 400 solar panels. These will help power the Quaker plant in Rotterdam, Netherlands. Earlier this month, the brand vowed to be carbon neutral by 2040. Though some environmental experts have questioned whether or not that’s achievable.
“Beyond Meat shares PepsiCo’s passion for creating products that are good for both people and the planet, using simple, plant-based ingredients with no GMOs or bioengineered ingredients,” the press release concluded.
What Vegan Products Will Beyond Meat and PepsiCo Create?
Neither Beyond Meat nor PepsiCo has hinted at the types of vegan products they intend to create with this partnership. But PepsiCo’s portfolio of brands might provide some clues.
The multinational corporation owns food brands including Sabra Hummus, Lay’s, Life cereal, and more. It also owns drink brands such as Pepsi, Naked Juice, Sierra Mist, and Lipton. Additionally, PepsiCo has made strategic acquisitions in this space, and owns brands such as Bare Snacks, BFY Brands, and SodaStream.
Founded in 2009, Beyond Meat produces the Beyond Burger and other meat analogs. These include the Beyond Meatball, which debuted in September 2020.
The growing brand has also partnered with companies across the globe to create dishes with plant-based meat. These include Starbucks in China and Yum China, which owns KFC, Pizza Hut, and Taco Bell. Earlier this month, Beyond Meat joined forces with Starbucks locations in the Middle East to introduce two plant-based breakfast sandwiches.
On an even larger scale, Beyond Meat is currently building a major production facility in China.