Beyond Meat Inc.’s plant-based burgers Beyond Burger’s dishes are cooked in a pan.
Yariko Nakao | Getty Images
Beyond Meat and PepsiCo announced Tuesday that they formed a joint venture to create, produce and market breakfast and drinks with a plant-based alternative.
According to the news, Beyond’s shares rose by 16% in Premed Trading, while Pepsi’s stock rose 1%.
Beyond the partnership is a newcomer to the food industry, a chance to leverage Pepsi’s production and marketing expertise for new products. For its part, Pepsi could deepen its investment in plant-based categories, which are increasingly crowded, while working with one of the top creators of meat substitutes.
According to Jefferies estimates, about 13% of meat substitutes in the US control meat.
“PepsiCo is the ideal partner for us in this exciting endeavor, one of global reach and importance,” Beyond Meat CEO Ethan Brown said in a statement.
The operations will be managed through a limited liability corporation known as The Plan Partnership. Financial terms were not disclosed.
The partnership also helps Pepsi to work towards its sustainability goals. Last year, the company signed a United Nations pledge to set science-based emission reduction targets. The United Nations 2019 report found that the food system contributes 37% to greenhouse-gas emissions. In recent years, Pepsi has also been trying to cut down on the amount of sugar in its products and add healthy snacks and drinks to its portfolio.
PepsiCo’s shares are roughly flat compared to last year, giving it a market value of $ 196 billion. The food and beverage giant has seen higher sales during the epidemic than its rival, Coca-Cola, due to lower risk for consumer stockpiling and opportunities away from home.
As of Monday’s close, Beyond’s stock has risen by more than 32% in the past year, despite its business being rattled by the coronovirus epidemic, which hurt its sales to restaurants. The company has a market value of $ 9.95 billion.