PepsiCo and meat substitutes firm Beyond Meat have formed a joint venture to develop and sell snacks and drinks made from plant-based protein.
The newly-created ‘The PLANeT Partnership’ will aim to leverage Beyond Meat’s technology in plant-based protein development and PepsiCo’s marketing and commercial capabilities to create new lines that tap into growing consumer demand for vegan products.
As well as its namesake soft drink, PepsiCo owns brands such as Walkers, Lays, Quaker and Doritos. Like other major food manufacturers, it has been looking to expand its portfolio towards more health-focused snacks and beverages.
“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,” said Ram Krishnan, PepsiCo Global Chief Commercial Officer.
“Beyond Meat is a cutting-edge innovator in this rapidly growing category, 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.”
Beyond Meat’s burger patties and sausages have been amongst the leaders in the surge in interest in plant-based alternatives. The firm has struck retail deals with the likes of Walmart and partnerships with restaurants chains including KFC, Taco Bell, and Starbucks.
Ethan Brown, Beyond Meat Founder and CEO, commented: “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.”
Ramsey Baghdadi, and analyst at GlobalData, said the partnership will be beneficial for both brands.
“Consumer demand for plant-based products is large enough to make an impact in sales, as the plant-based alternative industry continues to grow,” he said.
“PepsiCo’s decision to widen its existing selection of plant-based snacks will be a game-changer in the long-term, as more consumers naturally gravitate towards the trend. In fact, as of December, one out of five (22%) US consumers consider ethically sourced ingredients to be their top priority now.
“What’s more, Beyond Meat is already a household name in the plant-based industry, offering Pepsi additional leverage over its competitors – namely Coca-Cola – should the company also enter the industry. On the other hand, the partnership will give Beyond Meat the opportunity to grow on an international level and diversify its product offerings into snacks and drinks. It’s a win-win.”
