Beyond Meat and PepsiCo are forming a joint venture to sell new plant-based snacks and drinks.
The companies are forming The PLANeT Partnership to develop, produce and market snack and beverage products made from plant-based protein. According to company statements, the venture will leverage Beyond Meat's technology in plant-based protein development and PepsiCo's marketing and commercial capabilities to create and scale new snack and beverage options. Financial terms of the partnership were not disclosed. Joint venture operations will be managed through the newly created entity The PLANeT Partnership, LLC.
"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."
For PepsiCo, the venture allows the company to plant its flag firmly into the meat alternatives market, which has grown rapidly. For Beyond Meat, the venture allows the company to expand its product lines and sell more product in the grocery sector.
"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," said Ethan Brown, Beyond Meat founder and CEO. "PepsiCo represents the ideal partner for us in this exciting endeavor, one of global reach and importance."
The new joint venture also follows longstanding efforts by PepsiCo to help build a more sustainable food system. Among the key pillars of that effort are using positive ingredients; expanding the company's portfolio of products that have been grown and made sustainably through tools and techniques like regenerative agriculture and net water- and carbon-neutral production plants; and making it easier for consumers focused on health and wellness to consume products on the go through innovations such as LAY'S oven baked chips (now in 23 markets around the world), Sabra Snack Cups, Alvalle ready-to-drink gazpacho, Quaker Breakfast flats and Gatorade Juiced.
In addition to organic innovation, PepsiCo has also made strategic acquisitions in this space, including companies such as Bare Snacks (maker of baked fruit and veggie chips), BFY Brands (maker of PopCorners snacks) and SodaStream, the world's leading sparkling water brand.
PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.
Beyond Meat Inc. is one of the fastest growing food companies in the United States, offering a portfolio of plant-based meats made from ingredients without GMOs, bioengineered ingredients, hormones, antibiotics or cholesterol. As of Sept. 26, 2020, Beyond Meat had products available at approximately 122,000 retail and food service outlets in over 80 countries worldwide.