The plant-based protein trend continued to gather momentum this week, when Beyond Meat and PepsiCo announced a joint venture to sell snacks and drinks made from plant-based protein.
A WIN-WIN FOR TWO MAJOR PLAYERS
The PLANeT Partnership, LLC, is a joint venture to develop, produce, and market innovative snack and beverage products made from plant-based protein, per a press release from the companies. It will leverage Beyond’s technology in plant-based protein development, while utilizing PepsiCo’s marketing and commercial capabilities to create and scale new snack and beverage options.
Financial terms of the deal were not disclosed, but operations will be managed through a limited liability corporation: the aforementioned PLANeT Partnership.
PEPSICO FURTHERS SUSTAINABILITY EFFORTS
The new joint venture allows PepsiCo to continue its efforts to build a more sustainable food system. Just a few weeks ago, PepsiCo revealed its plans to cut carbon emissions by more than 40% by 2030 against its 2015 baseline, more than doubling its previous objective. If realized, the cuts would result in the reduction of over 26 million metric tons of greenhouse gas emissions.
“Plant-based proteins represent an exciting growth opportunity for us, a new frontier in our efforts to build a more sustainable food system,” said Ram Krishnan, PepsiCo Global Chief Commercial Officer.
BEYOND CONTINUES EXPANSION
Working with PepsiCo will give Beyond Meat a chance to continue expansion into the retail and grocery space while innovating with new products.
The news follows a year of massive growth for Beyond, whose products are now available at approximately 112,000 retail and foodservice outlets in 85 countries worldwide. Back in September, Beyond revealed it was expanding distribution at Walmart, the world’s largest retailer.
Beyond isn’t the only plant-based company partnering with another manufacturer to get ahead. One competitor, Hungry Planet, recently made a similar pact with Post Holdings, stipulating that it will work closely with Post’s foodservice and retail units to expand distribution of its plant-based meats.