Beyond Burat Inc.’s Beyond Burger Inc. plant, cooked beyond a skillet.
Yuriko Nakao | Getty Images
Beyond Meat and PepsiCo announced Tuesday that they have formed a joint venture to create, produce and market snacks and beverages with plant-based agents.
Shares of Beyond jumped as high as 16% in pre-sale trading on the news, while Pepsi stock rose 1%.
The partnership gives Beyond, a newcomer to the world of food, the opportunity to experience Pepsi’s product and marketing for new products. For its part, Pepsi can deepen its investment in plant-based sectors, which are becoming increasingly dense, while working with one of the leading meat producers.
Beyond Meat controls about 13% of the meat options segment in the U.S., according to estimates from Jefferies.
“PepsiCo represents our best partner in this exciting endeavor, one of global reach and importance,” Beyond Meat CEO Ethan Brown said in a statement.
Operations will be managed through a corporate body with limited responsibility called the PLANeT Partnership. No financial terms have been disclosed.
The partnership will also help Pepsi work towards sustainability goals. Last year, the company signed a United Nations pledge, pledging to set science-based emissions reduction targets. A 2019 report from the UN found that the food system contributes to 37% of greenhouse gas emissions. In the last few years, Pepsi has also been trying to cut down on the amount of sugar in its products and add healthier snacks and drinks to their portfolio.
Shares of PepsiCo have been relatively flat over the past year, giving it a market value of $ 196 billion. The food and drink giant has seen higher sales during the pandemic, thanks to consumer gatherings and less visibility for events away from home than rival Coca-Cola.
As it approached Monday, Beyond stocks have risen more than 32% in the past year, despite a blow to the industry with the coronavirus pandemic, which has damaged past sold to restaurants. The company has a market value of $ 9.95 billion.