Artificial meat producer Beyond Meat Inc and PepsiCo said on Tuesday they would form a joint venture to develop and market snacks and beverages made from plant-based proteins.
The venture will allow Beyond Meat to reach more consumers by entering new product categories and distribution channels, said Ethan Brown, Beyond Meat Founder and CEO. It will also broaden PepsiCo's portfolio of healthy food.
Plant-based meat alternatives, such as burger patties and sausages, have become increasingly popular in recent years as health-conscious consumers seek to shift away from their livestock-based diets. The trend has accelerated with the outbreak of the coronavirus pandemic.
"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.
The joint 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, the companies said in a joint statement. Financial terms of the partnership were not disclosed. Joint venture operations will be managed through the newly created entity The PLANeT Partnership, LLC (TPP).
Beyond Meat is one of the fastest-growing food companies in the U.S., offering a portfolio of plant-based meats. Founded in 2009, Beyond Meat is listed on the Nasdaq and has entered partnerships with restaurant and food chains including Pizza Hut, Dunkin’, Taco Bell, Starbucks and McDonald’s.
Besides its namesake beverage, PepsiCo is the maker of Quaker Oats, Doritos chips and Gatorade.