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Beyond Burger’s Beyond Meat Inc. vegetable burger patties are cooked in 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 substitutes.
Shares of Beyond have jumped more than 27% in trading before the news goes on the market, while shares of Pepsi are up about 1%.
The partnership gives Beyond, a newcomer to the food world, a chance to leverage Pepsi’s production and marketing expertise for new products. For its part, Pepsi can deepen its investment in the increasingly crowded plant-based categories while working with one of the leading creators of meat substitutes.
Beyond Meat controls about 13% of the meat substitutes category in the United States, according to Jefferies’ estimates.
“PepsiCo is the perfect partner for us in this exciting company of global reach and significance,” Beyond Meat CEO Ethan Brown said in a statement.
The operations will be managed by a limited liability company called The PLANeT Partnership. Financial terms were not disclosed.
The partnership is also helping Pepsi meet its sustainability goals. Last year, the company signed the United Nations pledge, pledging to set science-based emission reduction targets. A 2019 UN report found that the food system contributes 37% of greenhouse gas emissions. In recent years, Pepsi has also attempted to reduce the amount of sugar in its products and add healthier snacks and drinks to its wallet.
PepsiCo shares have been roughly flat over the past year, giving it a market value of $ 196 billion. The food and beverage giant saw higher sales during the pandemic, thanks to consumer stocking and less exposure to events away from home than rival Coca-Cola.
As of Monday’s close, Beyond’s inventory has risen more than 32% last year, despite the blow to its business from the coronavirus pandemic, which has hurt its restaurant sales. The company has a market value of $ 9.95 billion.
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