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With Pepsi, Beyond Meat – which already offers plant-based alternatives to beef and pork – will have access to a global power of distribution and marketing. This means Beyond Meat will be able to fit into more categories and bring new products to market faster, according to a spokesperson for Beyond Meat. The US joint venture could include future expansion into China and the UK, the spokesperson added. The companies did not disclose the financial terms of the transaction.
The news caused a wave of Beyond meat (BYND) Stock. Shares closed around 18% on Tuesday.
Pepsi’s marketing prowess could also get more people to try Beyond Meat.
“Historically, [Beyond’s] Marketing spend has been minimal (mostly social media), ”UBS research analyst Erika Jackson wrote in a note Tuesday. Pepsi could help take this marketing to a new level and attract more customers.
For PepsiCo (DYNAMISM), partnership is a way to get a piece of the vegetable protein pie.
“Consumer demand for herbal products is large enough to impact sales, as the alternative herbal industry continues to grow,” said Ramsey Baghdadi, consumer analyst at GlobalData, company Tuesday. data and analysis. “PepsiCo’s decision to expand its existing selection of plant-based snacks will be a game-changer in the long term as more and more consumers are naturally turning to this trend.
Other consumer packaged goods companies have entered the market with acquisitions and new lines. Nestle (NSRGY) sells plant-based meat through Sweet Earth, a vegetarian food business it acquired in 2017. And Kellogg (K) sells meat of plant origin through its Incogmeato brand.
PepsiCo often sets up partnerships to help gain a foothold in attractive segments, noted Jackson of UBS. For example, PepsiCo and Starbucks (SBUX) have teamed up for years on ready-to-drink coffee drinks.
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