With Pepsi, Beyond Meat – which already makes vegan alternatives to beef and pork – will gain access to a global distribution and marketing center. this means Beyond the meat
It will be able to enter more categories and introduce new products to the market more quickly, according to a spokesperson for Beyond Meat. The US joint venture may include expansion in the future In China
The UK spokesman added. The companies did not disclose the financial terms of the deal.
The news prompted an increase in Beyond the meat (BYND)
stock. Shares closed about 18% higher on Tuesday.
Pepsi ‘s marketing prowess could also attract more people to try Beyond Meat.
Historically, [Beyond’s] Marketing spending has been nominal (primarily on social media), ”UBS research analyst Erica Jackson wrote in a note Tuesday. Pepsi could help push this marketing to a new level, and bring more customers into the fold.
For PepsiCo (PEP)
, Partnership is a way to have a slice of a vegan protein pie.
“Consumer demand for plant-based products is large enough to make an impact on sales, as the alternative plant-based industry continues to grow,” Ramzi Baghdadi, consumer analyst at globalData, said in a statement on Tuesday. “PepsiCo’s decision to expand its current range of vegan snacks will be a game-changer in the long run, as more consumers are naturally gravitating toward this trend.”
Other FMCG companies have entered the market with new acquisitions and lines. Nestle (NSRGY) He sells vegetarian meat
Through Sweet Earth, a vegan food company acquired in 2017. and Kellogg (K)
It sells vegetarian meats under its brand Incogmeato.
UBS’s Jackson noted that PepsiCo often forges partnerships to help establish itself in attractive sectors. For example, PepsiCo, Starbucks (SBUX)
We have partnered for years on ready-to-drink coffee drinks.