PepsiCo hopes to release new plant-based snacks and beverages made through its joint venture with Beyond Meat by early 2022.
“This is just the beginning of what I think will be a game-changing JV,” Pepsi CEO Ramon Laguarta told CNBC’s Sara Eisen.
Pepsi and Beyond announced the joint venture, called The PLANeT Partnership, in January. The partnership gives Beyond, a relatively new entrant into the food world, the opportunity to leverage Pepsi’s production and marketing expertise for new products. For its part, Pepsi can leverage its investment in vegetable categories – which are growing more and more crowded – while working with one of the leading creators of meat substitutes. It also helps Pepsi work towards its sustainability and health goals for its portfolio.
Earlier Wednesday, Pepsi announced a new initiative called “Pep +” that will change the company’s operations, with sustainability as its focal point. The food and beverage giant’s goals include reducing its plastic use, accelerating plans to reduce sodium and added sugars in its products, and spreading regenerative farming practices. Pepsi also said it incorporates more diverse ingredients, particularly chickpeas, vegetable-based proteins and whole grains, that could fit into Pepsi’s potato chips portfolio.
Ramon Laguarta, chief executive officer of PepsiCo Inc., means a photograph before a closing bell ceremony at a remote Nasdaq Inc. location. in Atlanta, Georgia, on Friday, February 1, 2019.
Elijah Nouvelage | Bloomberg | Getty Images
Sustainability also influences Pepsi’s return to office plans. Laguarta said the company follows a more flexible model, with company employees returning to office buildings only a few days a week or a month.
“You don’t come to the office to make phone calls or write emails,” he told CNBC’s “Closing Bell.” “It’s a bad thing. It’s a lot of work, a waste of personal time, unnecessary pollution.”
Pepsi shares closed lower than 1% Wednesday. The stock market has increased 5% this year, giving a market value of $ 216 billion. Beyond Meat shares closed lower than 1%, bringing the company’s market value to $ 7 billion. Beyond stocks it has dropped 11% this year.