PepsiCo is planning to release several new plant-based snacks and drinks by early next year in a joint venture with Beyond Meat. Both the companies announced the joint venture in January, calling it The Planet Partnership.
Ramon Laguarta told CNBC’s Sara Eisen that it was only the beginning of what he thought would be a game changing joint venture (JV). The partnership is profitable for both the companies in different areas. Beyond is a fairly new company in the food industries and the JV is giving it leverage in both production and marketing with PepsiCo’s established expertise and huge operations.
PepsiCo is also deepening its investment in the plant- based category which now becoming a huge market. Beyond is a top creator of meat substitutes and is a good partner for the company to invest in as it is innovative and growing its product range. The food and beverage giant is also working towards sustainable and health goals and the JV adds to those goals.
On Wednesday, PepsiCo had announced a new initiative which it called “Pep+.” It will usher in change in the company’s operations towards sustainability. Some of the goals that will be undertaken include
- decreasing the use of plastic
- reducing the amounts of added sugars and sodium in products
- encouraging regenerative agricultural practices
- using plant-based ingredients such as chickpea and whole grains in its chips products.
On CNBC’s Closing Bell, Lagarta said that people should not go to the office to make phone calls or to write emails. He called that a waste of commute, of personal time and something that would cause unnecessary pollution.
PepsiCo is also adding sustainability goals to its office structure by adopting a more flexible model. Corporate officials can return to office building for a few days in a week or even a few days in a month.
PepsiCo and Beyond shares closed up less than one percent on Wednesday. The food and beverage giant saw a five percent rise in value this year with a $216 billion market value while the meat substitutes company saw a fall of 11 percent in value this year and has a $7 billion market value.
