Thursday, March 28, 2024
ADVT 
Health

PepsiCo goes Beyond Meat in new partnership

Darpan News Desk The Canadian Press, 26 Jan, 2021 08:45 PM
  • PepsiCo goes Beyond Meat in new partnership

PepsiCo and Beyond Meat are creating a joint venture to develop snacks and drinks made from plant-based proteins.

The companies didn’t reveal what kinds of products they will make Tuesday, saying they’re still in development.

But the collaboration sent Beyond Meat's shares to their largest single-day gain since they began trading in 2019, jumping by more than $62 each to $221. Pepsi's shares remained flat.

The join venture gives Pepsi access to one of the leading plant-based meat companies at a time when consumers are increasingly cutting back on meat consumption and looking for healthier, more sustainable foods. Beyond Meat's burgers, sausages and chicken, which are made from pea protein, are sold worldwide, including at Starbucks in China and Pizza Hut in the U.S.

Beyond Meat gets access to to Pepsi’s distribution system and broad product line. Pepsi, in addition to drinks, makes Fritos, Cheetos and Tostitos, as well as Matador beef jerky.

It's a shot in the arm for El Segundo, California-based Beyond Meat, which had been struggling to convince investors of its growth opportunities as competition increased. Beyond Meat shares plummeted in November after retail sales slowed and McDonald's hinted that it might work with another supplier on a new plant-based burger for the U.S. market.

Food companies are increasingly jumping into the plant-based space. In 2019, Chobani introduced coconut milk-based yogurt and Nestle brought out plant-based burgers and ground meat. Meat giant Tyson Foods, which used to own a stake in Beyond Meat, now has its own line of plant-based meats.

Consumers are eager to try those products. U.S. sales of plant-based meat jumped 45% in the 52 weeks ending Jan. 16; traditional meat sales rose 19% in the same period, according to NielsenIQ, a data firm. Total U.S. sales of plant-based proteins — including products like almond milk and plant-based eggs — jumped 19% over the last year, outpacing the 14% increase in all food sales.

“Plant-based proteins represent an exciting growth opportunity for us, a new frontier in our efforts to build more sustainable food system,” said Ram Krishnan, PepsiCo's global chief commercial officer.

Financial terms of the deal weren’t released. The joint venture will be managed through a new entity called The Planet Partnership.

MORE Health ARTICLES

UN: 870K measles cases in 2019, highest number in 23 years

UN: 870K measles cases in 2019, highest number in 23 years
To prevent measles outbreaks, WHO estimates about 95% of the population must be immunized.

UN: 870K measles cases in 2019, highest number in 23 years

News of potential COVID vaccine 'encouraging': PM

News of potential COVID vaccine 'encouraging': PM
The prime minister says news from Pfizer today that one of its vaccine candidates appears very effective in clinical trials is "very encouraging" but won't help anyone who catches the virus in the meantime.

News of potential COVID vaccine 'encouraging': PM

FDA panel urges rejection of experimental Alzheimer's drug

FDA panel urges rejection of experimental Alzheimer's drug
Friday’s meeting follows months of skepticism about the drug, developed by Cambridge, Massachusetts-based Biogen Inc. and Japan’s Eisai Co.

FDA panel urges rejection of experimental Alzheimer's drug

Health Canada approves first HIV self-test

Health Canada approves first HIV self-test
Health Canada granted a medical device licence on Monday to a one-minute, finger-prick blood test manufactured by Richmond, B.C.-based bioLytical Laboratories.

Health Canada approves first HIV self-test

Cost of cancer drugs triples in Canada

Cost of cancer drugs triples in Canada
The Patented Medicine Prices Review Board has released data showing cancer medications account for about 15 per cent of all spending on pharmaceuticals.

Cost of cancer drugs triples in Canada

Health panel proposes colon cancer tests start at 45, not 50

Health panel proposes colon cancer tests start at 45, not 50
While overall, colon cancer rates have been declining, the draft guidelines issued Tuesday by the U.S. Preventive Services Task Force reflect a growing concern about rising rates in people under the age of 50.

Health panel proposes colon cancer tests start at 45, not 50