Plant-based food options are gaining increasing prominence as consumers become more conscious of their eating habits and its impact on the environment. Several food companies have been tapping into the evolving opportunities in the plant-based food arena, with
Beyond Meat, Inc.
BYND
being one of the forerunners. As part of Beyond Meat’s commitment to continue expanding plant-based protein offerings, the company teamed up with
PepsiCo, Inc.
PEP
to form a new joint venture entity — The PLANeT Partnership, LLC.
The venture seeks to develop, produce and market innovative plant-based protein snacks and beverages. Investors seem to be excited regarding this new tie up, as shares of Beyond Meat increased 17.7% during the trading session on Jan 26. The company’s shares have risen 19.7% in the past three months compared with the
industry
’s growth of 7.3%. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
Efforts to Boost Plant Based Offerings
The newly-established joint venture will make use of Beyond Meat’s strong technological expertise in plant-based protein development and PepsiCo’s top-notch marketing and commercial capabilities, for creating and scaling new snacks as well as beverage products. The PLANeT Partnership, LLC will be responsible for managing the operations of the joint venture. The financial terms in relation to this partnership have not been disclosed by the companies.
We note that Beyond Meat prides on being a leading provider of healthy plant-based meat alternatives whose products are made from simple ingredient and contain no GMOs or bioengineered components. Moreover, the company is committed to expand offerings and achieve greater market presence in plant-based protein food options. It’s partnership with PepsiCo is therefore an ideal opportunity to attain greater global reach as well unlocking new potentials in the plant-based food space.
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When it comes to bolstering product offerings, we note that Beyond Meat has been on wheels with innovations. Last year, the company rolled out several new products such as Beyond Breakfast Sausage Links, Beyond Meatballs, Cookout Classic and Beyond Breakfast Sausage. Per media sources, earlier this month the company teamed up with Taco Bell, for developing a fresh plant-based product. Additionally, the company is expanding its distribution capabilities by teaming up with retail giants like
Walmart Inc.
WMT
,
The Kroger Co.
KR
, Whole Foods Market, Harris Teeter and Albertsons to name a few. These partnerships have been aiding growth in the company’s retail channel.
Wrapping Up
We note that Beyond Meat has been struggling with weak foodservices business for a while now. This Zacks Rank #5 (Strong Sell) company’s foodservice channel has been adversely impacted by sluggish food-away from home trends amid the coronavirus pandemic. During third-quarter 2020, revenues in the foodservice channel declined on account of stay-at-home practices and curbs on operating capacity, which resulted in closures or considerably reduced operations for many foodservice customers.
Nevertheless, the company’s retail channel continued to remain strong, on account of strong product offerings and partnerships. Moreover, the company’s prudent efforts to expand offerings, places it well to cater to consumers’ rising demand for plant-based offerings.
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