Ramon Laguarta, CEO of PepsiCo Inc., stands for a photo before a closing bell at a remote Nasdaq Inc. location in Atlanta, Georgia on Friday, February 1, 2019.
Elijah Nouvelage | Bloomberg | Getty Images
PepsiCo hopes to launch new plant-based snacks and beverages made through its joint venture with Beyond Meat by early 2022.
“This is just the beginning of a groundbreaking joint venture,” said Ramon Laguarta, CEO of Pepsi, Sara Eisen of CNBC.
Pepsi and Beyond announced the joint venture called The PLANeT Partnership in January. The partnership gives Beyond, a relative newcomer to the food world, the chance to leverage Pepsi’s manufacturing and marketing expertise for new products. For its part, Pepsi can deepen its investments in plant-based categories – which are becoming increasingly dense – while partnering with one of the leading manufacturers of meat substitutes. It also helps Pepsi meet its sustainability and health goals for its portfolio.
On Wednesday, Pepsi announced a new initiative called “Pep +” to transform the way the company does business with sustainability at its heart. The food and beverage giant’s goals include reducing plastic usage, accelerating plans to reduce sodium and added sugar in its products, and spreading regenerative farming practices. Pepsi also said it is adding more diverse ingredients, particularly chickpeas, plant-based proteins, and whole grains, which could find their way into Pepsi’s potato chip portfolio.
Sustainability also influences Pepsi’s return to office plans. Laguarta said the company is following a more flexible model with company employees returning to office buildings only a few days a week or a month.
“Don’t come to the office to phone or write emails,” he said on CNBC’s Closing Bell. “That’s a waste. It’s a lot of commuting, a waste of personal time, unnecessary pollution.”
Pepsi shares closed less than 1% on Wednesday. The stock is up 5% this year and has a market value of $ 216 billion. Beyond Meat’s shares closed less than 1%, bringing the company’s market value to $ 7 billion. Beyond’s stock is down 11% this year.