What's On The Beyond Meat And PepsiCo Menu?

PepsiCo, Inc. PEP has been busy acquiring businesses in recent years. But what people are talking about is the beverage company's recent partnership with Beyond Meat Inc BYND, which will generate a "very healthy set of snacks," PepsiCo CFO Hugh Johnston said on CNBC's "Squawk Box."

Plant-Based Snacks: PepsiCo will leverage Beyond Meat's expertise in plant-based protein to "develop a variety of products," the CFO said. One product the executive teased is a "protein-based snack."

"These are going to be delicious, they are going to be healthy, and they are going to be plant-based," he said. "That's all I'm ready to talk about right now."

Related Link: Beyond Meat Analysts Pessimistic About Pepsi Deal, Stock Pop

M&A Plans: PepsiCo has been pretty active over the past few years on the M&A front and is comfortable with its current lineup of products. Most notably, the 2018 acquisition of SodaStream for $3.2 billion has "gone terrifically well," while the 2020 acquisition of Rockstar Energy Beverages is showing early signs of progress after a "slow start."

M&A may be taking a backseat to fuel growth as the company will rely on growing sales organically. Gatorade Zero is one example of how a brand can be launched "out of nothing" and generated $1 billion in sales in 2020.

Nevertheless, the company will likely take a look at "something in the energy space for Mountain Dew," Johnston said. Consumers have shown an interest in the energy category with a preference for low-calorie options.

(Photo: Beyond Meat)