What's On The Beyond Meat And PepsiCo Menu?

PepsiCo, Inc. (NASDAQ: 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 (NASDAQ: 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)