Beyond Meat cooking up plant-based pepperoni with Pizza Hut

Brian Sozzi gives his take on the news of Beyond Meat partnering with Pizza Hut to create plant-based pepperoni and how this partnership could impact the company moving forward as it pushes to diversify its pizza offerings to attract new customers.

Video Transcript

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MYLES UDLAND: All right, where will we find Brian Sozzi's little figurine today? I believe, Brian Sozzi, you will be on a pizza.

BRIAN SOZZI: Yeah, some breaking news here, Myles and Julie. Beyond Meat announcing the next step in their deal or partnership with Pizza Hut that they enacted earlier this year. And to that end, they are launching today Beyond Pepperoni.

There you can see that pizza in the market and me holding a piece of the very own Beyond Pepperoni pizza from Pizza Hut. You can see me on the right-hand corner doing my thing. But anyway, this pizza will be available in test form at 70 locations across five US markets, limited time, of course.

And you're wondering, well, how did they make this pepperoni? The two main ingredients in it appear to be peas and rice. That's what gives it, the pepperoni, its base. But again, this is not the first time that Beyond Meat and Pizza Hut have tag teamed.

They've probably been the closest among really in the fast food space compared to other deals that Beyond Meat has. Last year, they teamed up for a pizza at Pizza Hut with Beyond Sausage Crumbles. And then also too, they had Beyond Fried Chicken at Yum Brands owned KFC.

And this is a nice win for Beyond Meat. You see in the-- there I am also too holding a piece of Beyond Fried Chicken. I mean, our producer really is just doing top work here. This is absolutely amazing stuff.

But anyway, you're seeing Behind Meat shares up 1% on this news here in the early going, and it's a nice win for them. They recently lost a good chunk of business from Dunkin' Brands. You know, of course, Dunkin' Brands is now private. They're owned by Inspire Brands. And there has been some menu rationalization at Dunkin', and a lot of the Beyond Breakfast Sandwich, in fact, has come off many locations at Dunkin' Brands as new management at Dunkin' refine tunes that menu.

But there are some sandwiches-- it is available in some location, Dunkin' locations, on the West Coast. But again, this is a nice win for Beyond Meat and maybe for Pizza Hut too.

JULIE HYMAN: Well, it's only a win if people buy it. Like, signing the contract is all well and good, but as the Dunkin' example illustrates, it only works if then people buy that pizza and buy that product. And I think that's still an open question.

BRIAN SOZZI: In the best possible case, this tests well, it does well in these 70 locations, and then they can maybe roll it out more broadly, and you could see it be a needle mover for Beyond Meat. But again, at least from a headline perspective, this is a nice development for a company that needs these food service deals to create that wow, which ultimately leads to, I think, to more sales in the retail channel.

MYLES UDLAND: All right, Brian, I'm a little disappointed you weren't physically delivering the pizza, but I understand, you know, we have limitations with the graphics and what we can do. We place you where we can.

BRIAN SOZZI: And I will do better next time for you, Myles.

MYLES UDLAND: All right. Brian Sozzi, you are headed to a truly, truly to an undisclosed location. Or are you up for the next two and 1/2 days or just one and 1/2?

BRIAN SOZZI: You'll see me tomorrow morning back on the show in the Mecca where they make things that help cars drive. That's all I have for you. Deep tease.

MYLES UDLAND: OK, are you back Thursday or Friday? Friday, right?

BRIAN SOZZI: Thursday afternoon. Thursday afternoon.

MYLES UDLAND: So, Friday. So, Friday.

BRIAN SOZZI: But you'll see written content from me.

MYLES UDLAND: Brian Sozzi.