Kraft Heinz (NASDAQ: KHC) announced that it is forming a joint venture with The Not Company, a USD1.5 Billion start-up that manufactures plant-based substitutes for eggs, milk, and meat, in order to develop a lineup of plant-based food products. The partnership, which will operate under the control of Kraft Heinz as The Kraft Heinz Not Company, will highlight the strengths of both companies. Kraft Heinz shares shot up 5% Tuesday following the news, though it was flat during morning trading Wednesday.
“The joint venture with TheNotCompany is a critical step in the transformation of our product portfolio and a tremendous addition to our brand design-to-value capabilities,” said Kraft Heinz CEO Miguel Patricio. “It helps deliver on our vision to offer more clean, green, and delicious products for consumers. We believe the technology that NotCo brings is revolutionizing the creation of delicious plant-based foods with simpler ingredients.”
Kraft Heinz is in the process of a turnaround that includes reviving popular brands like Oscar Mayer. The branding updates come after the company detailed its value within the fourth quarter of 2018 and again in the second quarter of 2019. Demand for plant-based foods continues to surge and Kraft Heinz Not is set to develop superior plant-based versions of co-branded products with premium speed, taste, quality, and scale.
“When we started NotCo, it was our goal to make our technology a catalyzer for a more sustainable food system not only for us but for other brands and manufacturers who share the same ambition,” said Matias Muchnick, co-founder, and CEO of NotCo. “Today is an exciting milestone for the plant-based industry and shows the power of technology’s role in driving mainstream adoption. We’re thrilled to partner with Kraft Heinz and their iconic brands and work hand-in-hand on building a more sustainable food system.”