Beyond meat (BYND) – Get report Shares soared to a six-month high on Tuesday after the vegetable-based food group struck a partnership agreement with PepsiCo. (PEP) – Get report to produce and commercialize a new line of snacks.
The two companies agreed to form PLANeT Partnership LLC, a joint venture that will leverage PepsiCo’s marketing with Beyond Meat’s plant-based food production technology. The financial terms of the agreement were not disclosed.
“We are excited to formally join forces with PepsiCo on The PLANeT Partnership, a joint venture that combines the enormous depth and breadth of its distribution and marketing capabilities with our leading innovation in plant-based protein. Together we hope to unlock new categories and lines of products that will inspire positive choices for people and the planet, “said Ethan Brown, CEO of Beyond Meat. “PepsiCo represents the ideal partner for us in this exciting venture, of global reach and importance.”
Beyond Meat’s shares were marked 36% higher in Tuesday’s pre-market to indicate an opening price of $ 215.80 each, the highest since July 31. PepsiCo shares, however, rose 1.2% to $ 141.85 each.
Earlier this month, Yum! Brands (YUM) – Get report said its Taco Bell division is exploring a partnership with Beyond Meat for a new herbal product that will be tested next year. Late last year, Pizza Hut said it partnered with Beyond Meat to offer two vegetable-based meat pizzas for a limited time.
“Plant-based proteins represent an excellent growth opportunity for us, a new frontier in our efforts to build a more sustainable food system and be a positive force for people and the planet, meeting consumer demand for an expanded portfolio of more nutritious products, “said PepsiCo commercial director Ram Krishnan.
“Beyond Meat is a leading innovator in this fast-growing category and we look forward to combining his unparalleled experience with our world-class capabilities in brand building, consumer awareness and distribution to offer exciting new options,” he added.