Beyond Meat (BYND) - Get Beyond Meat Inc. Report shares surged to a six-month high Tuesday after the plant-based food group reached a partnership deal with PepsiCo. (PEP) - Get PepsiCo Inc. Report to produce and market a new line of snacks.
The two companies agreed to form the PLANeT Partnership LLC, a joint venture that will leverage PepsiCo's marketing with Beyond Meat's plant-based food production technology. Financial terms for the arrangement were not disclosed.
"We are thrilled to formally join forces with PepsiCo in The PLANeT Partnership, a joint venture that unites the tremendous depth and breadth of their distribution and marketing capabilities with our leading innovation in plant-based protein. We look forward to together unlocking new categories and product lines that will inspire positive choices for both people and planet," said Beyond Meat CEO Ethan Brown. "PepsiCo represents the ideal partner for us in this exciting endeavor, one of global reach and importance."
Beyond Meat shares were marked 30.3% higher in early trading Tuesday to change hands at $207.65 each, the highest since July 31. PepsiCo shares, meanwhile, rose 0.2% to $140.45 each.
Earlier this month, Yum! Brands (YUM) - Get Yum! Brands Inc. Report said its Taco Bell division is exploring a partnership with Beyond Meat for a new plant-based product that will be tested next year. Late last year, Pizza Hut said it partnered with Beyond Meat to offer two plant-based-meat pizzas for a limited time.
"Plant-based proteins represent an exciting 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, while meeting consumer demand for an expanded portfolio of more nutritious products," said PepsiCo's chief commercial officer Ram Krishnan.
"Beyond Meat is a cutting-edge innovator in this rapidly growing category, and we look forward to combining their unparalleled expertise with our world-class capabilities in brand-building, consumer insights and distribution to deliver exciting new options," he added.