Beyond Meat (BYND) will partner with PepsiCo (PEP) on healthy protein snacks, expanding its reach as consumers turn to plant-based food options. Beyond Meat stock surged.
The deal is Beyond Meat’s potentially most far-reaching partnership. The company and PepsiCo announced a joint venture Tuesday to develop, produce and market snacks and beverages made from plant-based protein.
The partnership will allow Beyond Meat to enter new product categories and distribution channels, a statement said. Pepsi, which has a presence in more than 200 countries, will “expand its portfolio of positive choices for consumers and for the planet.”
Terms of the joint venture, The PLANeT Partnership, were not disclosed.
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Shares of Beyond Meat soared 35% intraday before closing up 17.7% at 186.83 in Tuesday’s stock market. Beyond Meat stock gapped to a new high and the stock’s opening price could be used as an entry, according to MarketSmith chart analysis. PepsiCo rose 1.2%, still below its 50-day line.
Founded in 2009, Beyond Meat’s burgers and other products mimic the taste and texture of animal-based meat, without the downside.
The company’s recent partnerships include Yum Brands‘ (YUM) Taco Bell, Carl’s Jr. and Del Taco (TACO). McDonald’s (MCD) has also experimented with Beyond Meat patties.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
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