Beyond Meat (BYND) – Get report shares rose to a six-month high on Tuesday after the plant-based food group reached a partnership agreement with PepsiCo. (PEP) – Get report to manufacture and market a new range of snacks.
The two companies have agreed to establish 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 have not been announced.
“We are delighted to formally partner with PepsiCo in The PLANeT Partnership, a joint venture that combines the sheer depth and breadth of their distribution and marketing capabilities with our leading innovation in plant-based proteins. We look forward to working together in new categories unlocking and product lines that will inspire positive choices for people as well as the planet, “said Beyond Meat CEO Ethan Brown.” PepsiCo is the ideal partner for us in this exciting endeavor, one of global reach and importance. ”
Beyond Meat shares were 36% higher in trading before the market on Tuesday, indicating an opening clock price of $ 215.80 each, the highest since July 31. However, PepsiCo shares rose 1.2% to $ 141.85 each.
Earlier this month, Yum! Trademarks (YUM) – Get report said its Taco Bell division is investigating a partnership with Beyond Meat for a new plant product that will be tested next year. Late last year, Pizza Hut said it had partnered with Beyond Meat to offer two beef pizzas for a limited time.
“Plant-based proteins are 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 humans and the planet, while meeting consumer demand for an extensive portfolio of more nutritious products, “said PepsiCo chief executive Ram Krishnan.
“Beyond Meat is a leading innovator in this fast-growing category, and we look forward to combining their unmatched expertise with our world-class capabilities in brand building, consumer insights and distribution to offer new exciting options,” he adds.