Beyond Meat Soars After Announcing Joint Venture With Pepsi

Shares of plant-based food maker Beyond Meat Inc BYND gained 21% Tuesday morning after confirming a new joint venture with PepsiCo, Inc. PEP.

What Happened: Beyond Meat and PepsiCo announced the formation of a PLANeT Partnership, a joint venture to develop, produce, and market snacks and beverage products made out of plant-based ingredients. The venture will leverage Beyond Meat's expertise in plant-based food development and PepsiCo's marketing and commercial capabilities.

The financial terms of the agreement were not disclosed.

Related Link: Beyond Meat Analyst: Attractive Growth Story Takes Back Seat To Valuation Concerns

Why It's Important: Beyond Meat and Pepsico both strive to create food and beverage products that are both good for people and the planet. Both companies believe there is a "better way to feed our future" and even the smallest of habit changes can have a great impact on personal health and the health of the environment.

"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 Ethan Brown, Beyond Meat Founder and CEO.

What's Next: Plant-based food and beverage items represents an "exciting growth opportunity" for PepsiCo and to create a more sustainable food system, PepsiCo Global Chief Commercial Officer Ram Krishnan also said in the press release.

"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," Krishnan added.

Beyond Meat's stock was up 21.15% to $192.30 at publication time.