Plant-based meat substitute maker Beyond Meat shares jumped +26% on Tuesday after the company announced a partnership deal with PepsiCo. on a new line of snacks and drinks with plant-based substitutes. (Some of the rally may have been fueled by hedge funds rushing to cover their bets against the stock.).
The two companies will form joint venture PLANeT Partnership LLC, that will combine PepsiCo's marketing with Beyond Meat's plant-based food production technology. Through this venture, Pepsi could expand its investment in plant-based category. In recent years, the beverage giant has been trying to add healthier options in its snacks and drinks portfolio.
"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."
Earlier this month, Yum! Brands announced that its Taco Bell division is exploring a partnership with Beyond Meat for a new plant-based product to be tested next year. Also, late last year, Pizza Hut said it partnered with Beyond Meat to offer two plant-based-meat pizzas for a limited time period.