In an effort to create more snacks and drinks with plant-based proteins, Beyond Meat Inc. (BYND, Financial) and PepsiCo Inc. (PEP, Financial) announced on Tuesday they are creating a joint venture called The PLANeT Partnership.
While the financial aspects of the deal were not disclosed, the El Segundo, California-based producer of plant-based meat substitutes will benefit from PepsiCo's production and marketing expertise, allowing it to reach more consumers in a wider range of product categories.
In a statement, Beyond Meat founder and CEO Ethan Brown expressed his excitement for the partnership.
"We look forward to together unlocking new categories and product lines that will inspire positive choices for both people and planet," he said. "PepsiCo represents the ideal partner for us in this exciting endeavor, one of global reach and importance."
For its part, Purchase, New York-based Pepsi will not only expand its presence in plant-based categories, but will be able to work toward its sustainability goals. In addition to cutting down on sugar in its products and adding healthier snacks and drinks to its portfolio, the popular food and beverage company committed to the United Nations' pledge last year to set science-based emissions reduction targets.
"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," Ram Krishnan, PepsiCo's global chief commercial officer, said.
Following the announcement, shares of Beyond Meat were up 18.02% at $187.34, giving it an $11.99 billion market cap. With a market cap of $192.01 billion, PepsiCo shares posted a smaller rally of 0.92% to $141.47.
GuruFocus estimates shares of Beyond Meat have gained more than 50% over the past year, while PepsiCo recorded a 1.04% decline.
Disclosure: No positions.
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