Beyond Meat Inc. (NASDAQ: BYND) shares jumped on Tuesday after the company announced a collaboration with PepsiCo Inc. (NASDAQ: PEP) to develop and produce snack and beverage products from plant-based protein.
Together these firms will form the PLANeT Partnership. The joint venture will leverage Beyond Meat’s leading technology in plant-based protein development and Pepsi’s marketing capabilities and network to create and scale new snack and beverage options.
Note that the financial details were not disclosed in this agreement.
It is worth pointing out that, usually after collaborations like this, Beyond Meat normally sees a rise in revenues. This was seen when the company partnered with Starbucks, and even when it entered China.
Pepsi’s management noted that plant-based proteins represent an exciting growth opportunity for the firm, a new frontier in its efforts to build a more sustainable food system and be a positive force for people and the planet, while meeting consumer demand.
Excluding Tuesday’s move, Beyond Meat stock had outperformed the broad markets with a gain of about 27% year to date. In the past 52 weeks, the share price was closer to 33% higher.
Beyond Meat stock traded up about 30% to $206.12 on Tuesday, in a 52-week range of $48.18 to $221.00. The consensus price target is $114.00.
PepsiCo stock traded at $140.60. The 52-week range is $101.42 to $148.77, and analysts have a consensus price target of $154.29.