Beyond Meat stock price explodes after striking a JV partnership with PepsiCo
- Two companies announced a partnership to create a joint venture “The PLANeT Partnership”
- The new joint venture will use PepsiCo’s production and marketing expertise
- BYND stock price initially exploded nearly 40% in pre-market trading Tuesday before rotating lower
Shares of Beyond Meat (NASDAQ: BYND) are trading about 18% higher today after the company announced a partnership with PepsiCo to create plant-based products.
Fundamental analysis: Major deal for BYND agreed
Two companies announced a partnership to create a joint venture “The PLANeT Partnership”. The company will create and sell plant-based snacks and drinks.
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“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,” said Ram Krishnan, PepsiCo Global Chief Commercial Officer.
The statement adds that the new joint venture will use PepsiCo’s production and marketing expertise, while BYNDF will contribute with its technical knowledge on making plant-based products.
“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.
A new JV will also help PepsiCo meet its sustainability and emission-reduction targets. The food and drinks giant is also committed to reducing the amount of sugar used in its products.
Technical analysis: Shares explode
BYND stock price initially exploded nearly 40% in pre-market trading Tuesday. Shares opened at $218.90 before edging a bit higher to print $221.00, the highest BYND traded since July 2019.
However, around half of these gains were given back as the price action now trades around 18% in the green. For buyers of BYND stock, a daily close above $197.50 is crucial going forward.
Beyond Meat share price is trading much higher today after the firm announced it is forming a joint venture with PepsiCo to create plant-based products.