Plant-based meat company shares rise
Vegetarian food is increasingly taking over the world, and with it the stock market: shares in plant-based meat producer Beyond Meat (NASDAQ:BYND) soared more than 36% at the opening of trading in New York on news that the company will form a joint venture with PepsiCo (NASDAQ:PEP) to produce plant-based protein snacks and drinks.
This is all the more impressive as Beyond Meat's latest report showed a loss as demand for its products in restaurants and grocery shops declined after an initial spike at the start of the COVID-19 pandemic.
According to Beyond Meat's CEO Ethan Brown cited by Reuters, the new partnership will give the artificial meat maker access to PepsiCo's distribution and marketing resources and allow it to launch new production lines.
For its part, PepsiCo, which owns the Lay's, Quaker and Gatorade brands in addition to its eponymous soda, is also looking to expand its portfolio of snacks and beverages focused on a healthier lifestyle.
Financial terms of the partnership have not been disclosed and the operations will be managed through a newly created organisation, The Planet Partnership.
"Today is a landmark day on our journey towards a more sustainable food system", the company said on its official Twitter.
Beyond Meat's shares lost some of their gains, but are still trading 28.02% above yesterday's close, with a rise of almost 13% the day before.
Beyond Meat came into existence in 2009, and 10 years later held an IPO on the New York Stock Exchange. The start-up's share price more than doubled on the first day of trading. As Forbes recalls, Microsoft (NASDAQ:MSFT) co-founder Bill Gates and actor Leonardo DiCaprio were among the company's early investors.