The shares of Beyond Meat (BYND) soared this Tuesday morning due to the announcement of a partnership with PepsiCo (PEP). The joint venture will operate under the name “The PLANeT Partnership” and aims to introduce new plant-based snack and drink alternatives to the market.
This strategic partnership allows PepsiCo to extend its product portfolio into the market of meat-substitutes, in which Beyond Meat has been very successful, currently holding around 13% market share in the United States. Beyond will profit from Pepsi’s extensive experience in global production and advertising.
While PepsiCo stock has recorded a modest gain, Beyond Meat closed up more than 18%. This considerable stock move could have potentially been aided by institutional investors covering sizable short positions.