Shares of Beyond Meat Inc. rallied 20%, boosting the company’s market value to about $11 billion on Jan. 26 after the El Segundo-based maker of plant-based meat alternatives said it formed a joint venture with PepsiCo Inc.
 
The partnership will develop, produce and market “innovative snack and beverage products,” according to a statement from Beyond Meat. Financial terms were not disclosed.
 
The companies created Planet Partnership to manage the joint operation.

According to Beyond Meat Chief Executive Ethan Brown, the joint venture will combine PepsiCo’s “tremendous depth and breadth of … distribution and marketing capabilities (with Beyond Meat’s) leading innovation in plant-based protein.”
 
The partnership “follows longstanding efforts by PepsiCo to help build a more sustainable food system,” according to PepsiCo, as well as Beyond Meat’s “passion for creating products that are good for both people and the planet, using simple, plant-based ingredients with no GMOs or bioengineered ingredients.”

The companies didn’t specify what products the partnership will focus on, but analysts speculate the lineup will be varied and may include protein shakes or protein-based chips.

“In snacks, that could involve options like plant-based jerky or replacing the animal meat components in refrigerated protein snack packs that contain cheese, meat and nuts/fruit etc. with a plant-based Beyond option,” Alexia Howard, a sell-side equity research analyst for U.S. foods sector at Sanford Bernstein & Co. in New York, wrote in a memo to clients.