Beyond Meat and PepsiCo team up for plant-based snacks

Yahoo Finance’s Alexis Christoforous and Brooke DiPalma discuss the new partnership between Beyond Meat and PepsiCo.

Video Transcript

ALEXIS CHRISTOFOROUS: Let's get right to it. Beyond Meat was up more than 30% at one point today, on news of its partnership with PepsiCo. Yahoo Finance's Brook DiPalma has this one for us. What are the details, Brooke?

BROOKE DIPALMA: Alexis, that's right. The shares of Beyond Meat soaring based upon this announcement of the joint venture between PepsiCo and Beyond Meat, dubbed the PLANeT Partnership. Now we reached out, and a Beyond Meat spokesperson told us that these products are still in development. No word on what exactly Main Street can expect to see them in grocery store aisles. However, they are hoping that this increases accessibility for people to make more positive choices and a positive impact on the planet.

However, of course, shares of Beyond Meat soaring today, that's the big story here, jumping as high as 39%. That's the largest intraday gain for shares of Beyond Meat since June of 2019. Oppenheimer analysts noting that this is yet another attractive driver for Beyond Meat to gain a larger share within the plant-based ecosystem.

However, that flock to the shares of Beyond Meat, a bit controversial on Wall Street. JP Morgan analysts noting that that 30% gain was a bit over shot based upon the financial opportunity at hand, noting that maybe if it was with something like McDonald's, it would have made more sense, and that PepsiCo probably has limited upside. However, PepsiCo making lots of big plays within this plant-based protein alternative, healthy alternative trend. Of course, there's Lays Oven Baked potato chips, as well as those Sabre snacks. And so yet another diversification to PepsiCo's portfolio.