PepsiCo is teaming with Beyond Meat

PepsiCo and Beyond Meat are creating a joint venture to develop snacks and drinks made from plant-based proteins.

The companies didn’t reveal what kinds of products they will make Tuesday, saying they’re still in development. But the collaboration sent Beyond Meat’s shares to their largest single-day gain since they began trading in 2019, jumping by more than $62 each to $221. Pepsi’s shares remained flat.

The join venture gives Pepsi access to one of the leading plant-based meat companies at a time when consumers increasingly are cutting back on meat consumption and looking for healthier, more sustainable foods. Beyond Meat’s burgers, sausages and chicken, which are made from pea protein, are sold worldwide.

Beyond Meat gets access to to Pepsi’s distribution system and broad product line.

The joint venture will be managed through a new entity called the Planet Partnership.