Beyond Meat turns to Pepsi in vegan snacks deal

Shares of Beyond Meat sizzled on Tuesday after the fake-meat company said it would team up with PepsiCo in a joint venture to develop and sell snacks and beverages from plant-based protein.

This was just the latest in a string of positive deals for Beyond Meat, including a distribution pact with Walmart, and in-restaurant partnerships with Taco Bell, KFC and Starbucks.

The company has seen rapid growth and growing demand over the past two years, as faux-meat burger patties and sausages have caught on with health-conscious consumers, as well as shoppers concerned with animal welfare and food safety.

With PepsiCo, Beyond Meat gets a powerful new friend in supermarket and grocery store aisles, opening the door for Beyond Meat to leverage PepsiCo's distribution and marketing resources and allow expansion into new product lines.

For its part, Pepsi, which has its namesake soft-drink, juices, Lays, Quaker and Doritos brands under its umbrella, will get to expand into health-focused snacks and beverages.

The joint venture will be managed through a newly created entity called PLANeT Partnership.

Shares of Beyond Meat soared 39 percent on the announcement. Pepsi's stock saw a small bounce.