Shares of Beyond Meat (NASDAQ:BYND) soared on Monday, following news of a major new distribution deal in China. As of 2:55 p.m. EDT, Beyond Meat's stock was up more than 20%.
Beyond Meat entered into a strategic partnership with Sinodis, China's leading imported food distributor. Sinodis will distribute Beyond Meat products via its network of more than 4,500 wholesalers, restaurants, and hotels.
"Our goal is to promote the availability of plant protein products on a global scale, to provide consumers with more choices, and also allow them to enjoy the nutritional value and environmental benefits of edible plant protein," Beyond Meat's chief growth officer Chuck Muth said in a press release. "China has a large population and a strong interest in plant protein products.
The deal helps to further Beyond Meat's expansion ambitions in the world's most populous nation. The meat-alternatives leader struck a deal with Starbucks (NASDAQ:SBUX) in April, which brought its Beyond Beef products to more than 3,300 of the coffee king's restaurants in China.
And just days ago, Beyond Meat reached an agreement that would bring its plant-based Beyond Burgers to some of Yum China's (NYSE:YUMC) KFC, Taco Bell, and Pizza Hut restaurants for a limited time. "We see great potential for the plant-based meat market in China," Yum China CEO Joey Wat said at the time of the announcement.
It's clear that Beyond Meat intends to aggressively expand its operations in China. And judging by today's gains, investors are becoming more optimistic about its growth prospects in this potentially massive market.