Blue Apron surges most on Beyond Meat partnership

Bloomberg

Blue Apron Holdings Inc rallied the most since going public two years ago after announcing a tie-up with a hot brand: Beyond Meat Inc.
The struggling meal-kit company will begin introducing products from the alternative-meat startup on its menus in August, New York-based Blue Apron said in a statement. The shares rose as much as 78 percent, their biggest intraday gain since the stock debuted in June 2017.
The partnership may breathe some fresh life into Blue Apron, whose stock has plummeted more than 90 percent since its initial public offering turned out to be one of the worst-performing in recent history. Meanwhile, Beyond Meat shares have gained almost seven-fold since their May debut as faux meat has taken off across restaurant and fast-food chains. Beyond Meat extended those gains, adding as much as 4.9 percent.
Blue Apron’s struggles stem from the meal-kit industry’s challenges attracting and retaining customers. Although subscriptions were originally marketed to people who wanted to cook but didn’t know what or how, it was soon beset with complaints: The meals were too expensive, you had to plan ahead, and people felt guilty throwing away all the packaging required to keep ingredients fresh.