PepsiCo buys SodaStream to reach consumers 'beyond the bottle'

Marco Green
August 20, 2018

Employees pack boxes of the SodaStream product at the factory in the West Bank Jewish settlement of Maale Adumim January 28, 2014.

Geneva: PepsiCo Inc. said it agreed to buy SodaStream International Ltd for $3.2 billion to gain the Israeli company's at-home soft-drink-making technology.

Melanie Felgate, senior consumer insights analyst at data and analytics company GlobalData says: "SodaStream allows consumers to customize their own beverages to create not only flavors - but potentially sugar levels - to suit their needs, helping PepsiCo better meet consumer's needs for products which are not only healthier but do not compromise on taste".

PepsiCo will pay $144.00 per share in cash, a 32% premium.

SodaStream's US-listed shares were up 10.5 percent in pre-market trading.

The move will boost Pepsi's (PEP) efforts to shift from its traditional soft drinks business into to offering healthier options.

Founded in the United Kingdom in 1903, SodaStream was a coveted device in British kitchens in the 1970s and 80s, allowing customers to create fizzy drinks by adding flavoured syrups to carbonated water, but it faded in popularity as soft drinks became cheaper.

"PepsiCo and SodaStream are an inspired match", PepsiCo chairman and CEO Indra Nooyi said in a statement.

"That focus is well-aligned with Performance with goal, our philosophy of making more nutritious products while limiting our environmental footprint".

"Together, we can advance our shared vision of a healthier, more sustainable planet", she added. The New York-based group will fund the deal with cash on hand.

SodaStream is available at more than 80,000 individual retail stores across 45 countries.

Other reports by Click Lancashire

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