Consumers have shifted their attitudes toward sugary beverages in the past decade, preferring healthier options. Soft drink companies are shifting their products to cater towards this widespread change. PepsiCo
SodaStream, an Israel-based company, makes countertop machines that allow consumers to carbonate tap water at home by filing a reusable bottle and adding flavors if desired, creating both a healthier alternative to sugary soda and a relatively environmentally-friendly option.
The acquisition allows Pepsi to gain exposure to the soda water segment, a fast-growing segment that has captured consumers abandoning sugary beverages. Competing companies like La Croix have seen a large spike in popularity. SodaStream has a large presence in this sector and a great distribution network that will make for an attractive asset for PepsiCo and help the company offer more variety to its health- or eco-conscious consumers.
According to statement made by PepsiCo CEO and chairman, Indra Nooyi, Soda Stream is "offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated. That focus is well-aligned with Performance with Purpose, 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."
PepsiCo is discovering new ways to reach consumers beyond its namesake soda. The deal between PepsiCo and SodaStream is expected to go through by January 2019 after shareholders from SodaStream approve it. The acquisition has already been publicly lauded by the directors of both companies.
- https://www.wsj.com/articles/pepsi-continues-move-away-from-sugary-drinks-with-sodastream-deal-1534749310
- https://www.bizjournals.com/newyork/news/2018/08/20/pepsico-buys-sodastream.html
- https://www.nytimes.com/2018/08/20/business/dealbook/pepsi-sodastream.html
- https://www.marketingweek.com/2018/08/20/pepsi-buys-sodastream/