US/Israel: PepsiCo buys SodaStream for US$3.2b

PepsiCo will pay US$3.2 billion for Israeli at-home water carbonation products company SodaStream, according to a Monday, August 20, filing with the Tel Aviv Stock exchange. SodaStream will become an indirect wholly-owned subsidiary of PepsiCo following the deal, reports the Wall Street Journal (WSJ).

“PepsiCo and SodaStream are an inspired match,” PepsiCo chairwoman Indra Nooyi said in a statement Monday, August 20. She added that SodaStream is in line with the company’s “philosophy of making more nutritious products while limiting our environmental footprint.”

SodaStream sells machines that allow people to add carbonation to tap water at home, as well as syrups to flavor it.

“We are honored to be chosen as PepsiCo’s beachhead for at home preparation to empower consumers around the world with additional choices,” SodaStream CEO Daniel Birnbaum said.

According to The Wall Street Journal, “Sparkling water has grown far more strongly than the overall bottled water category in the US, clocking volume growth of 38% last year up from 35% in 2016 according to data from industry tracker Beverage Marketing Corp.”

Sales of soft drinks, PepsiCo’s traditional products, are struggling. Generally, according to the WSJ, “big brands are losing shelf space to smaller, trendier entrants and established players are scrambling for growth.”

Full Content: The Wall Street Journal