Published: Tue, August 21, 2018
Markets | By Josh Butler

PepsiCo buys SodaStream to reach consumers 'beyond the bottle'

PepsiCo buys SodaStream to reach consumers 'beyond the bottle'

The Israel-based company, which produces machines that allow people to make fizzy drinks in their own homes, has positioned itself as a provider of a healthy product in contrast to traditional sugary, carbonated drinks.

Monday's sale looks to inject another big tax payout to Israel following previous sales of Israeli companies such as the mobile navigation app Waze, which was acquired by Google for about $1 billion, and Mobileye, which produces technology for self-driving cars and was gobbled up by Intel past year for $15 billion.

The machines made it into ten million British homes in the 1970s and 1980s as Tommy Cooper, the comedian, right, appeared in...

"From breakthrough innovations like Drinkfinity to beverage dispensing technologies like Spire for foodservice and Aquafina water stations for workplaces and colleges, PepsiCo is finding new ways to reach consumers beyond the bottle, and today's announcement is fully in line with that strategy".

It reported a 31% year-over-year jump in revenues to $172m (£134m), an 89% leap in operating profit to £32m (£25m) and an 82% climb by net profit to £26m (£20m).

Other soft-drink producers have tried to tap the at-home market, though success has been elusive.

"Daniel and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated".

Weed killer linked to cancer found in kids' cereal, oatmeal
The agency's assessment found no other meaningful risks to human health when the product is used according to the pesticide label. Farmers will spray the weed-killing chemical on crops, such as wheat, oats and lentils, before harvest .

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

The SodaStream acquisition will probably be the last big move by PepsiCo chief executive officer Indra Nooyi who steps down in October. Investors have speculated the snack maker was pursuing SodaStream for several years.

Actress Scarlett Johansson was previously a brand ambassador for the company.

Keurig Green Mountain and Dr Pepper Snapple Group merged last month, creating a beverage company with annual revenue of US$11 billion.

SodaStream has been a target of the Boycott Divest and Sanction Movement;that allegedly added to the company's decision to move its factory from Maale Adumim in the West Bank to the southern Israeli city of Rahat, resulting in hundreds of Palestinians losing their jobs.

PepsiCo was advised by Goldman Sachs and Centerview, while SodaStream was advised by Perella Weinberg Partners.

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