![]() ![]() Birnbaum will remain with the company when the deal closes. The deal came together in a "matter of weeks," Johnston said. "He got convinced the cultural fit would be good." "We've been on and off talking to for a couple of years, not just on acquiring them," said Johnston. As a result, there has long been speculation that PepsiCo would acquire the company. It began selling caps for Pepsi and Sierra Mist drinks on the platform in 2015. SodaStream has had a longstanding relationship with PepsiCo. PepsiCo has made its own efforts at sparkling water, launching Bubly earlier this year to help fight against LaCroix. Prior to the deal's announcement, SodaStream shares had gained nearly 85 percent this year. Sales of its machines rose 22 percent in the quarter, to more than 1 million, while sales of gas refill units grew 17 percent, to a record 9.7 million. It tripled its earnings forecast for the year, and the news sent SodaStream shares up more than 26 percent. Those efforts appear to have borne fruit: Earlier this month, the company reported quarterly earnings that crushed estimates. The company helped create the market for in-home soda making, but in recent years it has promoted the product as a tool to make carbonated water, accommodating for changing tastes. Its biggest markets are Germany, France, Canada and the U.S. It now distributes in 80,000 individual retail stores across 45 countries. She also spent years warding off pressure from activist investor Nelson Peltz, whose presence cast a close eye on dealmaking.įor SodaStream, the deal is a further chance to broaden its reach through PepsiCo's global footprint. Nooyi, who earlier this month announced plans to step down, led the company's shift away from sugary products and introduced healthier alternatives. The acquisition is one of the boldest moves that CEO Indra Nooyi has made in her 12-year tenure as CEO. Tel Aviv-based SodaStream makes a machine and refillable cylinders through which users can make their own soda or carbonated water drinks. It also seemingly addresses the challenge that buying new drink brands risks cannibalizing its legacy beverages. With this move, PepsiCo is doubling down on its drinks business, which has struggled in North America as consumers move away from sugary, carbonated beverages. "We get to play in a business - home beverages - where we don't play," PepsiCo CFO Hugh Johnston told CNBC. Meantime, retailers are squeezing brands on price and giving increasing shelf-space to upstart and private label brands. grocers are in a state of transformation, with 70 percent of shoppers expected to buy groceries online by 2025, according to Food Marketing Institute and Nielsen. The deal gives PepsiCo a new line through which it can reach customers in their homes rather than through stores. ![]() Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |