Food and beverage giant PepsiCo is buying Israeli fizzy drink-maker SodaStream for $3.2 billion. Dan Balilty/AP hide caption
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Dan Balilty/AP
Food and beverage giant PepsiCo is buying Israeli fizzy drink-maker SodaStream for $3.2 billion.
Dan Balilty/AP
Updated at 12:55 p.m. ET
PepsiCo has announced plans to buy Israel-based fizzy drink-maker SodaStream in a deal valued at $3.2 billion.
It's the latest foray into more-healthful offerings for the food and beverage giant, which has shifted from soft drinks toward products such as juices, hummus and oatmeal.
"PepsiCo and SodaStream are an inspired match," CEO Indra Nooyi, who has spearheaded the shift toward healthier products, said in a statement Monday. 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.
PepsiCo is in the process of expanding its water offerings. Along with water company Aquafina, it owns LIFEWTR (pH balanced water with added electrolytes) and Bubly (a sparkling water brand).
According to The Wall Street Journal, "Sparkling water has grown far more strongly than the overall bottled water category in the U.S., 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 Journal, "big brands are losing shelf space to smaller, trendier entrants and established players are scrambling for growth."
SodaStream was founded in 1903 by London Gin distiller W & A Gilbey. The company's fizzy drink-maker was a hot item in Britain in the 1970s and '80s, Reuters writes, "but its popularity faded as bottled sodas became cheaper."
In recent years, SodaStream was the target of an international boycott because it was operating in the occupied West Bank, in the Israeli settlement of Ma'ale Adumim. The controversy received major international attention when Scarlett Johansson started doing commercials for the company. At the time, the actress also was working with the charity Oxfam, which opposes Israeli settlements in the West Bank — a role she left in 2014 because of her work with SodaStream.
The company now operates a different factory, in southern Israel, and completely closed its West Bank factory in 2015, as NPR reported. About 500 Palestinians lost their jobs because of the move.
The Israeli firm's shares jumped by more than 9 percent Monday morning, after the deal was announced. It was unanimously approved by the boards of directors of both companies and is expected to close by January 2019 pending a SodaStream shareholder vote and regulatory approval.
FAQs
PepsiCo has announced it is buying Sodastream for $3.2bn (£2.5bn). Israel-based Sodastream makes a machine and refillable cylinders allowing users to make their own carbonated drinks.
How much did PepsiCo pay for SodaStream? ›
Six months after launching its own sparkling water brand, Bubly, the cola giant announced Monday that it is buying SodaStream International, the Israeli company behind the do-it-yourself soda maker, for $3.2 billion.
Is SodaStream owned by Pepsi? ›
While the brand stagnated for many decades after its introduction, it was revived in the 2000s, and in 2018, PepsiCo purchased Israel-based SodaStream International Ltd. for more than $3.2 billion.
Who is Bubbly owned by? ›
Does SodaStream Pepsi taste like the real thing? ›
I usually use half way of the measure cup with 4 pumps of C02 for optimum accuracy of authentic flavor. I will say it slightly taste like diet soda but all of the Sodastream flavors taste like that unless you go online and buy the soda syrup they sell for machines you see in fast food restaurants.
Does SodaStream actually save money? ›
How much can you save by switching to a SodaStream? If you make seltzer water at home with a SodaStream, one-can-per-day LaCroix drinkers can expect to save $150 per year while Canada Dry drinkers will save more like $121.
Is SodaStream healthier than Pepsi? ›
The addition of the artificial sweetener in SodaStream flavours is what gives them their lower-calorie status. So, if comparing 100mL of co*ke to 100mL of SodaStream soda mix reconstituted as per instructions, then the SodaStream drink is 'healthier' in that it contains less sugar and fewer calories.
Why did Pepsi buy SodaStream? ›
Few large companies have embedded sustainability and social impact into their operations, investments and values more effectively than Unilever has in the 18 years since it bought Ben & Jerry's. And PepsiCo's acquisition of SodaStream is an investment towards decision-making based on social and economic impact.
Who owned SodaStream before Pepsi? ›
Subsidiary of Cadbury Schweppes; purchase by Soda-Club
In 1998, SodaStream was bought by Soda-Club, an Israeli company founded in 1991 by Peter Wiseburgh, who from 1978 to 1991 had been Israel's exclusive distributor for SodaStream, creating the world's largest home carbonation systems supplier.
Is SodaStream still made in Israel? ›
Our working environment fosters a diverse workforce including Bedouins, Palestinians, and Israelis., all working side by side in our main manufacturing facility on the south of Israel. SodaStream was founded in 1903 in the UK and was an instant hit with the British upper class including the royal household!
Sodastream is owned by PepsiCo so the flavours will never be formulated to taste like co*ke or Sprite. The logical standard is Pepsi and 7Up.
Does Pepsi own Pellegrino? ›
Pellegrino (Italian pronunciation: [sampelleˈɡriːno]) is an Italian natural mineral water brand, owned by the company Sanpellegrino S.p.A, part of Swiss company Nestlé since 1997.
Does bubly have fake sugar? ›
In addition to boasting a calorie-free nutrition label, the beverages in the line also skip any sweeteners. They are instead flavored with "natural flavors," like those found in La Croix. That's right—there are zero added sugars and no artificial flavors. The only ingredients are carbonated water and natural flavor.
Is bubbly co*ke or Pepsi? ›
Bubly, PepsiCo's answer to LaCroix that launched in 2018, has hung around where others floundred, and now aims to shake up a sector that has seen some of its excitement wane.
Is SodaStream cheaper Pepsi? ›
In general, yes. It's cheaper to make your own carbonated beverages at home than it is to buy them in a store, although how much cheaper depends on how much bubbly water you drink, and how much fizz you want in your carbonated beverage.
Is SodaStream Pepsi better for you than normal Pepsi? ›
The addition of the artificial sweetener in SodaStream flavours is what gives them their lower-calorie status. So, if comparing 100mL of co*ke to 100mL of SodaStream soda mix reconstituted as per instructions, then the SodaStream drink is 'healthier' in that it contains less sugar and fewer calories.
Is the SodaStream worth it? ›
If you're looking for a healthier and more eco-friendly alternative to store-bought sodas, then the SodaStream is a great choice. It's easy to use, saves money in the long run, and offers a variety of flavors to suit your preferences. Not to mention, it's just plain fun to make your own fizzy drinks at home.
How long does SodaStream Pepsi last? ›
Pro tip: When using Pepsi or 7UP flavours, high carbonation level is recommended. One bottle of flavour makes about 9 litres of Ready to Drink.
