PepsiCo to Expands SodaStream Business (2024)

On the beverage side, one prime example of a Refill-at-home system is SodaStream, founded in 1903 in the U.K., with the invention of the aerating machine. 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.

The SodaStream Sparkling Water Maker is a home carbonation system that includes a machine, a carbon dioxide cylinder, and a plastic bottle designed to be reused for up to three years. PepsiCo also offers a range of bottle options for purchase separately, including glass carafes and dishwasher-safe, on-the-go containers. There are approximately 60 concentrate syrups to choose from, including soft drinks, flavored waters (PepsiCo’s bubly sparkling water brand), and kombucha.

PepsiCo to Expands SodaStream Business (1) Read this article on the Air Up scent-flavored, refillable drinking system, which recently made its debut in the U.S.

To create a carbonated beverage, consumers insert the CO2 cartridge into the back of the machine, place a bottle filled with water into the front, and push down on a carbonating block to create the carbonation. The consumer then adds the desired concentrate flavor to the sparkling water. They can also mix concentrates for a customized beverage. According to PepsiCo, by using the system, a consumer can save approximately 63 plastic bottles in a month, or 772 in a year.

To further minimize packaging waste, PepsiCo also offers a system whereby consumers can exchange their spent CO2 cylinders for new ones. With each online order, cylinders are shipped in a corrugated box that also contains a preprinted UPS label. Consumers are encouraged to keep the box for use in returning the empty cylinders. Cylinders can also be exchanged in-store. SodaStream then sterilizes, inspects, and refills the cylinders with fresh, dietary-grade CO2.

PepsiCo to Expands SodaStream Business (2)PepsiCo also offers its SodaStream system for office environments through SodaStream Professional.In early December 2022, PepsiCo announced that it will be pursuing four approaches to reusable packaging to double the percentage of all beverage servings it sells that are delivered through reusable models—from 10% to 20%—by 2030. PepsiCo is an Ellen MacArthur Foundation New Plastics Economy Global Commitment signatory, and its four approaches align with the four models outlined by EMF in its “Reuse – Rethinking Packaging”framework. Says PepsiCo, reuse is one of several critical levers it is using to meet its goals to reduce virgin plastic per serving by 50% by 2030 and to become Net Zero by 2040.

The company’s Refill-at-home strategy involves the expansion of its SodaStream business, both at home and in the workplace through SodaStream Professional. Says PepsiCo, “The widespread international availability of SodaStream and SodaStream Professional, and its continued growth, enables consumers to reinvent how they consume some of the world’s most loved beverage brands and personalize their choices in reusable containers, potentially eliminating the need for more than 200 billion plastic bottles by 2030.”

PepsiCo to Expands SodaStream Business (3) Read this story on Gatorade’s new smart, app-driven hydration system with a refillable bottle and recyclable refill pod.

PepsiCo adds that many of its brands, including Gatorade, Propel, Muscle Milk, and Evolve, are offered as concentrated powders or tablets that allow consumers to customize the drink to their preferences in their own containers—another option for Refill at home. As part of its goal to increase its reusable packaging options, the company says it plans to accelerate growth in its powder and concentrate business as well.

“Fundamentally transforming the traditional beverage consumption model will require making reusable and refillable options accessible and convenient, at scale, for consumers—and that’s what PepsiCo aims to do,” says Jim Andrew, chief sustainability officer for PepsiCo. “PepsiCo will accelerate our investment in disruptive innovation and advocate for policies that allow us to scale up reusable packaging options, platforms, and programs so that we can offer consumers a wide variety of alternative ways to enjoy their favorite beverages while moving away from reliance on single-use packaging.”

PepsiCo to Expands SodaStream Business (4) Read the full article on Refill-at-home systems from which this story was taken, “Refill-at-Home Packaging Takes Off Across Categories.”
PepsiCo to Expands SodaStream Business (2024)

FAQs

Why did PepsiCo acquire 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.

Does Pepsi still own SodaStream? ›

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.

What happened to SodaStream? ›

After it merged with Soda-Club in 1998, it was relaunched with an emphasis on healthier drinks, and went public on the Nasdaq stock exchange in November 2010. SodaStream is headquartered in Kfar Saba, Israel, and has 13 production plants. In August 2018, the company was acquired by PepsiCo for US$3.2 billion.

What is the strategy of SodaStream? ›

The design strategy identified key leverage points, such as premium materials, visual simplicity, approachable minimalism, and a more elevated, sophisticated approach to branding and communications. The Source strategy has raised awareness of the Sodastream brand and category among influencer audiences.

What is the purpose of a SodaStream? ›

SodaStream sparkling water makers enable consumers to transform ordinary tap water into sparkling water and flavored sparkling water at the touch of a button. Products are available at more than 80,000 retail stores across 45 countries. SodaStream products are environmentally friendly.

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 is SodaStream boycotted? ›

SodaStream, facing continued pressure from BDS and accusations of mistreating its Palestinian employees, closed its West Bank factory in 2014. Some BDS participants also boycott MoroccanOil, whose beauty products are manufactured in Israel.

Does SodaStream Pepsi taste like regular Pepsi? ›

4.5 stars, it has Diet Pepsi taste, maybe a little less carbonation than factory-made soda, but it works for me. I like the experience so far, so I expect I'll order more, maybe even subscribe after I get a baseline, which saves a few cents per bottle on orders. Good product!

Is SodaStream an Israeli company? ›

SodaStream was founded more than a century ago in the U.K. and later moved to Israel. PepsiCo bought the business in 2018. SodaStream has weathered past Israeli-Palestinian conflicts.

What is the disadvantage of SodaStream? ›

The gas canisters must be regularly replaced

The carbon dioxide cylinders that come with SodaStream must be regularly replaced depending on the level of carbonation required for your drinks. This creates a hassle should you ever run out of gas and have no replacement on hand.

Why can't you carbonate juice in SodaStream? ›

Another reason to not carbonate other liquids is to keep the SodaStream from getting clogged. Sticky liquids can be hard to clean off, and could eventually result in the device getting backing up or moldy.

What is the lifespan of a SodaStream machine? ›

The life span of a SodaStream is about two years.

Is SodaStream actually good for you? ›

In summary, is sodastream healthy? definitely enjoy your soda water. It's much better for you than drinking a soft drink because it doesn't have any sugar, but when it comes to your teeth, is soda water bad for your teeth? If you sip it all day then yes!

Who is the target market for SodaStream? ›

Sparkling water brand SodaStream has a 74% female audience across Instagram and Twitter. Typically married, its audience are aged 20-40, skewing slightly older (35-39) on Twitter specifically.

Is SodaStream successful? ›

Today, SodaStream is the #1 sparkling water brand in the world, selling to more than 45 countries and 80,000 retail stores across the globe.

Is SodaStream healthier than store bought soda? ›

SodaStream offers a natural and healthy alternative to sugar-packed sodas and can potentially save you a staggering 100,000 calories every year. You won't have to worry about consuming empty calories or gaining weight because you chose to go the healthy hydration route. SodaStream is also much more cost-effective.

What is the competitive advantage of SodaStream? ›

The competitive advantage of SodaStream is a differential advantage because its products differ from its competitors. Here the differential advantage is the soda maker that enables carbon dioxide to be forced into water at the touch of a button.

Why do people buy SodaStream? ›

A soda maker offers the convenience of having a refreshing fizzy drink at your fingertips, whenever you want it. No more lugging heavy bottles from the store or running out of your favorite beverage. Plus, with our Soda Sense refill and exchange program, you'll always have fresh CO2 canisters on hand.

How much Pepsi Max does SodaStream make? ›

A fresh way to make your favourite drink at home.

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.

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