|Traded as||NASDAQ: SODA|
|Headquarters||Airport City, Israel|
|Products||Home Carbonation Systems|
|Revenue||US$ 436.32 million (2012)|
|Operating income||US$ 45.53 million (2012)|
|Net income||US$ 43.86 million (2012)|
SodaStream is the maker of a consumer home carbonation product based on the principles of making a carbonated drink as originally invented by Guy Gilbey in 1903. The device, like a soda syphon, carbonates water by adding carbon dioxide from a pressurized cylinder to create soda water (or carbonated water) to drink. The company also sells more than 100 different types of concentrated syrups and flavorings to make carbonated beverages. After the company merged with Soda-Club in 1998, it was relaunched with an emphasis on healthier drinks. It went public on the Nasdaq stock exchange in November 2010. Sodastream is currently headquartered in Israel, and has 13 production plants.
The SodaStream drinksmaker is a device that forces carbon dioxide gas (stored under pressure in a cylinder) into water, making it fizzy. The product includes a machine, a carbon dioxide cylinder, and one or more reusable beverage bottles (suitable for pressurizing). The bottle, filled with water, is threaded onto the machine, and with a button push or two, compressed CO2 from the cylinder is injected, creating carbonated water. Varieties of concentrated syrups are available, to create regular or diet soft drinks by adding a small amount of concentrate to the bottle after carbonation. When a cylinder is empty, it is returned to a supplier and a replacement cylinder is rented.
Different flavors are created by adding fruit-flavored concentrates. During its heyday, several famous brands were available in SodaStream concentrate form including Tizer, Fanta, Sunkist and Irn-Bru. SodaStream also offers diet concentrates sweetened with Splenda, and is used as much for plain sparkling water as for soft drinks. Sodastream and Kraft Foods entered into a partnership in January 2012 involving the use of the Crystal Light and Country Time brand flavors with the Sodastream home carbonation system. In July of the same year the two companies expanded their partnership to include the Kool-Aid flavor line. In 2013 Sodastream partnered with Ocean Spray to market three Ocean Spray flavors for use with the SodaStream home soda machine.
Milkstream was a variation on the SodaStream for making milkshakes, created by the same company. The ingredients (milk, ice cream and Crusha syrup) were mixed in a tall glass and inserted into the machine, so that the wand extended into the glass to froth up the shake.
The forerunner of the machine, the "Apparatus for aerating liquids", was created in 1903 by Guy Hugh Gilbey of the London gin distillers, W & A Gilbey Ltd., and was sold to the upper classes (including the royal household). Flavoured concentrates such as cherry ciderette and sarsaparilla, were introduced in the 1920s, along with commercial carbonation machines, and the first machine for home carbonation of drinks was produced in 1955. The SodaStream was originally sold in the UK, but later spread to other countries, including Australia, New Zealand, and Germany.
SodaStream machines were popular during the 1970s and 1980s in the UK, and are associated with nostalgia for that period. Their slogan, "Get busy with the fizzy", started as an advertising jingle in 1979 and proved so popular that they added it to their logo. The slogan was initially dropped in 1996 after 17 years, but was reinstated in 2010 along with a new marketing campaign in the UK.
Originally the company operated as a subsidiary of W & A Gilbey, Ltd. In 1985, after various changes of ownership, SodaStream became a wholly owned subsidiary of Cadbury Schweppes, although it operated as an autonomous business within the group. 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. In 2003 Soda-Club closed the SodaStream factory in Peterborough, moving the company's gas cylinder refilling and refurbishment department to Germany. Under the ownership of Soda-Club, and with CEO Daniel Birnbaum at the helm since 2007, the brand has been relaunched in many markets, with new machines and new flavors available in 41 countries around the world. In 2012 Sodastream teamed with Yves Béhar to introduce SodaStream Source, a line of soda machines designed with a special emphasis on sustainability. Béhar's design earned Sodastream a Good Housekeeping Institute seal of approval in 2013.
2010 Nasdaq IPO
Sodastream International Ltd. went public on the Nasdaq stock exchange in November 2010. The stock offering was jointly led by J.P. Morgan Securities and Deutsche Bank Securities. At the time, the IPO was the eighth largest for an Israeli company on the Nasdaq and during the year 2010 one of the top-performing IPOs generally. To celebrate Sodastream's listing on the Nasdaq, CEO Daniel Birnbaum was invited to ring the exchange's closing bell on 3 November 2010. By August 2011, Sodastream's market cap had risen from $367 million to $1.46 billion. During 2012, the stock experienced aggressive growth, with earnings per share growing 57%. Analysts expect another 27% growth in 2013 with earnings projected to grow 30% over the next 5 years.
Some 20% of households in Sweden owned Sodastream machines as of 2010. In January 2011 the company marked the sale of its millionth soda maker in the country. Europe accounts for 52% of Sodastream's sales.
Since May 2012, Sodastream is sold in over 2900 Walmart locations in the United States. In June equity research firm Monness Crespi Hardt & Co. stated that Sodastream's machines were selling out at Walmart. Sodastream's U.S. sales grew from US$4.4 million in 2007 to $40 million in 2011.
SodaStream has 13 production facilities worldwide. Three are located in Israel and the West Bank and employ 1,100 people as of 2012. Sodastream's principal manufacturing facility is located in Mishor Adumim - the industrial area of the West Bank settlement of Maale Adumim. This factory employs some 900 Palestinians in the West Bank. An additional plant, which began operating in 2011, is located in the Alon Tavor industrial zone near the Israeli city of Afula. A third plant, which also began operating in 2011, is located in Ashqelon and is where Sodastream produces syrups and flavors. The cornerstone for a fourth plant was laid at the Idan HaNegev Industrial Park north of Be'er Sheva in 2011. In 2012, Sodastream said that it will invest NIS 130 million in the construction of the plant, which it said would provide employment opportunities for around 1,000 workers, many of them Negev Bedouin.
Pressurized carbon dioxide canisters are leased to consumers for a variety of applications, including paintball, welding, and fire extinguishers, and local vendors will refill them at low cost. Sodastream machines are not compatible with these canisters, nor are local CO2 vendors generally permitted to refill Sodastream canisters ("carbonators"), which include a proprietary valve designed to defeat refilling. Sodastream does not sell their CO2 canisters to consumers, but lends them and expressly limits how they can be used in their User License Certificate. These mechanisms effectively elevate the cost of refilling a tank to 10 to 20 times the going market rate.
In Sweden in 1984, carbonic acid supplier Sydbrand, primarily a supplier of fire equipment, was sued successfully by Sodastream for trademark infringement for refilling Sodastream-labelled CO2 canisters. In 2006, Sodastream lost a suit against the resale of its Alco2jet brand canisters on eBay on the grounds that the canisters were only lent, not sold.
There is at least one product available to adapt standard CO2 canisters for use with SodaStream machines.
Environmental awareness campaigns
In its marketing, the company currently focuses on environmental attractiveness of using tap water and returnable gas cylinders. Sodastream has been involved in numerous environmental projects, including waste reduction, beach cleanup and reforestation.
Americans alone dispose of 130 billion bottles and cans every year, and 340 billion beverage bottles and cans are not recycled every year worldwide. According to Sodastream, use of home carbonation systems reduces the amount of packaging waste from bottles and cans as well as the amount of pollution caused by the transport of bottled beverages. According to an independent analysis by Carbon Trust, SodaStream is 75% less greenhouse gas intensive compared to generic colas sold in plastic (PET) bottles in the UK.
In 2011 Sodastream partnered with the Israel Union for Environmental Defense to launch a joint initiative promoting waste reduction and an improvement in the quality of tap water. Also in 2011, Sodastream launched a joint campaign together with Erin O'Connor to raise awareness to the effects of plastic bottle waste on the environment. As part of the company's support for Climate Week, in 2012 Sodastream donated £1,000 to a school in Crediton, Devon in the United Kingdom to fund an educational beach cleaning initiative. Sodastream partnered with Trees for the Future in 2012 to launch the Replant Our Planet initiative: for each home beverage carbonation system sold from its Rethink Your Soda product line, Sodastream committed to planting hundreds of thousands of trees in Brazil. Sodastream Italy and the Municipality of Venice partnered in 2012 to organize Join the Stream: fight the bottle, a cleanup initiative with its starting point at the Lido di Venezia. Actress Rosario Dawson launched the first annual Unbottle the World Day in New York City in July 2012. The campaign, initiated by Sodastream in order to raise awareness to the impact of cans and plastic bottles on the environment, calls on the United Nations to designate one day of the year a "Bottle Free Day."
In 2010 Sodastream launched an international campaign aimed at raising awareness to bottle and can consumption. The campaign involves the display of 9-cubic-meter cages in various countries, each containing 10,657 empty bottles and cans. Begun in Belgium, the Cage campaign has since visited 30 countries with the message that the waste produced by one family over the course of five years from beverage containers – 10,657 bottles and cans – can be replaced by a single Sodastream bottle. When a cage went on display in Johannesburg, South Africa in 2012, Coca-Cola demanded that Sodastream remove its products from the cages and threatened to sue Sodastream. Sodastream responded by dismissing the threats and announcing that it would display the cage outside Coca-Cola's headquarters in Atlanta.
A 30-second commercial promoting sustainability, showing soda bottles exploding each time a person makes a drink using his Sodastream machine, was banned in the United Kingdom in 2012. Clearcast, the organization that preapproves TV advertising in the U.K., explained that they "thought it was a denigration of the bottled drinks market." The same ad, crafted by Alex Bogusky, ran in the United States, Sweden, Australia, and other countries. An appeal by Sodastream to reverse Clearcast's decision to censor the commercial was rejected. A similar ad was expected to air during Super Bowl XLVII in February 2013 prior to being banned by CBS for jabbing at, and under pressure from Coke and Pepsi (two of CBS's largest sponsors). As a result, a different commercial containing exploding bottles was aired during Super Bowl XLVII that didn't mention Pepsi and Coke.
The EU's highest court ruled in 2010 that Sodastream was not entitled to claim a "Made in Israel" exemption from EU customs payments for products manufactured in the West Bank because Israeli settlements in occupied Palestinian territory are outside of the territorial scope of the EC-Israel Agreement.
Sodastream has been criticized for operating their manufacturing plant in the West Bank. Sodastream employs 900 West Bank Palestinians. According to Daniel Birnbaum, CEO of SodaStream, their factories are "apolitical" and they provide Palestinian employees with "respectable employment opportunities and an appropriate salary and benefits". Activists have responded that SodaStream is just exploiting local cheap labor.
- SodaStream International Ltd.
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- http://news.nationalpost.com/2013/12/05/united-church-of-canadas-israeli-boycott-campaign-an-assault-on-the-jewish-people-toronto-group-says/ United Church of Canada’s Israeli boycott campaign an ‘assault on the Jewish people,’ Toronto group says
- Business data
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- SodaStream International at Yahoo! Finance
- SodaStream International at Reuters
- SodaStream International SEC filings at the Securities and Exchange Commission
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- SodaStream UK advert from 1980 on YouTube
- "Get busy with the fizzy" lyrics
- YouTube video about Sodastream's factory in Mishor Adumim