|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 allows users to take ordinary tap water and carbonate it to create soda water (or carbonated water) to drink. With the addition of one of over 100 different types of concentrated syrups and flavorings produced by Sodastream, owners can create 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.
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.
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.
Production facilities 
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 from the Palestinian Authority, who live in an arc stretching from Jericho to Ramallah; the other half of the employees are Palestinian residents of East Jerusalem. 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.
Gas canisters 
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.
Environmental awareness campaigns 
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."
Cage campaign 
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.
Banned advertisement 
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 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 because of the companies' primary manufacturing plant location in the West Bank industrial park of Mishor Adumim on occupied lands.
Sodastream has been criticized for operating the manufacturing plant in the West Bank by the CODEPINK, which accuses the company of profiting from the occupation, and Israeli non-governmental organizations Coalition of Women for Peace and Peace Now, as well as other human rights organizations. Sodastream employs 500 West Bank Palestinians, in addition to 400 Palestinians from East Jerusalem. Nabil Bisharap, an Arab Sodastream employee and 38-year-old father of six, said "my salary is good; my conditions are good. If people stop buying, almost 1,000 Palestinians won't be able to support their families."
In face of the criticism, Daniel Birnbaum, CEO of SodaStream, replied, "Our factories are apolitical. We don’t take sides in this conflict. (...) we are building bridges between us and the Palestinian population, and we provide our Palestinian employees with respectable employment opportunities and an appropriate salary and benefits. (...) I want people to finally realize that we’re talking about people and that peace is possible, despite the politicians. If there were another hundred companies like us extending a hand to the other side, we would have a peace agreement, because everybody wants it, including the Palestinians.
Activists have responded that SodaStream is just exploiting local cheap labor. According to company president Yonah Lloyd, Sodastream "offers benefits unheard of in the Palestinian work sector: free transportation to and from work, health insurance and salaries 'four to six times' the average Palestinian salary.
See also 
Further reading 
- "Kenwood Sodastream, 1978.". Science and Society Picture Library. Science Museum.
- SodaStream UK advert from 1980 on YouTube
- "Get busy with the fizzy" lyrics
- YouTube video about Sodastream's factory in Mishor Adumim
- SodaStream International Ltd.
- Leslie Bunder (1 September 2006). "Get busy with Israeli fizzy". Something Israeli.
- "Getting busy with the fizzy". Priority (25) (Australia Post).
- SodaStream Fizzes Up Global Market For Carbonated and Flavored Drinks. Wall Street Journal. November 13, 2012
- "Sodastream". Waitrose Food Illustrated. Waitrose. 12 September 2006. Retrieved 12 September 2006.
- David Smith (18 June 2006). "Wham! Big hair and Eighties pop make internet comeback". The Observer. Retrieved 12 September 2006.
- "Is The Next Hot Thing Your Own Cool Seltzer?". Jewcy.com.
- Sodastream breaks ground for Negev factory, Globes, 6 July 2011
- "SodaStream machines return". Telegraph. 8 December 2009. Retrieved 9 October 2010.
- "Carbonated drinks: a report on the supply by manufacturers of carbonated drinks in the United Kingdom". Competition commission. 15 August 1991.
- "Kraft and SodaStream in deal for Kool-Aid". The Chicago Tribune. Reuters. 18 July 2012. Retrieved 30 July 2012.
- "US HOT STOCKS: Guidewire, OpenTable, Papa John's, SodaStream". The Wall Street Journal. 27 February 2013. Retrieved 28 February 2013.
- Stilwell, Victoria (15 February 2013). "SodaStream Inside Samsung Fridges Spurs Rally: Israel Overnight". Bloomberg. Retrieved 15 February 2013.
- Melby, Caleb (14 February 2013). "SodaStream and Samsung Debut A Fridge With Sparkling Water Dispenser". Forbes. Retrieved 15 February 2013.
- "Aerating apparatus". 17 February 1981. Retrieved 12 September 2006.
- "SodaStream drops Get Busy With The Fizzy". PRNewswire. 20 May 1996. Retrieved 12 September 2006.
- "SodaStream is bringing the fizz back to the UK". SodaStream UK. 13 July 2010.
- "Food & Drink 1998". UK Activity Report (UK Business Park). 1 May 1998.
- "SodaStream". UK Activity Report (UK Business Park). 19 June 2003.
- Coletta, Louise (21 September 2012). "SodaStream boss Birnbaum gets 'busy with the fizzy'". BBC News. Retrieved 5 October 2012.
- Rose, Steve (18 September 2012). "SodaStream: Yves Béhar's fizzy drinks machine for the future". The Guardian. Retrieved 5 October 2012.
- "SodaStream partners with top designer Yves Béhar to launch the Source Soda Maker". SodaStream. 25 April 2012. Retrieved 5 October 2012.
- "Good Housekeeping Institute accolade for SodaStream". HousewaresLive.net. Faversham House Group. 23 January 2013. Retrieved 25 January 2013.
- "Sodastream revenue rose 53% in 2010". Globes. 1 March 2011. Retrieved 5 April 2012. "Sodastream's cash and cash equivalents rose to €52.9 million at the end of 2010, mostly due to the proceeds from the IPO in November."
- Koren, Hillel (3 November 2010). "SodaStream IPO makes a splash on Nasdaq". Globes. Retrieved 5 April 2012. "JPMorgan Securities LLC and Deutsche Bank Securities Inc. are the joint bookrunning managers for the offering."
- Tsipori, Tali (1 December 2010). "Rising bubbles". Globes. Retrieved 5 April 2012. "In early November, in an IPO on Nasdaq, it raised $125.3 million at $20 per share, making it the eighth largest Israeli IPO of all time over there."
- Bespoke Investment Group (23 November 2010). "2010's IPO Winners". Seeking Alpha. Retrieved 5 April 2012.
- Bespoke Investment Group (13 December 2010). "Top Performing IPOs in 2010". Seeking Alpha. Retrieved 5 April 2012.
- "SodaStream Rings The NASDAQ Stock Market Closing Bell". Nasdaq. 3 November 2010. Retrieved 5 April 2012. "In honor of the occasion, Daniel Birnbaum, Chief Executive Officer of SodaStream (SODA), will ring the NASDAQ Closing Bell."
- Zalik, Nir (1 December 2010). "SodaStream sales bubbled in Q3". TheMarker. Retrieved 5 April 2012. "In its IPO, the company, which makes machines to carbonate water and make flavored soda drinks in the home, raised $109 million at $20 per share and a market cap of $367 million."
- Tsipori, Tali (1 August 2011). "2 Sodastream investors sell shares at triple IPO price". Globes. Retrieved 5 April 2012. "Sodastream's share price rose 3.6% on Friday to $73.35, giving a market cap of $1.46 billion, 237% above its IPO price."
- Ryniec, Tracey (6 February 2013). "Bull of the Day: SodaStream (SODA)". Zacks Investment Research. Retrieved 6 February 2013.
- Zalik, Nir (20 October 2010). "SodaStream to float stock on Wall St.". Haaretz. Retrieved 26 June 2012.
- Munarriz, Rick Aristotle (1 February 2011). "SodaStream Wants to Sweden You Up". The Motley Fool. Retrieved 26 June 2012.
- Boyle, Matthew (26 June 2012). "SodaStream Plans to Enter U.S. Grocery, Drug Stores in 2014". Bloomberg. Retrieved 26 June 2012.
- "סודה לכל דורש" [Soda for everyone] (in Hebrew). Globes. 3 June 2012.
- Harvey, Christine (21 June 2012). "SodaStream Surges as Products Sell Out at Wal-Mart Stores". Bloomberg. Retrieved 26 June 2012.
- Fisher, Daniel (15 June 2011). "Will SodaStream's Bubble Ever Burst?". Forbes. Retrieved 26 June 2012.
- "Form 20F: Annual and Transition Report, page 17".
- Azulai, Yuval (4 April 2012). "Sodastream wins NIS 25m grant for Negev plant". Globes. Retrieved 26 June 2012.
- SodaStream to invest in Negev, The Times of Israel, 4 April 2012
- "FreedomValve". CO2 Doctor. Retrieved 3 October 2011.
- "Sodastream | FAQ: Why do I have to pay taxes on my Internet order?". Sodastream. Retrieved 3 October 2011. "The carbonator [carbon dioxide canister] remains the property of SodaStream at all times in accordance with the terms and conditions stated in the User License Certificate."
- Richard J. Kinch. "Carbonating at Home with Improvised Equipment and Soda Fountains".
- Nytt Juridiskt Arkiv. Arne Brunnberg. 1988. p. 183. Swedish Supreme Court, 1988-03-18, case number T577-86, 4 § 1 st. Trademarks Act (1960:644).
- "Oberlandesgericht München: U (K) 3622/06". Rechtsprechungsdatenbank. judicialis. Higher Regional Court Munich, verdict announced 01/02/2007, file number U (K) 3622/06 (rejection of appeal).
- Melby, Caleb (19 July 2012). "SodaStream's Moneymaking Battle Cry: Get Rid Of Plastic Bottles". Forbes. Retrieved 25 January 2013.
- Euromonitor 2009 - Beverage Packaging. As cited by SodaStream.
- "Environmentally Friendly". Sodastream. Retrieved 29 March 2012.
- Sodastream and the trouble with green marketing. 6th February 2013
- "שיתוף פעולה בין סודה סטרים לבין אדם טבע ודין" [Cooperation between Sodastream and the Israel Union for Environmental Defense] (in Hebrew). Israel Union for Environmental Defense. 29 March 2011. Retrieved 29 March 2012.
- Aharoni, Efrat (25 May 2011). "Sodastream to rebrand as green in Israel". Globes. Retrieved 29 March 2012.
- "Erin O'Connor Backs 'A World Without Bottles' Campaign". Female First. 14 April 2011. Retrieved 5 April 2012.
- Keeble, Andy (28 March 2012). "School eco team tackles beach litter". North Devon Gazette. Retrieved 29 March 2012.
- "Primary school awarded bursary for helping the environment". This Is The Westcountry. 25 March 2012. Retrieved 29 March 2012.
- Munarriz, Rick Aristotle (22 March 2012). "SodaStream Wants You to Hug a Tree, Drink a Soda". The Motley Fool. Retrieved 29 March 2012.
- "In Honor of World Water Day, SodaStream and Trees for the Future Announce 'Replant our Planet,' a Reforestation Program to Plant Hundreds of Thousands of Trees in Brazil". MarketWatch (Airport City, Israel; Silver Spring, Maryland). PR Newswire. 21 March 2012. Retrieved 5 April 2012.
- "Progetto Join the Stream" [Project Join the Stream] (in Italian). City of Venice. 23 May 2012. Retrieved 14 June 2012.
- Carrion, Kelly (20 July 2012). "Rosario Dawson helps kickoff 'Unbottle the World Day'". NBC Latino. Retrieved 31 July 2012.
- Hayut, Ilanit (21 June 2012). "SodaStream sends Coke message in 10,657 bottles". Globes. Retrieved 26 June 2012.
- Davidovich, Joshua (21 June 2012). "SodaStream tells Coke that copyright suit is garbage". The Times of Israel. Retrieved 26 June 2012.
- Melby, Caleb (18 June 2012). "New Cola War? Sodastream Refuses To Comply With Coca-Cola Cease-And-Desist Letter". Forbes. Retrieved 26 June 2012.
- Stanford, Duane D. (21 June 2012). "SodaStream Takes Marketing Tactic to Coca-Cola’s Hometown". Bloomberg. Retrieved 26 June 2012.
- Petrecca, Laura (11 January 2013). "Pepsi, Bud join forces to make Super Bowl splash". USA Today. Retrieved 25 January 2013. "SodaStream will have a humorous commercial that promotes sustainability and takes a jab at conventional bottle and can soft-drink marketers."
- Rocco, Matthew (9 January 2013). "U.K.-Banned SodaStream Ad Will Air During Super Bowl". Fox Business. Retrieved 25 January 2013.
- Parekh, Rupal (26 November 2012). "SodaStream Campaign by Alex Bogusky Gets Yanked in the U.K.". Advertising Age. Retrieved 25 January 2013.
- Thomas, Charlie (23 November 2012). "Sodastream Advert Pulled From I'm A Celebrity Slot For 'Denigrating Bottled Drinks'". The Huffington Post. Retrieved 25 January 2013.
- Sweney, Mark (28 November 2012). "SodaStream 'black' TV ad protests regulator's ban on original campaign". The Guardian. Retrieved 26 January 2013. "SodaStream's campaign, which in the end frame hints to viewers that the censored ad is available to watch on YouTube, is aiming to put pressure on regulators who are currently assessing an appeal by the company over its original TV ad onscreen, which is due to be decided on 3 December."
- Vinjamuri, David (27 November 2012). "SodaStream Scores Another PR Break: Bogusky's Ad Rejected In The UK". Forbes. Retrieved 26 January 2013. "But that’s hardly the kind of denigration that deserves censorship."
- Hall, Emma (4 December 2012). "SodaStream Seeks Legal Advice After Failed Appeal on U.K. Ad". Advertising Age. Retrieved 26 January 2013.
- Burns, Will (31 January 2013). "CBS Bans SodaStream Ad. Where's The Outrage?". Forbes. Retrieved 1 February 2013.
- Horovitz, Bruce (15 January 2013). "Ad legend bashes Coke, Pepsi in Super Bowl return". USA Today. Retrieved 25 January 2013.
- Stampler, Laura (4 December 2012). "That Awesome Banned SodaStream Commercial Is Going To Be A Super Bowl Ad". Business Insider. Retrieved 25 January 2013.
- "EU Eyes Exports from Israeli Settlements". Bloomberg Businessweek.
- "EU Court Allows Duties on Products from the Settlements". Spiegel Online.
- "EU court: West Bank, Gaza not Israeli". UPI.
- "Boycott SodaStream: Occupation is not Green!". CODEPINK.
- "Sodastream setting up plant within green line". Haaretz.
- "Boycott List - Products from the Settlements".
- Boycott Israel Push Against SodaStream Could Hurt Palestinian Workers. February 10, 2013
- Anti-Israel groups push product, performers boycott
- Embarrassment at Israeli President Shimon Peres's House
- "SodaStream Criticized For West Bank Plant". National Public Radio. February 4, 2013.
- "Palestinian groups call for SodaStream boycott". Foreign Policy Magazine. January 31, 2013.
- Anti-Israel groups push product, performers boycott
- Business data
- SodaStream International at Google Finance
- SodaStream International at Yahoo! Finance
- SodaStream International at Reuters
- SodaStream International SEC filings at SECDatabase.com
- SodaStream International SEC filings at the Securities and Exchange Commission