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Sodastream: A Political Landmine?

By  +Follow May 31, 2014 8:25AM
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sodastream, sodastream versus coke, sodastream West Bank and Gaza Strip, sodastream scarlett johanssonSodastream (SODA)  machines are not a new product. They are based a concept dating back to 1903. They are doomed to repeat their rise and massive fall of the '80s, just as the novelty demand for “Frankie Says Relax” or “I shot JR” T-shirts dried up.

“Get busy with the fizzy”

In the '80s in England, Margaret Thatcher was in power, there were ongoing miner strikes, a Falklands war, along with many other crisis, money was in short supply in most homes. McDonalds (MCP) had not yet taken over the local chipper, and the British Commonwealth was in slow decline.

A History That Will Repeat itself

Sodastream appeared to help quench everyone’s thirst for soft drinks by offering a cheaper alternative than store bought cans and bottles. It is true that the hundreds of flavors were far from tasty, the Orange, Lime and Cola flavors were merely sucrose and food coloring and tasted nothing like their store bought counterparts. The systems were a blessing for some families in tough times. The ability to have the unique contoured bottle in your lunch pack gave some a feeling of superiority as their peers had a carton of milk or nothing at all. You took great care at lunch, if you broke the glass bottle, your parents would not buy a new one. Only three bottles came with the system.

As quickly as the economy recovered the soda stream systems sat on shelves collecting dust. Their growth in Europe again forged by continent that has been hit by the economic collapse but now with an added political specter hanging over the company.

New Design, New Marketing Strategy

Thirty years later they get a celebrity endorsement by way Scarlett Johannson, how can any man or woman resist any message delivered by such a loved personality. Now their concentrated syrups are geared at the more fitness orientated, health conscious and environmentally friendly. How many of us though about our carbon footprint in light of Scarlett’s message? “What Would Scarlett Do?” T-shirts at should have been sold.

SodaStream is Here in the US. So Whats Different Now?

SodaStream is under a very serious political pressure right now. Finland, Norway and Sweeden have all boycotted SodaStream Products manufactured in their parent plant in Mishor Adumim factory. Canadian religious and international human rights groups have ask for boycotts on all SodaStream products, citing Human Rights violations at plants and exploitation of employees.

SodaStream sold to Soda-club in 1998 and has previously been owned by Cadury Shweeppes. With Soda-Clubs aggressive marketing and environmental campaigns they seem to be creating an illusion that Chris Angel wouldn’t attempt, the smoke and mirrors are being dismantled.

While their market share and their 2010 launch on the NASDAQ echoed a new era for the company, how can they sustain their market share when its failed as model before.

An attractive spokesperson, a tug at the hearts for the environmentally aware, and an efficient healthy choice of syrup options will still not able to sustain long term as even without the political backlash and negative press the model did not succeed before.

Sodastream has had several advertising mishaps, a superbowl advertisement in 2013 was rejected as quickly as Janet Jackson excuse of wardrobe malfunctions due to their direct reference to Coke and Pepsi.

The novelty of SodaStream along with political package that can be debated ad infinitum will eventually wear thin. The fitness crowd will simply turn to alternatives, the environmental groups will soon catch wind of the Human Rights allegations, and the households on shoestring budgets will just not bother getting a new gas cylinder eventually.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for SODA
ProVesting
28 Aug 15 04:50:02
$SODA: New SEC Filing for SODA: Form 6-K (No. 0001144204-15-052454): http://t.co/XdeuWav73O
Company SEC Filings
28 Aug 15 04:49:04
NEW SEC Filing for $SODA filed a moment ago: http://t.co/Yq2dwkGqCy http://t.co/Y35QMOQ2eL
BreakingStocksNews
28 Aug 15 03:29:03
$SODA: SodaStream International Ltd. (NASDAQ:SODA) Price Target Update: http://t.co/7aJ6P1lkSQ
DailyStockPicks
27 Aug 15 23:46:31
$ANFI huge bounce play as short attack put in doubt. 100%-200% upside potential $CYT $SODA $CASY investors read http://t.co/L1jwUV6Bag
naomihn2000
27 Aug 15 08:26:40
@Chrisyahahha @DIRT2GOLD @dave_meadows @gene70 $SODA did well. i think i am going to buy a Soda Stream this weekend :-) $SPY $SPX $CHK :-)
Large Void Bot
27 Aug 15 08:11:13
Daily Reversal (11:11): $SODA Last: 14.48; pHigh: 14.48; rVol: 0.874; pClose: 13.90; LOD: 13.9100; Perf: 4.2%
MarketBeatCom
26 Aug 15 11:26:37
Want automatic email alerts for $TXT $SODA $GLT $HPQ $DELL? Subscribe to MarketBeat Daily http://t.co/nSJuDsYidj
Trade Folly
26 Aug 15 11:12:54
Daniel Birnbaum thinks the consumer doesn't want exact dosing & carbonation every time they make a drink. This guy is on crack $SODA
Thomas Collins
26 Aug 15 08:16:18
$SODA Why SodaStream International Ltd. Stock Fell 15% in July http://t.co/TUXKrfoQR7
James P Worthy
26 Aug 15 08:16:17
$SODA SodaStream International Ltd. Short Interest Update http://t.co/eudUatb326
Tradometry
25 Aug 15 17:34:54
My $SODA calls will most likely expire worthless. Also, $TASR and $MU never materialized. Still like $PCRX when market strengthens.
Stocksguru99
25 Aug 15 07:39:32
This Service Made 20,000% Gains In the Last Month! Subscribe Here http://t.co/n4FmW1UTLN .. $IVAN $SODA $CPSS
Parahaberi.com
25 Aug 15 06:15:23
$SODA Bilgi Notu - 25.08 http://t.co/ZuNwY2xdg1 http://t.co/upulyeVjz2
StockNewsWires
24 Aug 15 21:53:03
$SODA: Zacks Short Term Rating on SodaStream International Ltd …: http://t.co/GqlYNfkGAs
Harry Walkman
24 Aug 15 16:11:12
$SODA Why SodaStream International Ltd. Stock Fell 15% in July http://t.co/JmlgpeaZvj
Peter Bardens
24 Aug 15 16:11:09
$SODA SodaStream International Ltd. (NASDAQ:SODA) Expected to Report $0.21 http://t.co/kOcZA4hHbG
Tom Silver
24 Aug 15 15:41:09
NASDAQ - 52 Week High/Low: August 24, 2015 : Market Closed= Highs : 5, Lows : 410 !!!= $YHOO $BIIB $TWTR $SODA $NWS $INTC ........and more
Virginia Lee
24 Aug 15 10:49:59
I did a @Euromonitor podcast on @SodaStreamUSA's 2nd qtr earnings and new sparkling #water machine strategy. http://t.co/1w9sYIGOrv $SODA
Market Int Center
24 Aug 15 09:29:45
SodaStream $SODA Trading Near $14.46 Support Level ( http://t.co/CTb6I3Pj5f )
naomihn2000
24 Aug 15 08:05:55
beautiful day! quick gains on $TWTR but still holding $SODA. up nicely. $SPY $SPX Thx for selling this morning gamblers (investors) $CHK
naomihn2000
24 Aug 15 07:03:39
@Chrisyahahha @dave_meadows @DIRT2GOLD @gene70 $SODA treated me well this morning. hope u boys both this morning. $SPY $SPX $TWTR $CHK
naomihn2000
24 Aug 15 07:01:00
@Chrisyahahha @dave_meadows @DIRT2GOLD @gene70 $SODA treated me well this morning.
Large Void Bot
24 Aug 15 06:38:16
09:38 New 52wk Lows: $SODA $STKL $TIF $WDR
ProVesting
24 Aug 15 00:39:02
$SODA $FULL $MRK: Latest Alerts: SodaStream International (NASDAQ:SODA), Full …: http://t.co/bQjupcD1qk
ProVesting
23 Aug 15 15:11:01
$SODA: Shares of SodaStream International Ltd. (NASDAQ:SODA) Drops by …: http://t.co/d3EYsRKdwy
Fatih TAŞÇI
23 Aug 15 11:24:21
$SODA #SODA SON 10 SENE DOLAR BAZLI AYLIK MUM GRAFİĞİ #BIST30 #BIST100 http://t.co/396TVKEijP
ace
22 Aug 15 20:04:36
@wesbury @jimcramer MOM&POPs lost big time on FANG,4horseman, $yelp , $NDLS , $SODA , $JOY , $loco , $amba , told iger buy 500k $dis at 102!
StockEarnings.com
22 Aug 15 13:10:17
$SODA Reported Earnings on 8/5 Before Open. Since then, stock has dropped 13%. Check it out. http://t.co/1iPX5aLp5v
Amir Dov
22 Aug 15 13:02:59
Sodastram's CO2 biz alone is worth much more than current valuation of $315m; Rev at $200m, growing 10% per year and highly profitable $SODA
Breaking News
21 Aug 15 09:52:03
$SODA: SodaStream Hits a 52-Week Low on Soft Q2 Sales and Profits: http://t.co/qmb9K9BMQb
Large Void Bot
21 Aug 15 06:33:15
09:33 New 52wk Lows: $SCTY $SODA $STR $UNT
InvestWithConf
20 Aug 15 17:38:02
$SODA is rated BUY, 45.4% upside by Wall Street analysts based on average ratings/targets http://t.co/v60GLpAIp5 http://t.co/rLy3TBjIER
BreakingStocksNews
20 Aug 15 12:08:03
$SODA: SodaStream International Ltd. (NASDAQ:SODA) Brokerage Rating …: http://t.co/gURSFltaqj
Trade Folly
20 Aug 15 11:07:52
Not impressed at all with the Dr Pepper version of Soda Stream. Only good is that its 13 calories! $SODA $PEP $KO http://t.co/FvqkHZh8FN
BreakingStocksNews
20 Aug 15 02:42:02
$SODA: SodaStream (SODA): Moving Average Crossover Alert: http://t.co/4tMSUURadf
Tradometry
19 Aug 15 12:26:06
Lost it all on $SODA. But am currently trying again with the Aug 28 Call at $16 http://t.co/ZARzbMlZQU
John Ablemann
19 Aug 15 10:17:29
$SODA Why SodaStream International Ltd. Stock Fell 15% in July http://t.co/aZN3bHaqfy
				
				
By  +Follow May 31, 2014 8:25AM
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