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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.


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Results for SODA
LikeFolio Loves
28 Aug 14 13:47:28
RT @momomiester: $GPRO after this next stop 50 but this looks like those like $CROX n $SODA.short-term cult like stock that gets pumped hig…
The Chief
28 Aug 14 10:49:07
Sold $OXY +160% and $SODA flat. Still like energy and metals here. My puts in $DANG and $BIDU working to. Good day overall
Robert Lakin
28 Aug 14 09:19:36
BDS Victory Over $SODA May Equal 900 Palestinians Out of Work http://t.co/PeXolaP8xS @BDSmovement @PACBI
G
28 Aug 14 08:51:26
$GPRO after this next stop 50 but this looks like those like $CROX n $SODA.short-term cult like stock that gets pumped higher
Stock Headlines
28 Aug 14 08:48:07
$SODA: How Will SodaStream (SODA) Stock React To This Analyst Action Today? http://t.co/nqrQpVyIFU http://t.co/qGzWQYL1uB
Tom Wrigley
28 Aug 14 08:05:49
$MNST 87.67 nHod (and trying to turn + on daily) interesting off the prev. $SODA post http://t.co/iTWvstRdt9
CG Focus List
28 Aug 14 07:49:49
Flux Power sees beverage co. ‘excitement’ for lithium lift truck batteries http://t.co/AucT5bP8In @BeverageDaily $FLUX $PRMW $BCB.TO $SODA
Tom Wrigley
28 Aug 14 07:32:36
$SODA 33.44 | says inventory issues that will pressure margins -Detwiler Fenton
Open Outcrier
28 Aug 14 07:25:37
$SODA hearing detweiller cautious
Adalah-NY
28 Aug 14 06:53:28
RT @istockheadlines: $SODA: Soros Dumps Stake in SodaStream International (SODA) http://t.co/9bYrJoRHVQ http://t.co/2YW1ycYRTR
stopsodastream
28 Aug 14 06:52:32
RT @istockheadlines: $SODA: Soros Dumps Stake in SodaStream International (SODA) http://t.co/9bYrJoRHVQ http://t.co/2YW1ycYRTR
Mitch
28 Aug 14 06:51:44
$soda picked up 10 Wkly 34s @.20
CODEPINK NYC
28 Aug 14 06:48:52
RT @istockheadlines: $SODA: Soros Dumps Stake in SodaStream International (SODA) http://t.co/9bYrJoRHVQ http://t.co/2YW1ycYRTR
Stock Headlines
28 Aug 14 06:47:42
$SODA: Soros Dumps Stake in SodaStream International (SODA) http://t.co/9bYrJoRHVQ http://t.co/2YW1ycYRTR
Market Int Center
28 Aug 14 05:33:42
Potential SodaStream $SODA Trade Has 7.70% Downside Protection ( http://t.co/mRRkqFHu3Q )
Seth Golden
28 Aug 14 05:05:28
$SODA Nice interview with Daniel, have not eliminated the West Bank plant as stated, more misreporting http://t.co/8eujPLCsLa
Seth Golden
27 Aug 14 09:57:31
$SODA Pull up your USD/ISL chart. Only chart that matters! Oh my!!
James P Worthy
27 Aug 14 09:01:46
$SODA 5 Things SodaStream International Ltd's Management Wants You to Know http://t.co/tDTiz7YoIB
Camilo
27 Aug 14 07:40:00
watch the breakout on $ONVO $WFM $SODA
Business News
27 Aug 14 05:47:44
$SODA: Will SodaStream Stock Continue to Lose Its Sizzle? http://t.co/Ld3BvAhEoX http://t.co/y7jNLqm9Qn
Perfor Mance
27 Aug 14 05:14:18
Option Millionaires: nlightn: $SODA,...SodaStream's Strategy For The U.S. Market Will Halt http://t.co/oDpqBnvNin
strader55
27 Aug 14 05:09:09
nlightn: $SODA,...SodaStream's Strategy For The U.S. Market Will Halt http://t.co/WEHvmR1oGh
Seeking Alpha
27 Aug 14 04:45:29
SodaStream's Strategy For The U.S. Market Will Halt The Decline In Revenues http://t.co/C5RspPMAzy $KO $SODA
Seth Golden
27 Aug 14 04:16:07
$SODA SodaStream to unveil new product line at London Design Festival in September
monestsignalen
27 Aug 14 02:08:03
bull flag signalen #aandelen http://t.co/ZkTHv8Q8wC $LPSN $EXEL $SODA
Mikael Furesjö
26 Aug 14 23:53:59
#Stock #Scan:< #NYSE starts #trading 27Aug2014 (part III) http://t.co/OIli4vIgZI $KBH $CTRX $INCY $OCR $CBST $PAA $R $BID $SODA $EDU $SCO
Stock News Updates
26 Aug 14 19:48:04
$SODA: Will SodaStream Stock Continue to Lose Its Sizzle? http://t.co/NpxQc53pBA http://t.co/R4qgGnAStV
Scott R
26 Aug 14 19:24:46
@stt2318 without looking I bet $ANGI chart looks similar or worse than $SODA both have horrible fundies
Dan
26 Aug 14 19:19:51
RT @stt2318: same for $SODA
stt2318
26 Aug 14 19:12:16
same for $SODA
DGPSTweets
26 Aug 14 18:11:00
$SODA Options Call : 50% Gain Or More Expected By / Before October 18th http://t.co/AxNue1hyVB …
DGPSTweets
26 Aug 14 18:02:46
10 Options Picks With 20% To 100% Gain Potential $AAPL $BIDU $FB $TSLA $GILD $HAIN $HLF $SODA $FSLR $SPY http://t.co/Je1zyXLz3X Going BOOM !
Market Int Center
26 Aug 14 12:01:32
SodaStream $SODA Showing Support Near $32.93 ( http://t.co/MVABl8mo4w )
Stocks in News
26 Aug 14 10:47:42
$SODA: SodaStream Is Surging http://t.co/7EcCv29gHb http://t.co/m1WKiMo5Pz
Becky Hiu
26 Aug 14 10:39:31
$SODA flagging
Scott Sherman
26 Aug 14 10:17:39
Buying $SODA here. Also want more $FB
DamnGoodChatroom
26 Aug 14 09:50:03
$SODA Options Call : 50% Gain Or More Expected By / Before October 18th http://t.co/UdI6ndyvNq …
George
26 Aug 14 08:27:55
$MINE NEWS OUT https://t.co/yfjjhd16ts $SODA $SBUX $PEP $MNST $KO $TWTR $FB $FITX
Leni
26 Aug 14 08:25:21
$SODA 34.29 long Joining you here @RedDogT3
Camilo
26 Aug 14 08:14:22
$SODA $SYN $WPCS mirando mirando
Bulls vs Bears
26 Aug 14 07:47:57
$SODA: Stocks in the Spotlight - Voxeljet AG (ADR) (VJET), Sodastream International ... http://t.co/cjnkwXr8Z0 http://t.co/cqVXAybxDl
DGPSTweets
26 Aug 14 07:40:22
$SODA Options Call : 50% Gain Or More Expected By / Before October 18th http://t.co/AxNue1hyVB
Scott Redler
26 Aug 14 07:16:41
$soda also looks good
Alexander Morris
26 Aug 14 07:12:36
$SODA: At 1DyHIGH=34.15, hits:2, ch:+1.2%, 0phNearHi, tf:7e, LowFlt[20.8M], HiPctSht[27%:5d], DyVol:126T:0.2x:0.1x, DyRng:1.6%:0.7x:0.5x
Serge Berger
26 Aug 14 06:47:18
$SODA is quietly on the move higher again today folks... http://t.co/04wOWeyZ6X
Seth Golden
26 Aug 14 06:40:17
$SODA looks like it was a solid buy. Taking the profits! Maintain core position.
LT
26 Aug 14 04:21:51
$SoDA http://t.co/BKP5rdg3KS
Mikael Furesjö
26 Aug 14 01:12:12
#Stock #Scan:< #NYSE starts #trading 26Aug2014 (part III) http://t.co/OIli4vIgZI $R $BID $SODA $EDU $AEGR $AMBA $WETF $PKI $CONN $SCO $KMT
Stocks in News
26 Aug 14 00:47:36
$SODA: SodaStream Pops On Q2 Top Despite U.S. Sales Woes http://t.co/CiHKq2CxCO http://t.co/4p3oU33D9Y
DamnGoodChatroom
26 Aug 14 00:45:09
10 Options Picks With 20% To 100% Gain Potential $AAPL $BIDU $FB $TSLA $GILD $HAIN $HLF $SODA $FSLR $SPY http://t.co/e2NGc7pWor
				
				
By  +Follow May 31, 2014 8:25AM
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