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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
Tamer Y. Abouzeid
22 Oct 14 17:26:23
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
AMas
22 Oct 14 17:20:02
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
AMas
22 Oct 14 17:15:15
RT @AbouAliZarif: SodaStream's gone flat, and kinda lukewarm. http://t.co/i8KGg4itWD $SODA http://t.co/H5tv9kvgha #BDS works. #BlockTheBoat
stockblaster14
22 Oct 14 17:14:59
Sodastream International Ltd (SODA) 20.74 $SODA Shares of SODA Down 30.0% Since Downtrend Call on Shares Comte http://t.co/h22kvuXrD3
gail
22 Oct 14 16:59:46
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
Wegie Ronin
22 Oct 14 16:47:09
RT @AbouAliZarif: SodaStream's gone flat, and kinda lukewarm. http://t.co/i8KGg4itWD $SODA http://t.co/H5tv9kvgha #BDS works. #BlockTheBoat
Arif K
22 Oct 14 16:46:49
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
News From Palestine
22 Oct 14 16:45:25
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
Sam Fisher
22 Oct 14 16:38:02
RT @AbouAliZarif: SodaStream's gone flat, and kinda lukewarm. http://t.co/i8KGg4itWD $SODA http://t.co/H5tv9kvgha #BDS works. #BlockTheBoat
Abou Ali Zarif
22 Oct 14 16:36:23
SodaStream's gone flat, and kinda lukewarm. http://t.co/i8KGg4itWD $SODA http://t.co/H5tv9kvgha #BDS works. #BlockTheBoat
paversarogers
22 Oct 14 16:36:13
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
Suzanne Gardinier
22 Oct 14 16:35:04
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
Gerald Bowen
22 Oct 14 16:32:48
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
kppotatoes
22 Oct 14 16:32:26
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
JewishVoiceForPeace
22 Oct 14 16:32:04
RT @themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http…
Kriszti
22 Oct 14 15:00:19
@themotleyfool This article does not mention the boycott of those opposing Israeli apartheid of the Palestinians. There's your answer. $soda
pananarama
22 Oct 14 14:55:40
@themotleyfool: Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/COqGkPiqkT $SODA (2/3)
$$$ Money $$$
22 Oct 14 14:33:11
$SODA was also in the mix of false buy out rumors. LOL. What a joke wall street playing with retailers
The Motley Fool
22 Oct 14 14:31:01
Ew. SodaStream's gone flat, and kinda lukewarm. 3 lessons from the stock's big fizzle: http://t.co/A00fXKNDPK $SODA http://t.co/uhwkXvgJwF
James P Worthy
22 Oct 14 12:02:26
$SODA Why SodaStream International, Ltd. Is Sinking in America http://t.co/3At4sQ2t28
Samuel Brown
22 Oct 14 11:30:54
$SODA Sodastream International Ltd (SODA) Tanks – Analysts React http://t.co/nrjTjVH68I
Jeffrey Blake
22 Oct 14 11:30:53
$SODA Why SodaStream International, Ltd. Is Sinking in America http://t.co/NwXekWeAxN
Eternity101
22 Oct 14 10:54:07
NO Fed POMO 2day -- BUT 2morrow - THURS --> $1.35 - $1.65 billion http://t.co/g10HBW9myr $TLT $TWTR $MGM $SODA $SPY $SPX $QQQ $NDX $DJIA
Market Int Center
22 Oct 14 10:30:03
Potential SodaStream $SODA Trade Targets 8.05% Return ( http://t.co/5R8Rx8GYqI )
Jeffrey Blake
22 Oct 14 09:33:16
$SODA Sodastream International Ltd (SODA) Tanks – Analysts React http://t.co/012eg4D7ia
Jack Trader
22 Oct 14 09:33:15
$SODA Why SodaStream International, Ltd. Is Sinking in America http://t.co/2CzNSDbQT0
Eternity101
22 Oct 14 09:24:46
u know what they say -- "sell into ANY pop" -- can visit later on. $TWTR $MGM $SODA
Anthony Allyn
22 Oct 14 08:37:26
I like $SODA on this pullback
Eternity101
22 Oct 14 08:23:17
shoot me whenever I tweet about that old tart called $SODA pop. it's fizzling. damn -- shd have known how fickle this one is. :(
Company i
22 Oct 14 08:18:12
$SODA Long right here. Swinging it. This should head towards gap filling. Plus rumors of a potential $40 buyout isn't a bad thing either.
Chayton Falke
22 Oct 14 08:15:07
Top Twenty Recent Exits #10: Covered $SODA short for a 24.76% gain in 11 days! #trading #SODA #forex #stocks
johnathan paper
22 Oct 14 07:33:58
$TASR calls, $AAN and $SODA puts. Aaron's is in a tough sector and soda machine isn't enough to have a 500m cap. Hoping Tasr beats.
Robert Kim
22 Oct 14 07:27:16
$SODA What ever happened to buyout imminent?
Stock Moo
22 Oct 14 06:54:16
$soda: SodaStream Schedules the Release of its Third Quarter 2014 Financial Results for Wednesday, October 29, 2014 http://t.co/gnZ4FUPCnM
Eternity101
22 Oct 14 06:48:19
RT @tymorapro: $SODA: At 1DyHIGH=21.85, hits:1, ch:+1.6%, 5NewHi:BrkPLo[+201.6%], AtgPivH3, 6:2Accel+, tf:0111111, LowFlt[20.8M], HiPctSht[…
Alexander Morris
22 Oct 14 06:46:22
$SODA: At 1DyHIGH=21.85, hits:1, ch:+1.6%, 5NewHi:BrkPLo[+201.6%], AtgPivH3, 6:2Accel+, tf:0111111, LowFlt[20.8M], HiPctSht[32%:5d]
Eternity101
22 Oct 14 06:43:13
c'mon $SODA - pop u old tart of a fart - let's see 23 then 25
Eternity101
22 Oct 14 06:20:47
RT @zerosum24: Tilson pumping $SODA and chart isn't half bad for breakout and gap play.. MACD looking ready to cross too - http://t.co/nP5o…
Eternity101
22 Oct 14 06:20:26
RT @Sqwii: For you large cap traders $SODA at 21.5 looks great long setup imho from bottom.
Eternity101
22 Oct 14 06:20:02
RT @Pzaa_Guy: $SODA - SodaStream Schedules the Release of its Third Quarter 2014 Financial Results for Wednesday, October 29 http://t.co/wm…
Stock Moo
22 Oct 14 05:54:12
$soda: SodaStream Schedules the Release of its Third Quarter 2014 Financial Results for Wednesday, October 29, 2014 http://t.co/Al8XDgROXo
BV Consumer Goods
22 Oct 14 05:35:21
$SODA SodaStream Schedules the Release of its Third Quarter 2014 Financial Results for Wednesday, Octo.. http://t.co/9gVq6pBH5q
Pzaa...Guy
22 Oct 14 05:33:23
$SODA - SodaStream Schedules the Release of its Third Quarter 2014 Financial Results for Wednesday, October 29 http://t.co/wmrgGlIYnE
NASDAQ
22 Oct 14 05:32:50
$SODA - SodaStream Schedules the Release of its Third Quarter 2014 Financial Results for Wednesday, October 29 http://t.co/iRuAHYEbIV
iHangout
22 Oct 14 05:11:41
http://t.co/l4qmOlz0qf Stock_Tracker: Stock DD Board: Sodastream International Ltd (SODA) 21.51 $SODA 3 http://t.co/JEW93sM7ee
Stock_Tracker
22 Oct 14 05:06:36
Sodastream International Ltd (SODA) 21.51 $SODA 3 Lessons Investors Can Learn From SodaStream Stock's Dramatic http://t.co/8HLCxfor9H
Cornholio
22 Oct 14 04:45:02
@zerohedge $SODA????
viliss
21 Oct 14 22:48:31
RT @Finance_Fan: #BDS target update: #SodaStream $SODA. Macy's stops stocking it. .@ScarIettJ might need 2 sell them from her home now http…
Chayton Falke
21 Oct 14 22:15:02
Top Twenty Recent Exits #10: Covered $SODA short for a 24.76% gain in 11 days! #trading #SODA #forex #stocks
Eternity101
21 Oct 14 21:29:59
$SODA ONLY resistance is around 22.61 and then it's time to fly away to the 25.60 range .. would luv to see that THIS week & burn all shorts
				
				
By  +Follow May 31, 2014 8:25AM
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