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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
Trading Alpha
19 Sep 14 22:19:30
$AA, $ADS, $AVB, $COG, $CPB, $HRB, $HOG, $TEG, $TAP, $MNST, $OI, $PSA, $SODA, $ADT, $DIS Entry Points: https://t.co/OMx3q0IU2s
Stock Signaling
19 Sep 14 16:31:24
Top Stocks (By Trading Liquidity): $BTU $LIVE $NQ $KBH $DATA $SODA $YELP $SALE $ISR $MHR $FUEL $MAR $JDSU $LULU $CTSH http://t.co/Vtx6dLy0Nw
Marshall Hargrave
19 Sep 14 15:46:07
KeyBanc: Lululemon nice fit for VFC Corp. http://t.co/xKRfGh1Wxt $LULU turning into $SODA w/ constant M&A spec
Trading Alpha
19 Sep 14 13:49:54
$SODA Short Entry: 31.65 http://t.co/8Lopjsw2b2
ProfessorKev
19 Sep 14 10:47:17
$BABA fizzling so badly it should buy $SODA right now.
Ani Anirudhan
19 Sep 14 10:30:17
$SODA bought a small lottery position at 32 http://t.co/0iEPOAzVOb
Stock Signaling
19 Sep 14 07:01:18
Top Stocks (By Trading Liquidity): $LIVE $NQ $KBH $DATA $SODA $YELP $SALE $ISR $MHR $FUEL $MAR $JDSU $LULU $CTSH $HDS http://t.co/Vtx6dLy0Nw
Market Int Center
19 Sep 14 06:01:01
SodaStream $SODA Trading Near $31.32 Support Level ( http://t.co/ZWcYAWOpzz )
Frim Company
19 Sep 14 05:00:56
RT @zozotrader: $SODA UK chatter again offer 46.00
Frim Company
19 Sep 14 05:00:52
RT @ACInvestorBlog: $SODA spiking higher in pre-market following rumors of a potential acquisition. $46
Frim Company
19 Sep 14 05:00:49
RT @ACInvestorBlog: "@StockTwits: Whoa! Private Equity "@FinancialJuice: The Times writes that KKR may offer USD 46/shr to buy SodaStream $…
Frim Company
19 Sep 14 05:00:32
RT @markflowchatter: U.K.'s Times has a piece out today on $SODA. Specifically mentions KKR may offer $46 to buy $SODA. The UK Times very c…
JMS
18 Sep 14 18:41:59
RT @WizardofStocks: Its unusual for $SODA to box in as many candlesticks as it has the past couple of days. This means GAME CHANGING NEWS i…
Mark A Holder
18 Sep 14 18:33:26
RT @LaMonicaBuzz: $BABA should buy $SODA. #sarcasm
Seehoo
18 Sep 14 17:39:45
Markets wrap: Equities Push Higher As Commodities Race For The Bottom $RAD $SODA $MSCI via @benzinga http://t.co/3Xm1l7NTHR
Bidness Etc
18 Sep 14 17:15:06
Sodastream traded up 4% in early market hours today on a new round of buyout rumors http://t.co/HWtLi5y3Hq $SODA
Mikael Furesjö
18 Sep 14 14:43:27
#Stock #Scan < #NYSE starts #trading 19Sep2014 (part2) http://t.co/mSZwqDsY20 $OCR $GNRC $CBST $PAA $FSL $TWTC $KERX $SODA $BCS
Peter Bardens
18 Sep 14 14:32:13
$SODA SodaStream International Ltd. Buyout Buzz Is Fizzing Again http://t.co/ugBsWkMp6P
Pasi Ylihuttula
18 Sep 14 13:31:32
SodaStream Reportedly Courted By Beer Makers http://t.co/9Rw4U1oO02 #IBDNews käyttäjältä @IBDinvestors $SODA $BUD $SBUX $KO $GMCR $PEP
Stock Signaling
18 Sep 14 13:31:16
Top Stocks (By Trading Liquidity): $LIVE $NQ $DATA $SODA $YELP $SALE $ISR $MAR $JDSU $LULU $CTSH $HDS $ZU $WB $VNET http://t.co/Vtx6dLy0Nw
theWizardofStocks
18 Sep 14 12:58:43
Its unusual for $SODA to box in as many candlesticks as it has the past couple of days. This means GAME CHANGING NEWS is coming! #BUYOUT
Bidness Etc
18 Sep 14 12:18:31
#SodaStream International Ltd: The Buyout Rumors Just Keep On Coming http://t.co/l3WXbIYeri $SODA
stockpucker
18 Sep 14 11:52:39
It's SodaStream rumor time again http://t.co/MsOgQHaAWZ $SODA $SBMRY
Aaron
18 Sep 14 11:44:28
so 25th time is NOT a charm? $soda #sodastream #wallstreetrumors
Fred Twick
18 Sep 14 10:21:49
$LOL "@lamonicabuzz: $BABA should buy $SODA. #sarcasm"
Paul R. La Monica
18 Sep 14 10:20:45
$BABA should buy $SODA. #sarcasm
Paul R. La Monica
18 Sep 14 10:20:11
interesting that $SODA up less than 1% despite even more rumors of who might buy it. $KKR? $SBMRY? $DEO? Remember when it was $SBUX or $PEP?
Bidness Etc
18 Sep 14 10:08:02
#SodaStream International Ltd: The Buyout Rumors Just Keep On Coming http://t.co/l3WXbIYeri $SODA
garabato
18 Sep 14 09:50:23
RT @ACInvestorBlog: $SODA spiking higher in pre-market following rumors of a potential acquisition. $46
Hipster
18 Sep 14 08:44:20
One of these days the $SODA rumors will be true and shorts will be effed
Brian Bolan
18 Sep 14 08:39:52
$SODA Maximus doubts @goldenseth in a big way. http://t.co/DFRC3lBQNn
Eternity101
18 Sep 14 08:26:00
$SODA 's jerking me around...an many others. pop ...then fizzle. one of these days... $20+++ POP
theWizardofStocks
18 Sep 14 07:52:38
If your a short seller and your betting against the Jews running $SODA stream then good luck to you and your investors. #MarginCallcoming
theWizardofStocks
18 Sep 14 07:45:15
Seriously if $PEP lets $SODA get bought out by a UK firm then Indra Nooyi needs to get fired and replace her with a person of vision
NTI
18 Sep 14 07:44:28
$soda bot the rumor. under water so far. see how it trades today
Stock Signaling
18 Sep 14 07:01:21
Top Stocks (By Trading Liquidity): $NQ $DATA $SODA $YELP $SALE $ISR $MAR $JDSU $LULU $CTSH $HDS $ZU $WB $VNET $IDTI http://t.co/Vtx6dLy0Nw
garabato
18 Sep 14 06:42:15
RT @zozotrader: $SODA UK chatter again offer 46.00
Eric Shaw
18 Sep 14 06:26:49
My list: $SODA $TKAI $EMKR $CAG $VVUS $AVNR $PIR $RAD $MCHX $CLR $RAX $YHOO
Chris Kelly
18 Sep 14 06:25:36
It's SodaStream rumor time again http://t.co/nEg1VZzGMP $SODA, $SBMRY
A Gap Trader
18 Sep 14 06:20:49
GAP UP - $CAG $PWE $CMGE $CY $UBNT $XRS $SODA $STM $WWAV $TKAI $ISIS - http://t.co/SqMF04L72X #gapup #gaptrading #daytrading #stockmarket
LouisLouie
18 Sep 14 06:15:59
RT @zozotrader: $SODA UK chatter again offer 46.00
LouisLouie
18 Sep 14 06:14:17
RT @zozotrader: $SODA 35% short interest
Bruce Tennen
18 Sep 14 06:08:38
Scottish vote for independence..iPhone goes on sale Fri & Alibaba debuts its IPO tomorrow. Lots of goodies. Watch $YHOO $SODA $CAG $UNFI
R PALMER
18 Sep 14 06:08:18
RT @financialjuice: The Times writes that KKR may offer USD 46/shr to buy SodaStream $SODA #stocks
Anmol Singh
18 Sep 14 06:04:52
Focus List for today $MCHX $PIR $WLT $CAG $VVUS $ZUMZ $XXII $PWE $SODA $TSL $CGEN $F $GOGO $MLHR $KMI These are my main watches for today
SMB Capital
18 Sep 14 06:04:14
Stocks from the SMB Scanner: $NEWM, $EPR, $PIR, $MOBI, $SODA http://t.co/jYXN3I0zNV
Day Trade Alerts
18 Sep 14 06:03:49
RT @theflynews: $PIR $RAD $SODA $EMKR $VVUS $AUXL $XXII $EPIQ $CAG $SBMRY $DEO $CLR $MCHX $ALL On The Fly: Pre-market Movers: ... http://t.…
Pristine Trading
18 Sep 14 06:03:11
ESP Gap Up: $VVUS $PWE $STLD $SODA $ERIC #stocks #stockmarket
Almost a Trader
18 Sep 14 06:01:08
Watching: $YHOO (re: $BABA) $CAG $PIR $SODA - $SOCL stocks - $P $FB $TWTR $GPRO #stocksinplay #scanning Very little conviction this AM
				
				
By  +Follow May 31, 2014 8:25AM
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