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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
Riti Billo
27 Feb 15 14:45:11
RT @Finance_Fan: #BDS target update: #SodaStream $SODA. Macy's stops stocking it. .@ScarIettJ might need 2 sell them from her home now http…
Quantpost Cnsmr Good
27 Feb 15 13:49:57
$SODA News: "Bottom-Digging During Market Tops $BEBE $FOSL $FUJIY $HEAR $JAMN …" http://t.co/qXEykTTqky Board view: https://t.co/55VGaZbdH6
Portfolio Strategy
27 Feb 15 13:49:55
Bottom-Digging During Market Tops http://t.co/FvynmINrcs $BEBE $FOSL $FUJIY $HEAR $JAMN $JVA $LYTS $MW $PSMT $RAIL $SBUX $SODA
Seeking Alpha
27 Feb 15 13:49:54
Bottom-Digging During Market Tops http://t.co/hYJgKlL0b1 $BEBE $FOSL $FUJIY $HEAR $JAMN $JVA $LYTS $MW $PSMT $RAIL $SBUX $SODA
PrivateCapBlogger
27 Feb 15 13:40:20
SodaStream Troubles Worse Than Previously Thought $SODA http://t.co/pNCimkH1XD
CocaCola RT
27 Feb 15 13:06:04
RT @FlashRatingsHOT: $SODA has 5 analyst ratings in the last 2 days. Median target: $19. View here: https://t.co/TYBtqqikw3 #SODA
OM_giveaways
27 Feb 15 13:00:26
Massive stock options video library at http://t.co/7FHrzR6ryN $JRJR $SSYS $FEYE $FXCM $CSL $SNE $SODA $NEWT http://t.co/3qqFqVou3e
Sentiquant
27 Feb 15 13:00:17
#sentishiftdown $P $BAC $AIG $UGAZ $IEP $LNKD $RGR $WTW $SODA $MNKD #sentiquant 20150227 16:00:22:006
FlashRatingsHOT
27 Feb 15 12:45:56
$SODA has 5 analyst ratings in the last 2 days. Median target: $19. View here: https://t.co/TYBtqqikw3 #SODA
US_proptrader
27 Feb 15 12:14:13
$ARUN $BIOC $CRC $CRMD $ECR $GOGO $SODA $SSH $ZOES autocharts @ http://t.co/cLiki3R0GR
Quantpost Cnsmr Good
27 Feb 15 12:05:11
$GMCR $KO $SODA News: "SodaStream Troubles Worse Than Previously Thought $GMCR …" http://t.co/F919P5rXLS Board view: https://t.co/JHIFgxC6xB
Consumer Stocks
27 Feb 15 12:05:09
SodaStream Troubles Worse Than Previously Thought http://t.co/AUfg21iicp $GMCR $KO $SODA
Long & Short Ideas
27 Feb 15 12:05:09
SodaStream Troubles Worse Than Previously Thought http://t.co/Sq6U3PIo4F $GMCR $KO $SODA
Seeking Alpha
27 Feb 15 12:05:08
SodaStream Troubles Worse Than Previously Thought http://t.co/2aEpirSN8y $GMCR $KO $SODA
Food Dive
27 Feb 15 11:10:10
#SodaStream eyes new beverage markets: http://t.co/eXHKkjsNHt $SODA
Market Int Center
27 Feb 15 11:07:46
SodaStream $SODA Showing Resistance Near $17.75 ( http://t.co/hMMc15zv1S )
Khaxe Studios
27 Feb 15 11:03:50
RT @RatingsNetwork: Sodastream International Ltd downgraded by TheStreet to sell. http://t.co/dheIoBmxPW $SODA #SODA
US_proptrader
27 Feb 15 10:37:13
$BNFT $CLNE $CRIS $EYES $HZNP $NVAX $S $SODA $VHC autocharts @ http://t.co/cLiki3R0GR
HotKeyTrading
27 Feb 15 10:30:07
All-Time Lows: $WTW $NMIH $WBAI $ZU $SODA $DNOW $FUEL $ARR http://t.co/Vv2VEn80mr #daytrading #spy #investing #stocks #markets #wallstreet
Edward Graham
27 Feb 15 09:52:28
Commented on StockTwits: I'm so happy that your boss @JimCramer is now bearish on $SODA http://t.co/JZ8v1E0ZxY
WKRB News
27 Feb 15 09:51:59
Sodastream International PT Lowered to $18.00 $SODA http://t.co/EmjbPXjNem
StockNewsWires
27 Feb 15 09:47:02
$SODA: Sodastream International (SODA) Downgraded From Hold to Sell: http://t.co/cI4vDf7mnx
Trader Daily
27 Feb 15 09:46:13
Sodastream International $SODA Downgraded From Hold to Sell http://t.co/Veyr1bCycX
Breaking News Now
27 Feb 15 09:46:04
$SODA: Sodastream International PT Lowered to $21.00 (SODA): http://t.co/LaEZcT9jWJ
KELLY CLELLAND 1
27 Feb 15 09:42:35
RT @TheStreetAlerts: Sodastream International $SODA Downgraded From Hold to Sell http://t.co/OYIHfEW1tg
TheStreet Alerts
27 Feb 15 09:42:09
Sodastream International $SODA Downgraded From Hold to Sell http://t.co/OYIHfEW1tg
The Legacy News
27 Feb 15 09:41:30
Sodastream International PT Lowered to $19.00 $SODA http://t.co/8iYNN2oSju
HotKeyTrading
27 Feb 15 09:30:09
Annual Lows: $DFRG $CROX $LL $WTW $CNP $OGE $ANF $LKQ $ESV $NMIH $INO $QIHU $WBAI $SODA $SCHN http://t.co/Vv2VEn80mr #investors #daytrading
Bull Nation
27 Feb 15 08:47:04
I just hate $SODA, can some private company please just take this thing over. Or maybe start some rumours of takeover so I can offload!
#HelpYouGetGAINS
27 Feb 15 08:34:09
#Stocks to watch from The Value Line Investment Survey: $LOW $HPQ $SAM $DWA $TGT $TJX $SODA $DIN $CBI $NKTR $CPB $LL http://t.co/bmCNOo7gKJ
Antonio Costa
27 Feb 15 08:33:40
$SODA wants 18's
Mike Lanuto
27 Feb 15 08:30:36
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27 Feb 15 08:30:29
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geomoriarty
27 Feb 15 08:11:48
RT @SAlphaTrending: Lessons From A Dozen Years Of Short Selling http://t.co/Ioc792XZYz $VLKAY $POAHF $FRFHF $MBI $AGM $AFC $NFLX $CALL $SOD…
US_proptrader
27 Feb 15 08:09:12
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Trending Articles SA
27 Feb 15 08:00:06
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Jason Olive
27 Feb 15 07:56:57
RT @SeekingAlpha: Lessons From A Dozen Years Of Short Selling http://t.co/wNx93FB48P $VLKAY $POAHF $FRFHF $MBI $AGM $AFC $NFLX $CALL $SODA …
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27 Feb 15 07:54:14
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Robert Walker
27 Feb 15 07:50:57
RT @SeekingAlpha: Lessons From A Dozen Years Of Short Selling http://t.co/wNx93FB48P $VLKAY $POAHF $FRFHF $MBI $AGM $AFC $NFLX $CALL $SODA …
Alysia Sarkisian
27 Feb 15 07:44:49
RT @SeekingAlpha: Lessons From A Dozen Years Of Short Selling http://t.co/wNx93FB48P $VLKAY $POAHF $FRFHF $MBI $AGM $AFC $NFLX $CALL $SODA …
Steven Schoenfeld
27 Feb 15 07:41:11
Via @IBDinvestors: #Israeli stocks: $CYBR is thriving while $SODA fizzles http://t.co/OACNVomXZi” @BlueStarIsrael $ISRA #BIGI #IsraelTech
Steven Schoenfeld
27 Feb 15 07:39:59
Via @IBDinvestors: #Israeli stocks: #CyberArk is thriving while #SodaStream fizzles http://t.co/OACNVomXZi” $CYBR $SODA $ISRA #BIGI
Quantpost Cnsmr Good
27 Feb 15 07:39:16
$SODA News: "Lessons From A Dozen Years Of Short Selling $VLKAY $POAHF $FRFHF …" http://t.co/CYQaR3BvjR Board view: https://t.co/55VGaZbdH6
Long & Short Ideas
27 Feb 15 07:39:11
Lessons From A Dozen Years Of Short Selling http://t.co/o2aSs3AVr1 $VLKAY $POAHF $FRFHF $MBI $AGM $AFC $NFLX $CALL $SODA $DECK $LNKD $FB
Seeking Alpha
27 Feb 15 07:39:11
Lessons From A Dozen Years Of Short Selling http://t.co/wNx93FB48P $VLKAY $POAHF $FRFHF $MBI $AGM $AFC $NFLX $CALL $SODA $DECK $LNKD $FB
FonsieTrader
27 Feb 15 06:58:41
$SODA Perking up #stocks #trading #traders http://t.co/JW1wF10h1k
James DiPlata
27 Feb 15 06:21:58
RT @JulianClose_MIC: PriceWatch Alerts for $JUNO, $LOCO, $SSYS, $SODA & $OLED from InvestorsObserver today: http://t.co/nwE7TFeYvS #Options…
@Amy Anderson
27 Feb 15 06:17:20
RT @JulianClose_MIC: PriceWatch Alerts for $JUNO, $LOCO, $SSYS, $SODA & $OLED from InvestorsObserver today: http://t.co/nwE7TFeYvS #Options…
Investors Observer
27 Feb 15 06:17:04
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Julian Close
27 Feb 15 06:17:04
PriceWatch Alerts for $JUNO, $LOCO, $SSYS, $SODA & $OLED from InvestorsObserver today: http://t.co/nwE7TFeYvS #OptionsTrading #CoveredCalls
				
				
By  +Follow May 31, 2014 8:25AM
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