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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
Phillip CFD
30 Oct 14 20:52:42
Research: SodaStream Intl Ltd - A Strategic Overhaul to arrest impaired growth; NEUTRAL with TP US$21 #stocks #trading $SODA
PhillipCapital
30 Oct 14 20:52:42
Research: SodaStream Intl Ltd - A Strategic Overhaul to arrest impaired growth; NEUTRAL with TP US$21 #stocks #trading $SODA
Dan Nathan
30 Oct 14 18:03:28
ICYMI: Name That Trade - Watered Down $SODA http://t.co/UpcStF5QNJ @EnisTaner
US Banking News
30 Oct 14 17:30:06
Sodastream International Price Target Cut to $22.00 $SODA http://t.co/MsSP2F9N8Y
Briefing.com
30 Oct 14 16:07:08
Get a 5-week view of upcoming #earnings reports http://t.co/eJaNlOxtzs $DB $SODA $AKAM $GLUU $NILE $SBUX $SIRI $PNRA $PSMT
David Vas
30 Oct 14 14:15:22
#BDS got what it wanted: unemployed palestineans. $SODA @SodaStream is closing its Meah Admunim plant & giving the jobs to Israelis in negev
Quantpost Cnsmr Good
30 Oct 14 13:51:53
$SODA News: "SodaStream's Decision To Close West Bank Factory A Real…" http://t.co/OwnMejzUrs Board view: https://t.co/TG92O7Ol33
Seeking Alpha
30 Oct 14 13:51:50
SodaStream's Decision To Close West Bank Factory A Real Game-Changer http://t.co/0qVQI33NmT $SODA
Market Newswire
30 Oct 14 12:02:38
SodaStream Misses Q3 Earnings, Cuts View; To Close Facility - October 30, 2014 - http://t.co/eA63Se7ooW $SODA #stocks #finance #newsfeed
Sleek Money
30 Oct 14 11:21:01
Deutsche Bank Cuts Sodastream International Price Target to $22.00 $SODA http://t.co/J5A1eZj1DB
Analyst Ratings
30 Oct 14 11:05:06
Sodastream International Ltd's PT cut by Deutsche Bank to $22.00. hold rating. http://t.co/ozPWZ7HTXR $SODA #SODA
US Consumer News
30 Oct 14 11:03:35
Sodastream International Ltd's PT cut by Deutsche Bank to $22.00. hold rating. http://t.co/esEGiFPaxV $SODA #SODA
Anurag Sharma
30 Oct 14 10:56:13
RT @LaMonicaBuzz: Thanks, $KO. $GMCR top S&P 500 stock. What's it mean for $PEP & $SODA? Great art by @gwenguns http://t.co/4vnnb0ohJy http…
Alan Tonelson
30 Oct 14 10:53:33
#Sodastream: "We are not giving in to the #boycott. We are #Zionist”: http://t.co/O9dOnVHI3I #Israel #WestBank #BDS $SODA
Aron Pinson
30 Oct 14 10:46:30
nice $SODA update/recap by @EnisTaner on @RiskReversal http://t.co/Nxomb2KWaY
Mr.Incredible
30 Oct 14 10:37:37
$SODA SodaStream target lowered to $22 at Deutsche Bank -- Earnings model opaque + future direction uncertain (22.04 +0.60)
GuruFocus
30 Oct 14 10:03:21
SodaStream International Stock Loses Steam After Dismal Third Quarter Results http://t.co/LG5Fp9A1Jc $SODA http://t.co/L7hzkf1Mx1
shannon
30 Oct 14 09:45:50
RT @LaMonicaBuzz: Thanks, $KO. $GMCR top S&P 500 stock. What's it mean for $PEP & $SODA? Great art by @gwenguns http://t.co/4vnnb0ohJy http…
US_proptrader
30 Oct 14 09:41:24
$CCJ $CHMT $LAKE $RGLD $SA $SODA $UNIS $VDSI $ZLTQ autocharts @ http://t.co/hj7PGeTQk3
Stock Signaling
30 Oct 14 09:31:03
Visual Stock Comparison Tool: http://t.co/Vtx6dLy0Nw : $TASR $SLCA $RFMD $BWLD $CLF $YHOO $SODA $YELP $DF $BBRY $AMD $IBIO $BAS $SRPT $CPE
kenold
30 Oct 14 09:22:47
RT @LaMonicaBuzz: Thanks, $KO. $GMCR top S&P 500 stock. What's it mean for $PEP & $SODA? Great art by @gwenguns http://t.co/4vnnb0ohJy http…
Paul R. La Monica
30 Oct 14 09:13:22
Thanks, $KO. $GMCR top S&P 500 stock. What's it mean for $PEP & $SODA? Great art by @gwenguns http://t.co/4vnnb0ohJy http://t.co/5839FeD89T
trendwhizo
30 Oct 14 09:13:12
$SODA on @BloombergTV justifying the decision
Jay Siegel
30 Oct 14 08:52:45
Big Soda space on fire (ex $SODA, of course) ..$KO $PEP $DPS all up >1% Reasons?
Enis Taner
30 Oct 14 08:23:20
$SODA a rumor-mongering mess in 2014. Trading near 2010 IPO level...took a detailed fundamental look in today's post: http://t.co/4YsldiUwrr
Raja
30 Oct 14 08:23:20
RT @david_wainer: You heard it here first: SodaStream to Close West Bank Factory http://t.co/diXPImRvyt via @BloombergNews #Israel #Palesti…
Dan Nathan
30 Oct 14 08:03:22
Name That Trade - Watered Down $SODA http://t.co/UpcStF5QNJ @EnisTaner
Jordan S. Terry
30 Oct 14 06:23:13
$SODA focusing now on sparkling water. Smart. Think in anti-soda/sugar/etc world, (flavored) sparkling becomes much more popular
#NoJusticeNoPeace
30 Oct 14 06:19:57
RT @david_wainer: You heard it here first: SodaStream to Close West Bank Factory http://t.co/diXPImRvyt via @BloombergNews #Israel #Palesti…
John F Presley
30 Oct 14 05:50:59
RT @StkConfidential: $BIDU, $FFIV, $HBI, $V, $MA, $AKAM, $DRII, $TRN targets raised; $ALK, $ALKS, $BBSI, $SODA cut; $ARRS both.
Lynn Hoggan
30 Oct 14 05:50:35
RT @StkConfidential: $BIDU, $FFIV, $HBI, $V, $MA, $AKAM, $DRII, $TRN targets raised; $ALK, $ALKS, $BBSI, $SODA cut; $ARRS both.
Paul Johnson
30 Oct 14 05:49:53
$BIDU, $FFIV, $HBI, $V, $MA, $AKAM, $DRII, $TRN targets raised; $ALK, $ALKS, $BBSI, $SODA cut; $ARRS both.
macs
30 Oct 14 05:10:42
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
ali hadi
30 Oct 14 04:40:15
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
FonsieTrader
30 Oct 14 04:36:12
Parabolic Sar Sell Signals 3/3 $NYRT $OI $PNRA $PX $RCAP $RES $S $SNH $SODA $SPPI $SPWR $SRC $SSYS $WEC $WEN $XEL $ZU http://t.co/vXlf7uJWoM
honeyblade
30 Oct 14 03:58:03
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
Tudie Tomlinson
30 Oct 14 03:54:17
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
Joe Douglas
30 Oct 14 03:31:55
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
Samzyxx
30 Oct 14 03:27:14
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
Sou Hammamet
30 Oct 14 03:22:51
PSP Investments 1of Canada’s largest pension managers own 3.2% of Sodastream the apartheid water company $SODA #BDS http://t.co/FRyLU4jKHL
Slow Loris Watch
30 Oct 14 03:19:25
RT @hammametsou: Sodastream pulls out of West Bank as sales fall amid Scarlett Johansson controversy http://t.co/FRyLU4jKHL #BDS $SODA http…
Raimo Kangasniemi
30 Oct 14 03:17:06
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
Sou Hammamet
30 Oct 14 03:16:38
What U Need To Know About The Scarlett Johansson & SodaStream Controversy. $SODA is down #BDS http://t.co/Fa3zmrxtwW via @TasneemN @buzzfeed
Sou Hammamet
30 Oct 14 03:15:18
ur pension managers "Public Sector Pension Investment Board" invested 3.2% in apartheid $SODA. it is going down! #BDS http://t.co/FRyLU4jKHL
Aaron Stein
30 Oct 14 03:13:51
RT @hammametsou: SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X…
Sou Hammamet
30 Oct 14 03:10:36
Apartheid investors Putnam, Morgan Stanley, Schmeidler, Fidelity, Janus shld divest their $SODA holding #BDS http://t.co/FRyLU4jKHL
Sou Hammamet
30 Oct 14 03:06:59
Apartheid investors Real Property CLAL Barclays Public Sector Pension Invt Board shld divest their $SODA holding #BDS http://t.co/gK0SB8ArqO
Sou Hammamet
30 Oct 14 03:01:11
SodaStream's stock falls after sales outlook disappoints. guess that's the price for Apartheid investors http://t.co/pba0X9GRz4 #BDS $SODA
Aysha
30 Oct 14 03:00:02
RT @hammametsou: Sodastream pulls out of West Bank as sales fall amid Scarlett Johansson controversy http://t.co/FRyLU4jKHL #BDS $SODA http…
Sou Hammamet
30 Oct 14 02:56:12
Sodastream pulls out of West Bank as sales fall amid Scarlett Johansson controversy http://t.co/FRyLU4jKHL #BDS $SODA http://t.co/yGRbrSYli6
				
				
By  +Follow May 31, 2014 8:25AM
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