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SodaStream

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For the Australian band, see Sodastream (band).
SodaStream International Ltd.
Company typePublic
Nasdaq: SODA
IndustryCarbonated drinks
Founded1903
Headquarters
Airport City
,
Israel
ProductsHome Carbonation Systems
RevenueIncrease US$ 275.36 million (2011)
Increase US$ 27.36 million (2011)
Increase US$ 26.19 million (2011)
Number of employees
1000
WebsiteSodaStream
Footnotes / references
[1]
SodaStream

SodaStream (Nasdaq: SODA) is the maker of a consumer home carbonation product based on the principles of making a carbonated drink as originally invented by Guy Gilbey in 1903.[2][3] The device allows users to take ordinary tap water and carbonate it to create soda water (or carbonated water) to drink. Along with the addition of concentrated syrups and flavorings, owners can create carbonated beverages that are similar to the most popular brands of soda and energy drinks available to the general US and international marketplace. It was popular in the 1970s and 1980s when there were a number of brand name syrups available,[4][5] and, after the company merged with Soda-Club in 1998, it was relaunched with an emphasis on healthier drinks. Soda-Club is currently headquartered in Israel,[6] and has 13 production plants.[7]

Sodastream has been involved in numerous environmental projects, including waste reduction, beach cleanup and reforestation. In the UK (where it was first sold) the SodaStream machine is strongly associated with 1970s/1980s childhood nostalgia.[8]

Product

The SodaStream drinksmaker is a device that forces carbon dioxide gas (stored under pressure in a cylinder) into water, making it fizzy. The product includes a machine, a carbon dioxide cylinder, and one or more reusable beverage bottles (suitable for pressurizing). The bottle, filled with water, is threaded onto the machine, and with a button push or two, compressed CO2 from the cylinder is injected, creating carbonated water. Varieties of concentrated syrups are available, to create regular or diet soft drinks by adding a small amount of concentrate to the bottle after carbonation. When a cylinder is empty, it is returned to a supplier and a replacement cylinder is rented.

Different flavors are created by adding fruit-flavored concentrates. During its heyday, several famous brands were available in SodaStream concentrate form including Tizer, Fanta, Sunkist and Irn-Bru.[9] SodaStream also offers diet concentrates sweetened with Splenda, and is used as much for plain sparkling water as for soft drinks. Sodastream and Kraft Foods entered into a partnership in January 2012 involving the use of the Crystal Light and Country Time brand flavors with the Sodastream home carbonation system. In July of the same year the two companies expanded their partnership to include the Kool-Aid flavor line.[10]

Milkstream was a variation on the SodaStream for making milkshakes, created by the same company. The ingredients (milk, ice cream and Crusha syrup) were mixed in a tall glass and inserted into the machine, so that the wand extended into the glass to froth up the shake.

History

The forerunner of the machine, the "Apparatus for aerating liquids",[11] was created in 1903 by Guy Hugh Gilbey of the London gin distillers, W & A Gilbey Ltd.,[9] and was sold to the upper classes (including the royal household).[4] Flavoured concentrates such as cherry ciderette and sarsaparilla, were introduced in the 1920s, along with commercial carbonation machines,[3][4] and the first machine for home carbonation of drinks was produced in 1955.[9] The SodaStream was originally sold in the UK, but later spread to other countries, including Australia, New Zealand, and Germany.

SodaStream machines were popular during the 1970s and 1980s in the UK, and are associated with nostalgia for that period.[4][5] Their slogan, "Get busy with the fizzy", started as an advertising jingle in 1979 and proved so popular that they added it to their logo. The slogan was initially dropped in 1996 after 17 years,[12] but was reinstated in 2010 along with a new marketing campaign in the UK.[13]

Originally the company operated as a subsidiary of W & A Gilbey, Ltd.[9] In 1985, after various changes of ownership, SodaStream became a wholly owned subsidiary of Cadbury Schweppes, although it operated as an autonomous business within the group.[9] In 1998 SodaStream was bought by Soda-Club, an Israeli company founded in 1991 by Peter Wiseburgh, who from 1978 to 1991 had been Israel's exclusive distributor for SodaStream, creating the world's largest home carbonation systems supplier.[3][14] In 2003 Soda-Club closed the SodaStream factory in Peterborough, moving the company's gas cylinder refilling and refurbishment department to Germany.[15] Under the ownership of Soda-Club the brand has been relaunched in many markets with new machines, and new flavours, as of 2007 available in the United States, The Netherlands, Belgium, Sweden, Denmark, Finland, Germany, Italy, Norway, Iceland, Australia, New Zealand, Canada and South Africa.

Soda-Club still markets its drinks under the SodaStream brand in some countries, its application for the trademark "soda-club" having been successfully opposed in 1998 by Cantrell & Cochrane (Belfast) Ltd, owner of the trademark "club soda".[16]

2010 Nasdaq IPO

Sodastream International Ltd. went public on the Nasdaq stock exchange in November 2010.[17] The stock offering was jointly led by J.P. Morgan Securities and Deutsche Bank Securities.[18] At the time, the IPO was the eighth largest for an Israeli company on the Nasdaq[19] and during the year 2010 one of the top-performing IPOs generally.[20][21] To celebrate Sodastream's listing on the Nasdaq, CEO Daniel Birnbaum was invited to ring the exchange's closing bell on 3 November 2010.[22] By August 2011, Sodastream's market cap had risen from $367 million to $1.46 billion.[23][24]

Sales

Some 20% of households in Sweden owned Sodastream machines as of 2010.[25] In January 2011 the company marked the sale of its millionth soda maker in the country.[26] Europe accounts for 52% of Sodastream's sales.[27]

Since May 2012, Sodastream is sold in over 2900 Walmart locations in the United States. In June equity research firm Monness Crespi Hardt & Co. stated that Sodastream's machines were selling out at Walmart.[28][29] Sodastream's U.S. sales grew from US$4.4 million in 2007 to $40 million in 2011.[30]

Production facilities

SodaStream has 13 production facilities worldwide. Three are located in Israel and the West Bank and employ 1,100 people as of 2012. Sodastream's principal manufacturing facility is located in the West Bank settlement of Mishor Adumim. An additional plant, which began operating in 2011, is located in the Alon Tavor industrial zone near the Israeli city of Afula. A third plant, which also began operating in 2011, is located in Ashqelon and is where Sodastream produces syrups and flavors. The cornerstone for a fourth plant, projected to employ 500 people, was laid at the Idan HaNegev Industrial Park north of Be'er Sheva in 2011.[7][31][32]

Gas canisters

Pressurized carbon dioxide canisters are leased to consumers for a variety of applications, including paintball, welding, and fire extinguishers, and local vendors will refill them at low cost. Sodastream machines are not compatible with these canisters, nor are local CO2 vendors generally permitted to refill Sodastream canisters ("carbonators"), which include a proprietary valve designed to defeat refilling.[33] Sodastream does not sell their CO2 canisters to consumers, but lends them and expressly limits how they can be used in their User License Certificate.[34] These mechanisms effectively elevate the cost of refilling a tank to 10 to 20 times the going market rate.[35]

In Sweden in 1984, carbonic acid supplier Sydbrand, primarily a supplier of fire equipment, was sued successfully by Sodastream for trademark infringement for refilling Sodastream-labelled CO2 canisters.[36] In 2006, Sodastream lost a suit against the resale of its Alco2jet brand canisters on eBay on the grounds that the canisters were only lent, not sold.[37]

Environmental awareness

According to Sodastream's website, use of home carbonation systems reduces the amount of packaging waste from cans and bottles as well as the amount of pollution caused by the transport of bottled beverages.[38] In 2011 Sodastream partnered with the Israel Union for Environmental Defense to launch a joint initiative promoting waste reduction and an improvement in the quality of tap water.[39][40] Also in 2011, Sodastream launched a joint campaign together with Erin O'Connor to raise awareness to the effects of plastic bottle waste on the environment.[41] As part of the company's support for Climate Week, in 2012 Sodastream donated £1,000 to a school in Crediton, Devon in the United Kingdom to fund an educational beach cleaning initiative.[42][43] Sodastream partnered with Trees for the Future in 2012 to launch the Replant Our Planet initiative: for each home beverage carbonation system sold from its Rethink Your Soda product line, Sodastream committed to planting ten trees in Brazil.[44][45] Sodastream Italy and the Municipality of Venice partnered in 2012 to organize Join the Stream: fight the bottle, a cleanup initiative with its starting point at the Lido di Venezia.[46] Actress Rosario Dawson launched the first annual Unbottle the World Day in New York City in July 2012. The campaign, initiated by Sodastream in order to raise awareness to the impact of cans and plastic bottles on the environment, calls on the United Nations to designate one day of the year a "Bottle Free Day."[47]

Cage campaign

In 2010 Sodastream launched an international campaign aimed at raising awareness to bottle and can consumption. The campaign involves the display of 9-cubic meter cages in various countries, each containing 10,657 bottles and cans gathered by Sodastream from landfills. Begun in Belgium, the Cage campaign has since visited 30 countries with the message that the waste produced by one family over the course of five years from beverage containers – 10,657 bottles and cans – can be replaced by a single Sodastream bottle. When a cage went on display in Johannesburg, South Africa in 2012, Coca-Cola demanded that Sodastream remove its products from the cages and threatened to sue Sodastream. Sodastream responded by dismissing the threats and announcing that it would display the cage outside Coca-Cola's headquarters in Atlanta.[48][49][50][51]

Controversy

The EU's highest court ruled in 2010 that Sodastream was not entitled to claim a "Made in Israel" exemption from EU customs payments because of the companies' primary manufacturing plant location outside of Israel in the Israeli-occupied territories West Bank settlement of Mishor Adumim.[52][53][54]

Sodastream has been criticized for operating a manufacturing plant on land in the West Bank by the Israeli non-governmental organizations Coalition of Women for Peace[55] and Peace Now[56], as well as other human rights organizations.[57]

See also

References

  1. ^ "SODA Income Statement". Yahoo! Finance. 2011. Retrieved 5 January 2012.
  2. ^ Leslie Bunder (2006-09-01). "Get busy with Israeli fizzy". Something Israeli.
  3. ^ a b c "Getting busy with the fizzy". Priority. No. 25. Australia Post.
  4. ^ a b c d "Sodastream". Waitrose Food Illustrated. Waitrose. 2006-09-12. Retrieved 2006-09-12.
  5. ^ a b David Smith (2006-06-18). "Wham! Big hair and Eighties pop make internet comeback". The Observer. Retrieved 2006-09-12.
  6. ^ "Is The Next Hot Thing Your Own Cool Seltzer?". Jewcy.com.
  7. ^ a b Sodastream breaks ground for Negev factory, Globes, July 6, 2011
  8. ^ "SodaStream machines return". Telegraph. 8 December 2009. Retrieved 9 October 2010.
  9. ^ a b c d e "Carbonated drinks: a report on the supply by manufacturers of carbonated drinks in the United Kingdom" (PDF). Competition commission. 1991-08-15.
  10. ^ "Kraft and SodaStream in deal for Kool-Aid". The Chicago Tribune. Reuters. 18 July 2012. Retrieved 30 July 2012.
  11. ^ "Aerating apparatus". 1981-02-17. Retrieved 2006-09-12.
  12. ^ "SodaStream drops Get Busy With The Fizzy". PRNewswire. 1996-05-20. Retrieved 2006-09-12.
  13. ^ "SodaStream is bringing the fizz back to the UK". SodaStream UK. 2010-07-13.
  14. ^ "Food & Drink 1998". UK Activity Report. UK Business Park. 1998-05-01.
  15. ^ "SodaStream". UK Activity Report. UK Business Park. 2003-06-19.
  16. ^ S Probert. "IN THE MATTER OF TRADE MARK APPLICATION m 1455166 BY SODA-CLUB LTD TO REGISTER THE MARK SODA-CLUB" (PDF). The Patent Office.
  17. ^ "Sodastream revenue rose 53% in 2010". Globes. 1 March 2011. Retrieved 5 April 2012. Sodastream's cash and cash equivalents rose to €52.9 million at the end of 2010, mostly due to the proceeds from the IPO in November.
  18. ^ Koren, Hillel (3 November 2010). "SodaStream IPO makes a splash on Nasdaq". Globes. Retrieved 5 April 2012. JPMorgan Securities LLC and Deutsche Bank Securities Inc. are the joint bookrunning managers for the offering.
  19. ^ Tsipori, Tali (1 December 2010). "Rising bubbles". Globes. Retrieved 5 April 2012. In early November, in an IPO on Nasdaq, it raised $125.3 million at $20 per share, making it the eighth largest Israeli IPO of all time over there.
  20. ^ Bespoke Investment Group (23 November 2010). "2010's IPO Winners". Seeking Alpha. Retrieved 5 April 2012.
  21. ^ Bespoke Investment Group (13 December 2010). "Top Performing IPOs in 2010". Seeking Alpha. Retrieved 5 April 2012.
  22. ^ "SodaStream Rings The NASDAQ Stock Market Closing Bell". Nasdaq. 3 November 2010. Retrieved 5 April 2012. In honor of the occasion, Daniel Birnbaum, Chief Executive Officer of SodaStream (SODA), will ring the NASDAQ Closing Bell.
  23. ^ Zalik, Nir (1 December 2010). "SodaStream sales bubbled in Q3". TheMarker. Retrieved 5 April 2012. In its IPO, the company, which makes machines to carbonate water and make flavored soda drinks in the home, raised $109 million at $20 per share and a market cap of $367 million.
  24. ^ Tsipori, Tali (1 August 2011). "2 Sodastream investors sell shares at triple IPO price". Globes. Retrieved 5 April 2012. Sodastream's share price rose 3.6% on Friday to $73.35, giving a market cap of $1.46 billion, 237% above its IPO price.
  25. ^ Zalik, Nir (20 October 2010). "SodaStream to float stock on Wall St". Haaretz. Retrieved 26 June 2012.
  26. ^ Munarriz, Rick Aristotle (1 February 2011). "SodaStream Wants to Sweden You Up". The Motley Fool. Retrieved 26 June 2012.
  27. ^ Boyle, Matthew (26 June 2012). "SodaStream Plans to Enter U.S. Grocery, Drug Stores in 2014". Bloomberg. Retrieved 26 June 2012.
  28. ^ "סודה לכל דורש" (in Hebrew). Globes. 03 June 2012. {{cite news}}: Check date values in: |date= (help); Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)
  29. ^ Harvey, Christine (21 June 2012). "SodaStream Surges as Products Sell Out at Wal-Mart Stores". Bloomberg. Retrieved 26 June 2012.
  30. ^ Fisher, Daniel (15 June 2011). "Will SodaStream's Bubble Ever Burst?". Forbes. Retrieved 26 June 2012.
  31. ^ "Form 20F: Annual and Transition Report, page 17".
  32. ^ Azulai, Yuval (4 April 2012). "Sodastream wins NIS 25m grant for Negev plant". Globes. Retrieved 26 June 2012.
  33. ^ "FreedomValve". CO2 Doctor. Retrieved 3 October 2011.
  34. ^ "Sodastream | FAQ: Why do I have to pay taxes on my Internet order?". Sodastream. Retrieved 3 October 2011. The carbonator [carbon dioxide canister] remains the property of SodaStream at all times in accordance with the terms and conditions stated in the User License Certificate.
  35. ^ Richard J. Kinch. "Carbonating at Home with Improvised Equipment and Soda Fountains".
  36. ^ Nytt Juridiskt Arkiv. Arne Brunnberg. 1988. p. 183. Swedish Supreme Court, 1988-03-18, case number T577-86, 4 § 1 st. Trademarks Act (1960:644).
  37. ^ "Oberlandesgericht München: U (K) 3622/06". Rechtsprechungsdatenbank. judicialis. Higher Regional Court Munich, verdict announced 01/02/2007, file number U (K) 3622/06 (rejection of appeal).
  38. ^ "Environmentally Friendly". Sodastream. Retrieved 29 March 2012.
  39. ^ "שיתוף פעולה בין סודה סטרים לבין אדם טבע ודין" (in Hebrew). Israel Union for Environmental Defense. 29 March 2011. Retrieved 29 March 2012. {{cite web}}: Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)
  40. ^ Aharoni, Efrat (25 May 2011). "Sodastream to rebrand as green in Israel". Globes. Retrieved 29 March 2012.
  41. ^ "Erin O'Connor Backs 'A World Without Bottles' Campaign". Female First. 14 April 2011. Retrieved 5 April 2012.
  42. ^ Keeble, Andy (28 March 2012). "School eco team tackles beach litter". North Devon Gazette. Retrieved 29 March 2012.
  43. ^ "Primary school awarded bursary for helping the environment". This Is The Westcountry. 25 March 2012. Retrieved 29 March 2012.
  44. ^ Munarriz, Rick Aristotle (22 March 2012). "SodaStream Wants You to Hug a Tree, Drink a Soda". The Motley Fool. Retrieved 29 March 2012.
  45. ^ "In Honor of World Water Day, SodaStream and Trees for the Future Announce 'Replant our Planet,' a Reforestation Program to Plant Hundreds of Thousands of Trees in Brazil". MarketWatch. Airport City, Israel; Silver Spring, Maryland. PR Newswire. 21 March 2012. Retrieved 5 April 2012.
  46. ^ "Progetto Join the Stream" (in Italian). City of Venice. 23 May 2012. Retrieved 14 June 2012. {{cite web}}: Unknown parameter |trans_title= ignored (|trans-title= suggested) (help)
  47. ^ Carrion, Kelly (20 July 2012). "Rosario Dawson helps kickoff 'Unbottle the World Day'". NBC Latino. Retrieved 31 July 2012.
  48. ^ Hayut, Ilanit (21 June 2012). "SodaStream sends Coke message in 10,657 bottles". Globes. Retrieved 26 June 2012.
  49. ^ Davidovich, Joshua (21 June 2012). "SodaStream tells Coke that copyright suit is garbage". The Times of Israel. Retrieved 26 June 2012.
  50. ^ Melby, Caleb (18 June 2012). "New Cola War? Sodastream Refuses To Comply With Coca-Cola Cease-And-Desist Letter". Forbes. Retrieved 26 June 2012.
  51. ^ Stanford, Duane D. (21 June 2012). "SodaStream Takes Marketing Tactic to Coca-Cola's Hometown". Bloomberg. Retrieved 26 June 2012.
  52. ^ "EU Eyes Exports from Israeli Settlements". Bloomberg Businessweek.
  53. ^ "EU Court Allows Duties on Products from the Settlements". Spiegel Online.
  54. ^ "EU court: West Bank, Gaza not Israeli". UPI.
  55. ^ "Sodastream setting up plant within green line". Haaretz.
  56. ^ "Boycott List - Products from the Settlements".
  57. ^ "SodaStream setting up plant within Green Line". Haaretz.

Further reading

Retrieved from "https://en.wikipedia.org/w/index.php?title=SodaStream&oldid=515529873"