PepsiCo buys Soda Stream for $3.2 billion
PepsiCo bought carbonated drink maker SodaStream for $3.2 billion on Monday, a move the beverage giant hopes will further help it adjust as consumers drink less traditional soda and opt more for flavored waters and other drinks.
The deal is also a boon to SodaStream, which has enjoyed a resurgence after being targeted by anti-Israel boycotters in the past. The Israel-based company, which produces machines that allow people to make fizzy drinks in their own homes, has positioned itself as a provider of a healthy product in contrast to traditional sugary, carbonated drinks.
PepsiCo Chairman and CEO Indra Nooyi — who is stepping down from the CEO post in October — called the companies "an inspired match" since both companies aim to reduce waste and limit their environmental footprint.
SodaStream CEO Daniel Birnbaum said that the deal marked a "validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world."
As consumers' tastes change, Purchase, New York-based PepsiCo has launched a sparkling, flavored water brand called Bubly, a nod to the success of drinks like La Croix.
Israeli Prime Minister Benjamin Netanyahu tweeted that the deal would "enrich the state's coffers."
Shares of SodaStream surged nearly 10 percent Monday, while PepsiCo's stock rose slightly.
/Source: News 95.5/
Aug. 20, 2018