Sector News

PepsiCo secures $3.2bn deal to acquire Israel-based SodaStream

August 20, 2018
Consumer Packaged Goods

PepsiCo has bought Israeli carbonated water machine maker SodaStream in a deal worth $3.2 billion.

The news comes just two weeks after PepsiCo announced that its CEO of 12 years, Indra Nooyi, will be stepping down, to be replaced by Ramon Laguarta.

The SodaStream deal continues Nooyi’s strategy of focussing on healthier products as consumers move away from sugary soft drinks.

Nooyi said: “PepsiCo and SodaStream are an inspired match. Daniel and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated.

“That focus is well-aligned with ‘performance with purpose’, our philosophy of making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more sustainable planet.”

PepsiCo said its strong distribution capabilities, global reach, and design and marketing expertise, combined with SodaStream’s unique product range will position SodaStream for further expansion and breakthrough innovation.

Earlier this month SodaStream posted its most successful quarter for earnings ever. Revenue for the quarter was $171.5 million.

SodaStream CEO Daniel Birnbaum said: “Today marks an important milestone in the SodaStream journey. It is validation of our mission to bring healthy, convenient and environmentally friendly beverage solutions to consumers around the world.

“We are honoured to be chosen as PepsiCo’s beachhead for at-home preparation to empower consumers around the world with additional choices.

“I am excited our team will have access to PepsiCo’s vast capabilities and resources to take us to the next level. This is great news for our consumers, employees and retail partners worldwide.”

PepsiCo CEO-elect Ramon Laguarta added: “SodaStream is highly complementary and incremental to our business, adding to our growing water portfolio, while catalysing our ability to offer personalised in-home beverage solutions around the world.

“From breakthrough innovations like Drinkfinity to beverage dispensing technologies like Spire for foodservice and Aquafina water stations for workplaces and colleges, PepsiCo is finding new ways to reach consumers beyond the bottle, and today’s announcement is fully in line with that strategy.”

Last month PepsiCo recorded a net sales increase of 2% in its second-quarter results, thanks to the strong performance of its Frito-Lay North America unit.

However, the company’s largest unit – North America beverages – recorded a net revenue decline of 1% to $5.19 billion and operating profit dropped by 16%.

PepsiCo has been under pressure to adapt to changing consumer tastes as consumption of carbonated soft drinks dropped to a 32-year low in the US last year, according to Beverage-Digest.

By Jules Scully

Source: FoodBev

comments closed

Related News

May 17, 2024

IFF announces CFO retirement plan

Consumer Packaged Goods

IFF has announced that its chief financial and business transformation officer, Glenn Richter, will retire on 31 December 2024, following a three-year tenure with the company. IFF has initiated the process of selecting a successor for the CFO position, considering both internal and external candidates.

May 17, 2024

Saputo’s president and CEO to depart from role

Consumer Packaged Goods

Saputo has announced that its president and CEO, Lino Saputo, will transition to the role of executive chair of the board. The transition is set to take place on 9 August, when Carl Colizza, the company’s current president and COO for North America, will assume the position.

May 17, 2024

Nestlé to invest BRL 1bn to strengthen Brazilian coffee sector

Consumer Packaged Goods

The coffee giant said the funding will be used to install new tech, such as roasting equipment, increasing production line flexibility to make new products and flavours – including higher value-added products, – and technology updates to improve sustainability.

How can we help you?

We're easy to reach