PepsiCo pushes further into health and wellness with its $3.3bn acquisition of SodaStream

By Catherine Sturman
PepsiCo Inc has announced its decision to acquire all outstanding shares of SodaStream for$144.00per share in cash, representing a 32% premium to the 30...

PepsiCo Inc has announced its decision to acquire all outstanding shares of SodaStream for $144.00 per share in cash, representing a 32% premium to the 30-day volume weighted average price and a transaction valued at $3.2bn.

Although Pepsi has gained a significant global foothold, with a staggering $63bn in net revenue in 2017, the emerging threat of a sugar tax, and the rise of health-conscious consumers have led companies to look towards the creation of healthier snack and beverage options, in order to remain competitive and guarantee further business growth.

Founded in Britain in 1903, SodaStream has become the largest sparkling water brand in volume in the world, providing flavoured water drinks at the click of a button, taking the soda industry by storm.  

"PepsiCo and SodaStream are an inspired match," said PepsiCo Chairman and CEO Indra Nooyi. "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. Together, we can advance our shared vision of a healthier, more-sustainable planet."

See also

PepsiCo's strong distribution capabilities, global reach, R&D, design and marketing expertise, combined with SodaStream's differentiated and unique product range will position SodaStream for further expansion and breakthrough innovation.

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

"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."

The transaction is another step the business’ Performance with Purpose journey, promoting health and wellness through environmentally friendly, cost-effective and fun-to-use beverage solutions. Believing its success to be linked to worldwide sustainability, SodaStream’s products will be a cost-effective, customised and fun alternate to traditional fizzy drinks, fully complementing Pepsi’s growing portfolio.

Acquired by Soda-Club in 1996, Pepsi is committed to keeping the business in Israel, a decision which has been positively received by Israeli Prime Minister, Benjamin Netanyahu.


Featured Articles

WHO Tightens air Quality Guidelines as Pollution Kills 7mn

World Health Organisation tightens air pollution guidelines to safeguard health; COVID prompts WHO to redefine 'air-borne' as it relates to diseases

WHO Health Chatbot Built on 'Humanised' GenAI

World Health Organisation's GenAI digital health tool is built using ‘AI humanisation’ tech & designed to ease burden on health workers & educate on health

Costco Weight-Loss Drugs Move Highlights US AOM Growth

Costco move to partner with online healthcare provider Sesame to provide members with weight-loss drugs including Wegovy signals US anti-obesity boom

AstraZeneca Company Profile, as CEO Soriot Lands pay Deal

Medical Devices & Pharma

US Academic Medical Centres 'Struggling' says McKinsey


J&J Community Initiatives Tackle US Healthcare Chasm

Medical Devices & Pharma