Where Does Sodastream International Ltd (SODA) Stand?

SodaStream is known for its partnerships with some of the leading companies in the world, including Samsung. After unveiling a new appliance with Samsung, the company announced a partnership with Ocean Spray for newer flavors.

Weaknesses

Probably, the biggest weakness for the company is the flavoring of its sodas. Even though there are numerous types of syrups, critics say the sodas just don’t taste as good as those in the market. However, with partnerships like Kraft, SodaStream could soon take its flavorings to another level.

Another weakness would be the company’s type of market. Not many people would want to purchase a soda maker for their house, especially if they’re not regular drinkers. PepsiCo is able to get product into the mouths of salty snack eaters.  SodaStream, on the other hand, can only people who drink soda’s regularly.

Sodastream International Ltd (NASDAQ:SODA) CO2 canisters are not available in all retail stores.  While it has improved distribution, this remains a major hangup.

Ops and threats

SodaStream is still a relatively new company and, therefore, has numerous opportunities going forward.  Emerging markets and BRIC nations have yet to be effectively tapped.

SodaStream will continue to move towards new and profitable partnerships.  SodaStream’s recent deal with Whirlpool Corporation (NYSE:WHR) for KitchenAid soda makers shows its potential.

SodaStream will continue to face threats from the industry giants.  While unlikely, if either PepsiCo or Coca Cola develop a soda making device, then that could spell trouble for Sodastream International Ltd (NASDAQ:SODA).  Further, it’s possible an upstart company could develop a better device and enter that the market.

Conclusion

While SodaStream is still a new company trying to figure its way into the global soda industry, it has potential and is showing some signs of success.  Its already branching out in emerging markets and is likely to gain a presence in countries where it doesn’t yet exist. SodaStream’s products are doing well in the American market and where it’s clearly picking up steam.

The article Where Does SodaStream Stand? originally appeared on Fool.com and is written by Yasir Idrees.

Yasir Idrees has no position in any stocks mentioned. The Motley Fool recommends Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream. Yasir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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