Why the SodaStream International Ltd (SODA)-Whirlpool Corporation (WHR) Partnership Is Huge… for SodaStream

Page 1 of 2

SodaStream International Ltd (NASDAQ:SODA) sure doesn’t seem to have any problems making new friends of late.

Back in February, for instance, the at-home carbonation specialist announced a deal with Samsung integrate its products into some of the Korean conglomerate’s high-end refrigerators.

Then, in March, Sodastream International Ltd (NASDAQ:SODA) followed up by unveiling the latest expansions to its flavor repertoire through deals with both Ocean Spray Cranberries and healthy energy-drink maker eBoost.

Sodastream International Ltd (NASDAQ:SODA)While those deals were all well and good, you have to admit Sodastream International Ltd (NASDAQ:SODA)-enabled refrigerator sales weren’t exactly the fastest way to accelerate the company’s plans for ultimately penetrating at least 10% of the massive United States market. In addition, though the new flavors will serve to make SodaStream’s product that much more appealing to the masses, they weren’t exactly a game-changing development.

The biggest deal yet
And that, my Foolish friends, is where kitchen appliance king Whirlpool Corporation (NYSE:WHR) comes in.

On Monday, Sodastream International Ltd (NASDAQ:SODA) and Whirlpool announced a collaborative deal to introduce a KitchenAid-branded home carbonation system to consumers during the fourth quarter this year.

Of course, management from both companies extolled the virtues of the partnership, with Whirlpool Corporation (NYSE:WHR) CEO David Elliott suggesting consumers around the world will now be able to enjoy Sodastream International Ltd (NASDAQ:SODA)’s “best-in-class technology” combined with KitchenAid’s “stylish design signature.”

However, the comments from Sodastream International Ltd (NASDAQ:SODA) CEO Daniel Birnbaum highlighted just how much his company stands to gain from the deal:

Our unique platform will enable KitchenAid to provide its large and loyal consumer base with the many benefits of home carbonation. We look forward to leveraging the combined strengths of our two brands to advance the category and reach an even broader global audience. [Emphasis added.]

Fellow Fool Rick Munarriz already chimed in to point out the fact this looks an awful lot like the partnership Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) inked a few years back to introduce Cuisinart-branded single-serve coffee brewers to the world.

More specifically, Green Mountain was not only able to ride a fresh wave of consumer acceptance on the well-established Cuisinart name, but also enjoyed increased K-Cup sales — the blades to its brewer-razors, if you will — since then as a direct result. Sure enough, since the Green Mountain partnership was launched back in May, 2010, it has helped Green Mountain investors en route to a more than 240% gain.

Similarly, this weeks’ SodaStream-Whirlpool Corporation (NYSE:WHR) announcement should serve to push even more potential Sodastream International Ltd (NASDAQ:SODA) customers off the fence and into the paying-consumer field. Better yet, SodaStream could care less whether people use a KitchenAid or SodaStream-branded carbonation machine, so long as they continue to boost its bread-and-butter through recurring syrup and CO2 refill sales.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!