The company is building its brand awareness by positioning it as a preferred choice of upscale departmental stores like Macy’s, Harrods, etc. It is creating a stylish and innovative product range through partnership with leading designers like Yves Behar. And it has already produced an avalanche of flavors.
It also has some smart tricks up its sleeve, like the counter on its website that is eternally counting the number of wasteful bottles being used across the world.
Powered by SodaStream
SodaStream has struck two deals in a row with Samsung and Whirlpool Corporation (NYSE:WHR). The first one involves an inbuilt carbonation system in premium Samsung RF31FMESBSR four-door refrigerators. The other one involves jointly developing soda machines for Whirlpool Corporation (NYSE:WHR)’s KitchenAid brand. In both cases “powered by Sodastream International Ltd (NASDAQ:SODA)” will be printed on the packaging.
Samsung and Whirlpool are huge names in the home appliance world, and a tie-up with them provides SodaStream with immediate access to millions of households across the world. This would mean promotions on a scale that would have been impossible otherwise.
The deals would help the cause of the two partner companies as well. Samsung has priced this refrigerator at $3,900. A similar French-door refrigerator without the SodaStream novelty is priced at $3,000.
Whirlpool would also see some incremental gains from this new offering. Whirlpool is a mature company and revenue gains are difficult to come by. In fact, in the first quarter the company had reported a 2.3% decline in revenue to $4.2 billion. So, any extra sales would be welcome.
KitchenAid has so far been content with mostly toasters, mixers, juicers, and other conventional products. The soda-maker could be a good novelty in its product line.
Sodastream International Ltd (NASDAQ:SODA) has just started growing and should do so by leaps and bounds over the coming years. Its excellent management, great strategies, and most of all good products make it a compelling investment option. If any of the soda giants acquire it, it’s going to be a big opportunity for investors, and if they don’t investors have nothing to lose, only to gain.
The article Beat the Market With This Stock originally appeared on Fool.com and is written by Eshna De.
Eshna De has no position in any stocks mentioned. The Motley Fool recommends Green Mountain Coffee Roasters and SodaStream. The Motley Fool owns shares of SodaStream. Eshna 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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