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.
PepsiCo CEO Indra-Nooyi
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.
© FoodBev Media Ltd 2020