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Handout photo of the SodaStream Source, which infuses tap water with CO2 and syrup to produce soft drinks at home without bottle waste.
Handout photo of the SodaStream Source, which infuses tap water with CO2 and syrup to produce soft drinks at home without bottle waste.
(Handout/SodaStream)

FINANCIAL TIMES

SodaStream could be all fizz

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Pepsi isn’t going to buy SodaStream – this week. Yet reports that it might pushed the home-soda machine company’s shares up 5 per cent on Thursday, even as Pepsi issued categorical denials. Some investors, it appears, had not ever noticed SodaStream’s shares (which have doubled since November), its sales (up more than 50 per cent in 2012), or its gross margins (above 50 per cent) until the chatter started. Nor might they have known more than half of SodaStream’s revenue comes from canisters and syrups – and everyone loves the razors/blades model.