Thursday 31 October 2013

Will SodaStream Earnings Flatten Coke and Pepsi?


SodaStream (NASDAQ: SODA  ) will release its quarterly report on Wednesday, and investors are preparing for the possibility of something they haven't seen much of lately: falling earnings.

Yet in the long run, SodaStream earnings appear poised to keep soaring, raising questions about whether the home-carbonation system maker will eventually start cannibalizing the businesses of soda giants Coca-Cola (NYSE: KO  ) and PepsiCo (NYSE: PEP  ) .

SodaStream jumped onto a kitchen appliance trend, but it has a much different marketing angle from those that home coffee brewers use. SodaStream promises not only cost-effective soda but also healthier offerings that cut down on environmental waste. Read more about KO.

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