PepsiCo Snaps Up SodaStream

PepsiCo is buying Israel-based SodaStream for $3.2 billion, according to reports from CNBC out this morning. That values the beverage startup at $144 a share — a sum Pepsi will be paying in cash for SodaStream’s outstanding stock, a 32 percent premium to its 30-day volume weighted average price.

The acquisition gives Pepsi access into consumers’ buying behaviors that extends beyond stores. As of 2025, about 70 percent of Americans are forecast to be buying groceries online, according to the Food Marketing Institute and Nielsen. And store brands — sensitive to the changing nature of consumers’ buying habits — have begun to push back on CPG brands on price while offering less shelf space in favor of their own private label brands.

“We get to play in a business — home beverages — where we don’t play,” PepsiCo CFO Hugh Johnston told CNBC.

PepsiCo’s beverage business has struggled in North America of late, as consumers move away from traditional sodas and their high sugar and calorie count. The acquisition also seemingly addresses the challenge that buying new drink brands risks cannibalizing its legacy beverages.

It’s a big move for exiting CEO Indra Nooyi, who earlier this month announced her intention to step down after a 12-year tenure as CEO.

“PepsiCo is finding new ways to reach consumers beyond the bottle,” said PepsiCo President Ramon Laguarta, who will succeed Nooyi as CEO on October 3.

SodaStream currently distributes in 80,000 individual retail stores across 45 countries. Its biggest markets are Germany, France, Canada and the U.S. Signing on with Pepsi will greatly expand its reach.

The firm has recently been on a powerful earnings run — having tripled its forecast for the rest of the year and sending its stock price up 26 percent. Sales of its machines rose 22 percent in the quarter, to more than 1 million, while sales of gas refill units grew 17 percent, to a record 9.7 million.

Prior to the deal’s announcement, SodaStream shares had gained nearly 85 percent this year.