Longbow must have read my message responding to GMCR activity where i said one of the gorillas could stop GMCR in its tracks by acquiring Soda. Who wants to take on a gorilla except another gorilla and then control the growth.
Or not at all. I didn't respond to your post the other day because it doesn't make any sense. Please think about what you are rationalizing Rlolsen. Acquire SODA and do what with it? What could PEP or KO possibly do with a company that offers to cannibalize their existing business. This is not a room for everyone scenario long term. There will be a winner and a loser as the two formats are completely different and offer the consumer a choice; do it yourself or buy the bottled product. So what, you buy SODA and then kill it off? Best of luck with that press and even more luck trying to push your socially and eco-friendly campaigns. No chance. You can run one division that serves to render the other division useless over time. Partner? Yea, partner at least affords you time, a slowing of sales deceleration as you adjust your product structure and business as the consumer adjusts in similar fashion over time.
Buyers won't be the beverage companies, they will likely be gas and appliance related and/or international players. Think Linde Corp, Strauss et cetera. Just some feedback my friend.
Longbow starts SodaStream with a Buy, views as buyout target
Longbow initiated coverage on SodaSteam with a Buy rating and $79 price target based on numerous growth opportunities. The firm sees multiple catalysts for revenue upside in the coming quarters that include channel expansion, domestic product introductions, future partnerships with major soda makers, and views as a potential takeover target.