I am long on SODA and still believe the upside in SODA is WAY higher than the potential downside. However, as an active investor, I am interested in seeing others perception of the development that GMCR is planning a soda maker. GMCR is worth about 13 times that of Sodastream right now and ultimately has the free cash to create a comparable and even better model than SODA.
Although the pipeline is non exsistent and their are no exclusive agreements as of yet.......GMCR could pose a real threat to that of SODA in the future. Does anyone see this as a viable threat? Or is this GMCR getting into a market too late as many companies tried to do to Amazon, netflix, microsoft, etc.?
You are going to have to do some digging but there was a lot of discussion about this issue a month or so ago. I think Seth might have also written a research report breaking down the topic, though I might be mistaken.
GMCR soda maker = vaporware. Sodastream is already integrated into appliances from other manufacturers. The CO2 distribution network is entrenched. Now suppose they do disposable CO2 or generate CO2 from a chemical reaction.....all more expensive and challenging from a regulatory and safety standpoint. How do they profit?
When the DOT shut down mail order CO2 they put the nail in the coffin of potential competitors looking to set up their own network.