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SodaStream International Ltd. (SODA) Message Board

  • beauty90210211 beauty90210211 Oct 15, 2013 8:27 AM Flag

    hey coca cola

    you want to revitalize your weak sales. How about putting a Coke (Sodastream) machine in the millions of homes it's already in and make you own fresh Coke products on the shelves of 60,00 new retailers (like Sodastream has)?- and shorts are saying SODA doesn't have massive growth potential???? KO or PEP will be buying this within the next six months. Let the bidding war begin.

    Sentiment: Buy

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    • To think KO has no interest in a disruptive model in it's earlier stages is silly. Who knows whether they buy them or not, but as SODA continues gain momentum, interest will certainly build. I'm not buying the argument of this working against bottling interests. KO would certainly rather have a Coke Machine in every house than sell a liter here and there...think about the additonal engagement you have with a customer that has a machine to produce your product in their house. Think of the additional margins shipping syrup to someones home rather than buying at a market, think of the ability to have a huge database of your customers that you can send new products too. Think about the disadvantage your competitor has by not having a machine in their house.

      Sentiment: Buy

      • 1 Reply to beauty90210211
      • Beauty - We seemed to have switch from talking about apples to discussing oranges. My point that KO would not be interested in buying SODA in the near- to medium-term was in response to your argument that it would be a no-brainer for KO to buy SODA at its current valuation. You seem to be stepping away from your "no-brainer" argument and are now arguing that the suggestion that KO has no interest in the disruptiveness of SODA 's business model is silly.

        Neither I nor anyone else has suggested that KO would have no interest if (only death and taxes are certain) SODA continues to gain momentum. Everyone would agree that if KO was losing market share to another company it would be keenly interested; to suggest the opposite would indeed be silly. But KO's being interested in its market share does not make the purchase SODA at it's current valuation a no-brainer.

        Also, to not buy the argument that the SODA home-carbonation system represents a potential threat to KO is to ignore that the company is in the business of selling sugar-water and bottles; its revenue and profits are derived from both products. If KO were to sell just syrup and not bottles, it would be a smaller and less profitable company. How do I know this? Because KO would have been selling just syrup decades ago if it could be as big and profitable as it is today. As for margins, KO (like every company) would prefer greater revenue on low margins than smaller reveune on high margins .

        If KO were to sell its syrup in the supermarket right next to the bottles of Coke, the bottlers would see their business take a huge hit. Some people would buy the syrup because it's green, others would buy it becuase it's more convenient, but whatever the reason, every bottle of syrup would represent a dozen less bottles being bought. KO would be selling less syrup to its bottlers, and KO and the bottlers would be selling fewer bottles. KO and PEP wont buy SODA anytime soon. My two cents. GLTA.

        Sentiment: Strong Buy

    • The top 5 KO executives probably could buy Soda with their salaries. Kidding, but I was shocked when I heard how much these 5 guys make. And how challenging could it be. It's not like a technology company where the technology changes every year. Same formula for over 100 years. Yeah I know they have new flavors but how challenging can it be. I can see it now the 5 KO executives are on the golf course and say we need to get our share of the business up lets go buy Soda.

      Sentiment: Strong Buy

 
SODA
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