Seth, how long do you believe it would take for SODA to get Pepsi or Coke products
to market if they really set their mind to it? I'm wondering both syrup and a machine that has design and logos for either company. I ask this because I figure that whoever gets there first has a tremendous advantage over the other. I would think SODA could get this done in less than 90 days if they had to and I wonder why Dr. Pepper or Pepsi doesn't see that beating Coke by a year really matters. Perhaps I'm naive and the marketing plan for this type of distribution doesn't work the way I see it.
To slap a logo on an existing machine would take as little as a full production day, knocking out thousands of units on the assembly line. Your mistake is assuming several things. First, your assuming the hardware manufactures want this logo on their machine. Bevyz is not putting a Pepsi logo on the machine, its a Cuisinart machine. People aren't flocking to KO or PEP, they are fleeing KO and PEP on the CSDs. Your assuming KO is coming to the market the same way your assuming that the Bevyz machine is coming to the market with PEP which it is not, not at all, doesn't even have the ability to which I can't get into here. But for sake of clarity and simplicity, the Bevyz machine, which will launch shortly on-line and in the fall at WSM, will not be able to carbonate PEP products or colas at all. Fact, and you will see my tone and verbiage differentiate in other forums because of relationships developing between our firm and the parties in question, the Bevyz machine, doesn't function..."properly". I had to point this out to Jon Anderson form JPM and Jim Chartier from Moness at the Bevyz/Cuisinart booth. Let's just say, Bevyz was trying to pull a "slight of hand" using a thermoelectric cooling system. Look that up and you will better understand. My report will outline it more completely of course, just can't do that here.
I don't think I'm missing the point.
1. Colas and sugar are not nicotine and tar. Even if they were, the world is a big place.
2. If KO had a technology that could do what SODA does, SODA would be done for now as a growth stock and would have a slim chance of survival in the home carbonation business. I don't need to hear about the CO2 distribution that SODA has built because I know that at whatever the cost KO or PEP or most any major player could put down the billions, if required, and get that done overnight, yes, I said overnight.
You guys are yanking at yourselves and and getting pretty egotistical about what SODA has.
I honestly hope that no one can duplicate or better this technology, but I doubt that is likely. They will do it, if the numbers make sense and they can't strike a deal with SODA.
That is the risk SODA takes and I am long SODA, but I really think they should work extremely hard to get a deal that makes "decent" sense for their shareholders.
The longer they go, the greater the risk becomes. IMO, that's the way it is.
Totally missing the dynamic now Martin IMO. You're entitled to focusing on KO, PEP etc. Don't you see that SODA doesn't care? They have a "made hand". The Big Boys are stumbling over each other and the hysterical thing is they don't NEED to do so. Think CIGARETTES:)