I have been using Sodastream for 3 years. My wife won't touch the machine or even try the flavors.
I have a son who laughs and smirks at it. He is 39, brilliant and a true yuppy. He is at Starbucks most days.
It's all about credibility guys and nothing else.
If KO or PEP puts their syrup in these machines you have instant credibility.
If Starbucks has these machines and syrups on their shelves, ditto.
Seth, you are confused. Selling machines to quirky people may get you to a billion or two in sales over some extended period of time, but add Coke or Pepsi and you're at 10 billion tomorrow.
Martinitony - You are the gift that keeps on giving, if making weak arguments based on faulty logic were a gift. I have neither the time nor inclination to give you desperately needed lessons in logic, but I will recommend to you and all an excellent text on the subject: Irving Copi's "Introduction to Logic." You would greatly benefit from the section on the fallacies of argumentation. You'd undestand why your arguments are so maddeningly unconvincing.
Seth is spot on when he points out that none of the companies we've been discussing (SODA, SBUX, KO, PEP, DPS) needs any of the others. Each of their businesses will go on into the future (SODA and SBUX growing, KO, PEP, and DPS contracting) regardless of whether any of them partners with another . There are, however, two things that the CEO of each company must do every quarter. Each CEO must answer the following questions:
- What have you done for me lately? (paraphrasing from Eddie Murphy's "Raw" to describe a quarterly report)
- What are you going to do for me in the future (describing future guidance).
No matter how good last quarter was, or how many good quarters they have delivered, each CEO is expected to deliver positive revenue and earnings data that, at a minimum, meets investors' expectations. If a CEO fails to meet the investors unrelenting demand for sales and profits for just a few quarters, he/she will be canned without pity or mercy. Treading water (flat sales, stagnant earnings) is not enough for investors; to keep their jobs, the CEOs must deliver positive results. It would be fair to use the name of a quirky punk rock band to describe the investors: "Me First and the Gimme gimmes."
It is for this reason that CEOs are constantly looking for opportunities to cut costs, increase sales, raise margins, and increase earnings. It is this need for revenues and earnings that is driving KO, PEP, DPS, and SBUX into the business that SODA dominates. GLTA.
Sentiment: Strong Buy
That's funny Martin. I haven't been to a Starbucks in years. I laugh at the people who go into Starbucks and spend $4 on a glorified cup of coffee. I have a Sodastream and my wife and I use it multiple times a day. Love the Ocean Spray and Crystal Light flavors. Actually ran out of CO2 the other night and ran to the store for a refill. Rarely go out at night for anything but had to have that CO2.
But what exactly do you suggest we do to get a decent coffee beverage anywhere anytime we want it? I feel like you are suggesting we should either skip it (which doesn't make sense because it is up to us to decide if we want it), or you think we should get some inferior product, like from a gas station or something… not sure.
Stop. stop, stop! Martin, this is a TOTAL non sequitur. Why don't you just go short on SODA and long on GMCR, KO, and PEP. If someone wants a COKE, there is a cheap environmentally friendly way to get that--fast. It's called an aluminum can!
Sentiment: Strong Buy