SodaStream CEO: Coke And Pepsi's Business Model Is 'Insane'

Business Insider

SodaStream CEO Daniel Birnbaum has an incentive to disparage his rivals — but nontheless he made a strong argument as to why Coke and Pepsi are "antiquated" and "insane."

Some unusual candor in an interview with WSJ's Simon Zekaria:

"Coca-Cola Co. and PepsiCo will have to face the reality that their business model cannot be preserved forever. The world is changing and we're going to call it out," says the CEO of SodaStream. 

"If the beverage industry had to create itself now from scratch, it wouldn't do it the way it is. You don't need factories, trucks, bottles and cans," he says. "Transportation for carbonated drinks in the world utilizes 100 million barrels of oil every year. That is 20 times the BP disaster that hit the Gulf of Mexico."

"I think it is criminal that the industry, led by two big companies, will do anything to protect their antiquated business model. They are generating 35 million bottles and cans every single day in the U.K. alone. World-wide it is one billion bottles and cans, most of which just go to trash, landfill, the oceans or parks. It's insane," Mr. Birnbaum added.

Now that he mentions it, that does seem wildly inefficient.

Of course, inefficient companies can last a long time thanks to all of that infrastructure in place. And if the industry is disrupted by a new company, there's no guarantee that company will be SodaStream (which is one of the most shorted stocks on the market).

Don't miss: The Complete HIstory Of Sodastream >



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