SodaStream (SODA) Gets 'Pop' from Deutsche, Lack of Competition
Tweet
Share
E-mail
Get Alerts SODA Hot Sheet
Join SI Premium – FREE
SodaStream (Nasdaq: SODA) is seeing some upside today stemming from a positive Deutsche Bank note.
And Deutsche may have it spot on.
There's no question about two things for SodaStream: 1) it makes liquids infused with carbon dioxide, and 2) this is not a new process.
However, despite competition, SodaStream appears to be much cheaper than competitors over the long run.
For example, Deutsche Bank noted competition from Twist 'N Sparkle (TS).
Besides being an awesome name for a Saturday morning crime-fighting cartoon duo, the product initially appears to be a better buy than SodaStream. The initial setup, with three chargers capable of one-liter per, a container, and bubbling wand is about $50. Comparably, SodaStream's Genesis kit, with a bottle and 14.5-ounce, refillable CO2 container, is about $100.
Seems like a no-brainer...until you get down to the details.
Each canister for TS is enough to fill about one liter of soda, while SodaStreams canister can fill about 60 liters. A 10-pack of CO2 canisters sells for about $10 less shipping on Amazon, while an exchange for a comparable, refillable 14.5-ounce SodaStream 'carbonator' is about $45.
So, although competition in the soda world is fierce, and not a new technology, SodaStream has manged to make itself more valuable by cutting costs to consumers, being environmentally friendly, and offering a wide variety of choices.
SodaStream shares are up 6.4 percent on the session.
And Deutsche may have it spot on.
There's no question about two things for SodaStream: 1) it makes liquids infused with carbon dioxide, and 2) this is not a new process.
However, despite competition, SodaStream appears to be much cheaper than competitors over the long run.
For example, Deutsche Bank noted competition from Twist 'N Sparkle (TS).
Besides being an awesome name for a Saturday morning crime-fighting cartoon duo, the product initially appears to be a better buy than SodaStream. The initial setup, with three chargers capable of one-liter per, a container, and bubbling wand is about $50. Comparably, SodaStream's Genesis kit, with a bottle and 14.5-ounce, refillable CO2 container, is about $100.
Seems like a no-brainer...until you get down to the details.
Each canister for TS is enough to fill about one liter of soda, while SodaStreams canister can fill about 60 liters. A 10-pack of CO2 canisters sells for about $10 less shipping on Amazon, while an exchange for a comparable, refillable 14.5-ounce SodaStream 'carbonator' is about $45.
So, although competition in the soda world is fierce, and not a new technology, SodaStream has manged to make itself more valuable by cutting costs to consumers, being environmentally friendly, and offering a wide variety of choices.
SodaStream shares are up 6.4 percent on the session.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- AdaptHealth to sell diabetes unit to Cardinal Health for $235M
- Jersey Mike's launches IPO roadshow, targets NYSE listing as JMKE
- ASML Holding NV (ASML:NA) (ASML) PT Raised to EUR2,150 at Deutsche Bank
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Deutsche BankSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
