SodaStream's run at Coke, Pepsi losing steam
NEW YORK - SodaStream, saying it isn't winning over enough new customers in the United States, reported preliminary sales fell short of Wall Street expectations.
The company's stock tumbled 22 percent to close at $21.52 Tuesday. Over the past year, its stock has lost more than half its value.
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Chief executive Daniel Birnbaum said the Israeli company's US business underperformed in the third quarter because of lower-than-expected demand for its soda makers and flavors. While it successfully established a base of repeat users in the United States, Birnbaum said, SodaStream isn't attracting new users at the rate the company would like.
SodaStream International said third quarter revenue is expected to be about $125 million. That's down from $144.6 million a year ago and below the $153.6 million analysts expected, according to FactSet.
SodaStream has touted its machines as a cheaper, more environmentally friendly alternative to buying bottled or canned drinks such as Coke and Pepsi. It has been trying to make a splash in the United States and advertised in the last two Super Bowls, with the latest commercial featuring actress Scarlett Johansson. The machines are in 1 percent of US homes, the company has said, compared to as many as 25 percent in Sweden.
SodaStream will soon face formidable competition. Keurig Green Mountain, known for its single-serve coffee makers, is expected to soon introduce a machine for cold drinks.
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