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SodaStream International Ltd. (Hebrew: סודהסטרים) is an Israel-based manufacturing company best known as the maker of the consumer home carbonation product of the same name.[2][3] The company's soda machines, in the style of soda siphons, add carbon dioxide to water from a pressurized cylinder to create carbonated water for drinking. It also sells more than 100 types of concentrated syrups and flavourings that are used in the process of making carbonated drinks.[4][5][6] In 2018, SodaStream distributed its products to 80,000 individual retail stores across 45 countries.[7]

Key Information

The company was founded in 1903 in England. After it merged with Soda-Club in 1998, it was relaunched with an emphasis on healthier drinks, and went public on the Nasdaq stock exchange in November 2010.[8] SodaStream is headquartered in Kfar Saba, Israel,[9] and has 13 production plants. In August 2018, the company was acquired by PepsiCo for US$3.2 billion.[10][11][12] PepsiCo wanted to reduce its reliance on sugary drinks;[13] SodaStream has since launched a variety of PepsiCo flavours into their range.

Until 2015, the company's principal manufacturing facility was located in Mishor Adumim, an industrial park within the Israeli settlement of Ma'ale Adumim in the West Bank, which generated controversy and a boycott campaign.[14][15][16] In October 2015, while under growing pressure from activists of the BDS movement, SodaStream closed its facility in Mishor Adumim and relocated it to the town of Lehavim in Israel.[17]

Product

[edit]
Sodastream machine and bottle

The SodaStream Sparkling Water Maker is a device that forces carbon dioxide (CO2) gas (stored under pressure in a cylinder) into water, making it sparkling (fizzy).[18] The product includes a machine, a carbon dioxide cylinder, and one or more reusable beverage bottles.[18] The bottle, filled with water, is inserted into the machine, and with a button push or two, compressed CO2 from the cylinder is injected, creating carbonated water.[19] Varieties of concentrated syrups are available, to create regular or diet soft drinks by adding a small amount of concentrate to the bottle after carbonation.[20][21]

Different flavours are created by adding fruit-flavoured concentrates. During its heyday, several famous brands were available in SodaStream concentrate form including Tizer, Fanta, Sunkist and Irn-Bru.[22] SodaStream and Kraft Foods entered into a partnership in January 2012 involving the use of the Crystal Light and Country Time brand flavours with the SodaStream home carbonation system. That July, the two companies expanded their partnership to include the Kool-Aid flavour line.[23] In 2013, SodaStream partnered with Ocean Spray to market three Ocean Spray flavours for use with the SodaStream home soda maker.[24]

In February 2013, SodaStream and Samsung announced that Samsung refrigerators with built-in SodaStream sparkling water dispensers would be available in the United States beginning in April.[25][26]

Excluding the purchase price of the machine, typical cost to the end user (2015, United States dollars) is 25 cents per litre of carbonated water generated[28] plus another 50 cents per litre for the soda syrup.[30]

History

[edit]

The forerunner of the machine, the "apparatus for aerating liquids",[31] was created in 1903 by Guy Hugh Gilbey of the London gin distillers W & A Gilbey Ltd.[22] and was sold to the upper classes (including the royal household).[5] Flavoured concentrates such as cherry ciderette and sarsaparilla were introduced in the 1920s, along with commercial carbonation machines,[3][5] and the first machine for home carbonation of drinks was produced in 1955.[22][contradictory]

SodaStream machines were popular during the 1970s and 1980s in the UK, and are associated with nostalgia for that period.[5][6] Their slogan, "Get busy with the fizzy", started as an advertising jingle in 1979 and proved so popular that they added it to their logo. The slogan was dropped in 1996 after 17 years.[32]

Subsidiary of Cadbury Schweppes; purchase by Soda-Club

[edit]

In 1985, after various changes of ownership, SodaStream became a wholly owned subsidiary of Cadbury Schweppes, although it operated as an autonomous business within the group.[22]

In 1998, SodaStream was bought by Soda-Club, an Israeli company founded in 1991 by Peter Wiseburgh, who from 1978 to 1991 had been Israel's exclusive distributor for SodaStream, creating the world's largest home carbonation systems supplier.[3][33] In 2003, Soda-Club closed the SodaStream factory in Peterborough, moving the company's gas cylinder refilling and refurbishment department to Germany.[34] Under the ownership of Soda-Club, the brand has been relaunched in many markets, with new machines and new flavours available in 41 countries.[35] In 2012, SodaStream teamed with Yves Béhar to introduce SodaStream Source, a line of soda machines designed with a special emphasis on sustainability.[36][37] Béhar's design earned SodaStream a Good Housekeeping Institute seal of approval in 2013.[38]

2010 NASDAQ IPO

[edit]

SodaStream International Ltd. went public on the NASDAQ stock exchange in November 2010.[39] The stock offering was jointly led by J.P. Morgan Securities and Deutsche Bank Securities.[40]

At the time, the IPO was the eighth largest for an Israeli company on the NASDAQ[41] and during the year 2010 one of the top-performing IPOs generally.[42][43] To celebrate SodaStream's listing on the NASDAQ, CEO Daniel Birnbaum was invited to ring the exchange's closing bell on 3 November 2010.[44] By August 2011, SodaStream's market capitalisation had risen from $367 million to $1.46 billion.[45][46]

During 2012, earnings per share grew by 57% and the stock experienced aggressive growth. In June 2013, Israeli financial newspaper Calcalist incorrectly predicted a $2 billion Pepsi takeover of SodaStream, sending SODA stock higher before the rumours were promptly debunked by PepsiCo.[47]

Analysts had expected another 27% growth in 2013 with earnings projected to grow 30% over the next 5 years.[48] 2013's actual net earnings were down relative to 2012 despite an increase in sales; in 2014, the company's stock dropped to its lowest value since 2012. Barclays PLC analyst David Kaplan cited US Secretary of State John Kerry's warnings about the economic effects of boycotts of Israeli companies in the occupied territories and the company's failure to clarify the reasons for missed earning targets as causes for the drop.[49]

In October 2014, SodaStream announced its revenue for 2014 was expected to decline to $562.7 million, a 9% decrease from the previous year,[50] while a report by Zacks Equity Research stated that net income for 2014 is expected to be 42% lower than in 2013. Zacks Equity Research cited declining sales in the United States, where an increasing number of consumers are choosing "more natural, less caloric and water based beverages" as opposed to traditional carbonated soft drinks.[51]

Marketing & Sales

[edit]

Some 20% of households in Sweden owned SodaStream machines as of 2010.[52] In January 2011, the company marked the sale of its millionth soda maker in the country.[53] Europe accounts for 45% of SodaStream's sales.[54]

By May 2012, SodaStream was being sold in over 2,900 Walmart locations in the United States. SodaStream's U.S. sales grew from US$4.4 million in 2007 to $40 million in 2011.[55] Despite record sales, profit margins are declining and in 2013 fell short of targets and investor expectations.[56] Sodastream also sold its product in some Bed Bath & Beyond stores.[57]

Since its acquisition in 2018, SodaStream's sales and reporting have been folded into PepsiCo's corporate reporting.[58]

In its marketing, the company focuses on environmental attractiveness of using tap water and returnable gas cylinders.[4] SodaStream has been involved in environmental projects, including waste reduction, beach cleanup and reforestation.[59]

Advertising campaigns

[edit]

In 2010, SodaStream launched an international campaign targeting the bottle and can waste associated with pre-made drinks. The campaign involves the display of 9-cubic-metre cages in various countries, each containing 10,657 empty bottles and cans. When a cage full of empties went on display in Johannesburg, South Africa in 2012, Coca-Cola demanded that SodaStream remove its products from the cages and threatened to sue SodaStream. SodaStream responded by dismissing the threats and announcing that it would display the cage outside Coca-Cola's headquarters in Atlanta.[60][61][62][63]

A 30-second television commercial promoting sustainability,[64] showing soda bottles exploding each time a person makes a drink using a SodaStream machine, was banned in the United Kingdom in 2012.[65][66] Clearcast, the organization that approves TV advertising in the UK, explained that they "thought it was a denigration of the bottled drinks market".[67] The same ad, crafted by Alex Bogusky, ran in the United States, Sweden, Australia, and other countries. An appeal by SodaStream to reverse Clearcast's decision to censor the commercial was rejected.[68][69][70] A similar advertisement, which featured a pair of Coca-Cola and Pepsi deliverymen reacting to the exploding bottles, was expected to air during Super Bowl XLVII in February 2013, but was rejected by CBS for its direct references to Coke and Pepsi. The previous SodaStream ad was shown in its place.[71] SodaStream CEO said "The banned ad was a win because of the quality as well as the quantity of the exposure we received".[72]

The company's 2020 advertising campaign featured Snoop Dogg in the United States and Priyanka, the first season winner of Canada's Drag Race, in Canada.[73]

Tap water initiative

[edit]

In 2011, SodaStream partnered with the Israel Union for Environmental Defense to launch an initiative promoting waste reduction and an improvement in the quality of tap water.[74] Also in 2011, SodaStream launched a campaign with Erin O'Connor to raise awareness to the effects of plastic bottle waste on the environment.[75] As part of the company's support for Climate Week, in 2012 SodaStream donated £1,000 (equivalent to £1256 in 2021) to a school in Crediton, Devon in the United Kingdom to fund an educational beach cleaning initiative.[76][77] SodaStream partnered with Trees for the Future in 2012 to launch the Replant Our Planet initiative: for each home beverage carbonation system sold from its Rethink Your Soda product line, SodaStream committed to planting hundreds of thousands of trees in Brazil.[78][79] SodaStream Italy and the Municipality of Venice partnered in 2012 to organize Join the Stream: fight the bottle, a cleanup initiative with its starting point at the Lido di Venezia.[80] Actress Rosario Dawson launched the first annual Unbottle the World Day in New York City in July 2012. The campaign, initiated by SodaStream to raise awareness to the impact of cans and plastic bottles on the environment, calls on the United Nations to designate one day of the year a "Bottle Free Day".[81]

Influencer marketing

[edit]

Since 2016, SodaStream has worked with influencer marketing in social media.[82]

Production facilities

[edit]

SodaStream has 13 production facilities worldwide. From 2016, SodaStream's principal manufacturing facility is in Idan HaNegev Industrial Park north of Beersheba, Israel. The plant provides employment for around 1,400 workers, many of them Negev Bedouins.[83] The cornerstone for the plant was laid in 2011, it opened in 2015.[14][84][85] An additional plant, which began operating in 2011 in Ashkelon, produces SodaStream syrups and flavours. Another plant operated in the Alon Tavor industrial zone near the Israeli city of Afula, between 2011 and 2015, but was closed once the Idan HaNegev facility was opened.

In Europe, the company employs 250 people, in two main sites; at SodaStream's European commercial and logistics center, which is located in Rijen, Netherlands and at a manufacturing facility in Limburg an der Lahn, Germany. SodaStream's US headquarters is at Mount Laurel, New Jersey.[86]

Boycott campaign and factory relocation

[edit]
Label on SodaStream packaging

In the early 2010s, as part of the Boycott, Divestment and Sanctions (BDS) activist campaign launched in 2005 to pressure Israel to end the occupation of the West Bank and Gaza,[87] SodaStream was criticized for operating its primary manufacturing plant in the Mishor Adumim industrial zone in the West Bank.[88][89][90][91]

The Court of Justice of the European Union ruled in 2010 that SodaStream was not entitled to claim a "Made in Israel" exemption from EU customs payments for products manufactured in the West Bank because Israeli settlements in the West Bank are outside the territorial scope of the EC–Israel Agreement.[92][93][94][95]

In January 2014, Oxfam accepted the resignation of Scarlett Johansson, an American actress, as ambassador for that organisation, a role she had held for eight years, after she became a brand ambassador for SodaStream. Oxfam has stated that "businesses, such as SodaStream, that operate in settlements further the ongoing poverty and denial of rights of the Palestinian communities that we work to support"[96] and opposes all trade with the settlements citing their illegality under international law.[97] Johansson reportedly resigned because of "a fundamental difference of opinion in regards to the boycott, divestment and sanctions movement".[96] In her statement she described SodaStream as "not only committed to the environment but to building a bridge to peace between Israel and Palestine, supporting neighbours working alongside each other, receiving equal pay, equal benefits and equal rights".[96] SodaStream CEO Daniel Birnbaum also accused Oxfam of supporting the BDS movement against Israel as a whole, a charge Oxfam denied, saying that "this is about trade from the settlements" and specific to settlements outside Israel's pre-1967 border.[98][99] which Oxfam states, due to their location, pose an obstacle to any future two-state solution.[99]

According to Birnbaum, the boycott had no impact on the growth rate of SodaStream, and he said, all SodaStream products sold in Norway, Sweden and Finland are manufactured in China.[99]

Human Rights Watch stated that "It is impossible to ignore the Israeli system of unlawful discrimination, land confiscation, natural resource theft, and forced displacement of Palestinians in the occupied West Bank, where SodaStream is located".[16][100][101] The United Church of Canada launched a campaign to boycott SodaStream products manufactured in the West Bank.[102]

Birnbaum said that the factories are apolitical and described the factory as "building bridges between us and the Palestinian population, and we provide our Palestinian employees with respectable employment opportunities and an appropriate salary and benefits".[103] SodaStream employed 500 West Bank Palestinians.[104] Addressing the location of SodaStream's Ma'ale Adumim plant, Birnbaum said the choice was made by company founder Peter Weissburgh, back in the 1990s, long before SodaStream was taken over by the current owners, who appointed Birnbaum in 2007.[105]

In July 2014, SodaStream fired 60 Palestinian workers after they filed a complaint about not receiving sufficient food to break Ramadan fasts during night shifts. The workers were not allowed to bring their own food into the plant due to Jewish dietary restrictions being enforced. According to SodaStream the workers had called for a wildcat strike.[106][107] SodaStream claimed that the workers were given a hearing and were not denied severance pay.[106][107]

SodaStream announced that its factory in Ma'ale Adumim would be closed by the end of 2015 in order to save $9 million in production costs. The plant's operations were transferred to a new factory in Lehavim, where it reportedly employed "a significant number of Bedouin Arabs".[108] The move laid off 500 Palestinian workers, although 74 Palestinian workers moved with SodaStream when it relocated.

See also

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References

[edit]

Further reading

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

SodaStream

View on Grokipedia
from Grokipedia

SodaStream is a of home systems that enable consumers to infuse plain water with to create sparkling water and add flavor syrups to produce soft drinks, reducing reliance on pre-bottled beverages. The company traces its origins to 1903, when it was established in the as a of gin distillers W&A Gilbey, initially marketing siphon-based soda makers before evolving into modern countertop machines. In 1998, Israeli firm Soda-Club acquired the brand, shifting its operational base to , where it is headquartered in . Under Israeli management, SodaStream expanded globally, emphasizing by promoting reusable CO2 cylinders and bottles that have reportedly prevented over five billion single-use bottles from entering landfills by 2022. The company achieved significant commercial success, culminating in its $3.2 billion acquisition by in January 2019, which integrated it into a portfolio focused on at-home beverage . However, SodaStream faced international controversy due to its factory in the settlement of Mishor Adumim, which employed around 500 Palestinian workers alongside Israelis; pressure from the (BDS) movement prompted the 2015 relocation to the desert, resulting in layoffs that disproportionately affected those Palestinian employees. This episode highlighted tensions between economic integration efforts in contested territories and activist campaigns aimed at Israeli-linked businesses, with the factory move failing to fully appease BDS advocates.

Product

Technology and Functionality


SodaStream sparkling water makers carbonate plain tap water by injecting carbon dioxide (CO2) gas from pressurized cylinders into sealed bottles. The process involves filling a proprietary, BPA-free plastic bottle with cold, still water, securing it within the machine's nozzle, and activating a button or lever that releases measured bursts of CO2 under high pressure to dissolve the gas into the liquid, creating effervescence; for models like the SodaStream Terra, pressing the carbonation button opens a valve that injects CO2 from the cylinder through the nozzle into the water bottle, and releasing the button closes the valve to stop the flow. Users control carbonation intensity by the number of activations, typically offering light, medium, or strong fizz levels, with colder water absorbing more CO2 for optimal results. The CO2 cylinders, central to the system's functionality, contain food-grade CO2 certified for human consumption and tested for contaminants in each batch. Each standard cylinder holds approximately 60 liters of equivalent and is constructed from high-grade and aluminum for durability, featuring a that releases excess pressure to prevent rupture. Cylinders are exchangeable at authorized retail locations identifiable via the SodaStream store locator, including participating retailers such as Target, Walmart, Best Buy, Kohl's, CVS, Staples, and Williams Sonoma depending on location; exchanges are also available online directly via SodaStream's website, where users pay only for the refill and return empty cylinders. No fixed list of official exchange partners is published, with the store locator providing location-specific options. Empty ones are refilled with verified CO2 to maintain safety standards, avoiding risks associated with third-party refills. Most models operate manually without electricity, relying on mechanical pressure release, though electric variants like the Power series automate the process with a single button press for consistent . The technology mimics commercial soda siphons but adapts it for use, emphasizing simplicity, with bottles designed to withstand the pressure without leaking or exploding when used correctly. features, including over-pressure relief and compatibility-specific nozzles, minimize hazards such as leaks or over-.

Models and Syrups

SodaStream produces a variety of sparkling makers designed for home use, utilizing CO2 cylinders to carbonate in reusable bottles. Models are divided into manual and electric variants, with compatibility for both quick-connect and screw-in CO2 cylinders across the lineup. Manual models rely on user-pumped for , while electric models offer automated buttons for consistent fizz levels.
ModelOperationKey FeaturesPrice (USD)
TerraManualClassic design for basic $89.99
ArtManualStylish mechanism$54.99
E-TerraElectricOne-touch customizable fizz$139.99
E-DuoElectricAutomatic fizzing; compatible with and BPA-free plastic bottles$179.99
EnsoElectricIntegrated design emphasizing form and function$149.99
SodaStream's syrups and drink mixes, typically in 440 ml bottles, flavor to create sodas with approximately 50% less than equivalent store-bought varieties. Offerings span classic sodas, diet options, zero- variants, and licensed partnerships, enabling replication of commercial beverages at home. Classic flavors include orange and . Diet selections encompass , caffeine-free , tonic, Dr. Pete, and Xtreme . Zero- options feature pink grapefruit, lemonade, strawberry-watermelon, and cranberry-raspberry. Partnership mixes, priced slightly higher, cover and wild cherry, multiple MTN DEW variants (original, zero , Code Red cherry, and zero Code Red), STARRY lemon-lime zero , and . These concentrates are added post-carbonation, with dosage instructions yielding multiple servings per bottle.

History

Founding and Early Expansion

SodaStream originated as a home carbonation system invented in 1903 by Guy Hugh Gilbey, a British entrepreneur associated with the W&A Gilbey distillery, in , . The initial device was designed to carbonate water using CO2 cylinders, targeting affluent households seeking an alternative to commercial sodas. Early models emphasized simplicity and domestic use, marking an early innovation in beverage preparation technology. By 1920, Gilbey's firm expanded the product line with flavored concentrates, introducing options such as cherry and sarsaparilla to enhance versatility and appeal. This development allowed users to create a variety of carbonated drinks at home, broadening the system's utility beyond plain soda water. Adoption remained limited to upper-class consumers through the mid-20th century, with more accessible home versions emerging in the , coinciding with post-war and rising interest in convenient kitchen appliances. The marked a pivotal phase of mass-market expansion, as SodaStream introduced affordable models that propelled its popularity, particularly in the . Sales surged during this decade, supported by effective marketing with slogans like "For fizz that puts the pop into parties," making it a staple in British households through the . Initial international outreach included distribution in and starting in the late , where it gained traction amid growing demand for home beverage solutions, though the brand's core market remained .

Corporate Acquisitions and Restructuring

In 2007, Fortissimo Capital Fund acquired a in Soda-Club Group, the parent entity of SodaStream, rescuing the company from near-bankruptcy through a private-equity reorganization that stabilized operations and paved the way for its (IPO) on the in 2010. Facing declining sales, particularly a 41% drop in North American revenue during the third quarter of 2014, SodaStream announced a plan that included closing its Mishor Adumim factory in the , laying off approximately 500 Palestinian workers, and shifting production to facilities within Israel's pre-1967 borders to reduce costs and address commercial pressures. The move, completed by mid-2015, was described by CEO Daniel Birnbaum as a "purely commercial" decision amid broader market challenges, though it drew from boycott advocates; Birnbaum countered that such campaigns were antisemitic and counterproductive for Palestinian employment. Subsequent layoffs in 2016 further reduced headcount as the company consolidated operations. On August 20, 2018, agreed to acquire all outstanding shares of SodaStream International Ltd. for approximately $3.2 billion, or $144 per share, representing a 10% premium over the prior closing price and integrating SodaStream as a wholly-owned to bolster 's portfolio in home and sustainable beverages. The transaction closed on December 5, 2018, with committing to maintain SodaStream's Israeli headquarters for at least 15 years. Post-acquisition, SodaStream underwent a 2022 , including a redesigned , color palette, and product tiers, to align with 's emphasis on sparkling water and health-oriented trends while retaining operational independence. In 2023, the company continued workforce adjustments, announcing layoffs of 70-80 employees as part of ongoing cost-management efforts amid a multi-year restructuring trend.

IPO, Growth, and PepsiCo Acquisition

SodaStream International Ltd. completed its on the Global Select Market on November 8, 2010, pricing 5,447,368 ordinary shares at $20 each after underwriters exercised an over-allotment option, raising approximately $109 million. The shares opened trading under the ticker SODA and rose more than 50% within the first two days, reflecting strong initial investor interest in the company's home carbonation technology and international expansion potential. Post-IPO, SodaStream achieved robust financial growth driven by increased of machines, CO2 cylinders, and flavor syrups, particularly in and . Earnings per share expanded 57% in 2012 amid aggressive . By the second quarter of 2018, quarterly revenue hit a record $171.5 million, up 31% year-over-year, with climbing 82% to $26.1 million, fueled primarily by recurring CO2 refill . The stock price recovered from a 2016 low near $13 per share to surpass $140 by mid-2018, yielding over 84% gains that year alone and underscoring sustained demand for at-home beverage customization amid shifting consumer preferences away from bottled sodas. PepsiCo announced its acquisition of SodaStream on August 20, 2018, agreeing to purchase all outstanding shares for $144 in cash per share, valuing the company at approximately $3.2 billion—a 32% premium to the 30-day volume-weighted average price and an 11% premium to the prior closing price. The deal, aimed at bolstering PepsiCo's portfolio in healthier, low-sugar sparkling beverages, closed in January 2019 after regulatory approvals, with SodaStream delisted from Nasdaq thereafter. SodaStream remains a subsidiary of PepsiCo as of 2026, with no changes in ownership, operating within PepsiCo's portfolio of brands focused on home carbonation systems.

Operations

Production Facilities

SodaStream's primary manufacturing operations are centered at its main facility in the Industrial Zone, located in southern near the city of in the region. This site, which produces the majority of the company's products including cylinders and machines, was established following the relocation of operations from the Mishor Adumim industrial zone in the , completed in October 2015. The move addressed logistical and access challenges, including permit restrictions affecting Palestinian workers, though the facility continues to employ a diverse workforce of approximately 2,000 as of 2022. In , SodaStream operates its largest regional production plant in , , which opened in November 2021 to centralize manufacturing and distribution for European markets. This facility focuses on assembly and packaging of machines and related components, leveraging proximity to key consumer bases to reduce shipping times and costs. Following PepsiCo's 2018 acquisition, production has emphasized efficiency, with the Israeli site handling core and cylinder filling while select components globally. Both facilities incorporate sustainability measures, such as the Israeli plant's transition to sources including from northern Israel's turbines, operational as of August 2023. Capacity expansions at supported post-acquisition growth, though workforce adjustments occurred in 2022 amid demand shifts, resulting in 120 layoffs primarily at that site.

Global Sales and Market Performance

SodaStream achieved annual of $543.4 million in , reflecting a 14.1% increase from the previous year, driven primarily by sales of CO2 cylinders and machines in over retail locations worldwide. Quarterly reached a record $171.5 million in the second quarter of , up 31% year-over-year, with rising 82% to $26.1 million, fueled by recurring and expansion in . These figures positioned SodaStream as a leader in the home segment prior to its acquisition by for $3.2 billion in December . Under PepsiCo ownership, SodaStream's performance integrated into the parent's beverage portfolio, but specific standalone revenue disclosures diminished. The business faced headwinds, culminating in an $862 million impairment charge in 2023, which contributed to reduced operating profit in PepsiCo's relevant segments that year. This write-down reflected challenges such as slower-than-expected growth amid shifting consumer preferences and competitive pressures in at-home beverage appliances. In 2024, PepsiCo's operating profit benefited from the absence of this prior-year impairment, though overall segment results did not isolate SodaStream contributions. Online sales via sodastream.com approximated $86 million in 2024, indicating modest traction within a broader retail footprint. SodaStream maintains a dominant position in the global soda maker market, estimated at $870.6 million in and projected to grow at a 7.5% CAGR through 2030, propelled by demand for customizable, low-sugar sparkling beverages. accounted for approximately 38% of its regional market distribution, followed by at 32%, with Asia-Pacific showing accelerated growth potential due to rising health-conscious consumption. Despite post-acquisition hurdles, SodaStream's recurring from CO2 refills and syrups supports sustained market performance in a segment favoring over single-use plastics.

Marketing

Advertising Campaigns

SodaStream's advertising campaigns originated in the during the 1970s, featuring the slogan "Get busy with the fizzy!" and endorsements from comedian in its first national in 1979. These early efforts emphasized the convenience of home and gained cultural traction, with the brand leveraging humor and domestic appeal. By the , commercials continued this lighthearted tone, promoting the product as a fun alternative to store-bought sodas. In 2010, SodaStream relaunched in the UK with a national TV campaign invoking 1970s nostalgia, marking its first such effort in nearly two decades and aiming to recapture market share through retro imagery. The company's expansion into broader international markets, particularly the United States, accelerated with high-profile Super Bowl advertisements starting in 2013. That year's debut spot, "The SodaStream Effect," highlighted environmental benefits by depicting delivery trucks for rival brands idling unused, though an initial version was rejected by CBS for referencing Coca-Cola and Pepsi logos, prompting a revised airing during the game's fourth quarter. Subsequent Super Bowl campaigns featured celebrity spokespersons to boost visibility. In 2014, starred in an ad where she personally endorsed the product while quenching her thirst, positioning SodaStream as a healthier, customizable alternative to mass-produced beverages. The 2020 commercial reunited with aspiring astronaut to explore "water on Mars," tying the product's carbonation process to themes of and . Beyond spots, SodaStream employed diverse celebrity partnerships in global TV and digital campaigns. In 2017 and 2019, actors from —including , , and —alongside from , appeared in whimsical narratives promoting flavor varieties and waste reduction. featured in 2020-2021 holiday ads, such as "The Small Things," emphasizing single-use plastic savings through home sparkling water production. Other endorsements included fitness trainer in 2018 spots highlighting personal health benefits. These campaigns consistently focused on environmental advantages, customization, and cost savings, aligning with SodaStream's core product attributes.

Partnerships and Endorsements

SodaStream has employed celebrity endorsements to enhance brand visibility. In January 2014, actress was appointed as the company's first global , featuring in promotional campaigns that emphasized environmental benefits and convenience, including a advertisement aired on February 2, 2014, which highlighted reducing usage. Johansson's involvement drew attention amid debates over the company's operations, though she maintained her support for the brand's sustainability claims. Fitness expert entered a partnership with SodaStream to promote its products through infomercials and endorsements focused on health-conscious beverage alternatives. Rapper collaborated with the brand in promotional content, aligning with SodaStream's efforts to appeal to diverse consumer segments via . Additional music artists, including , Pixie Lott, and Steve Aoki, participated in international campaigns around 2016 to boost global awareness. Following its acquisition by in 2018, SodaStream formed key brand partnerships to integrate complementary flavors. On October 8, 2020, it launched bubly drops, the first North American collaboration post-acquisition, enabling users to carbonate water with bubly's fruit flavors using SodaStream machines and targeting at-home customization trends. Similar tie-ins with PepsiCo brands like and expanded syrup offerings, leveraging the parent company's portfolio for broader market reach. These partnerships supported SodaStream's growth in functional and flavored beverage segments.

Environmental Impact

Reduction of Single-Use Plastics

SodaStream's systems allow consumers to produce sparkling beverages at home using reusable bottles, which replace the single-use PET bottles employed in commercial sparkling production and distribution. These reusable bottles, typically made from BPA-free PET material, are designed for repeated use—up to 1,000 cycles in some models—and are dishwasher-safe, minimizing the need for disposable . The company estimates that its global user base prevented 5 billion single-use bottles from entering production and streams in alone, based on sales data and assumed substitution rates for bottled sparkling water consumption. In the 2017-2018 period, SodaStream reported that users avoided over 6.3 billion bottles and aluminum cans from environmental , calculated via similar metrics of per-unit displacement. SodaStream pledged to eliminate up to 67 billion single-use bottles by the end of , projecting cumulative avoidance through expanded product adoption and reusable bottle lifecycles, where each SodaStream bottle is said to displace approximately 1,282 single-use equivalents over its service life. These figures derive from internal modeling of beverage substitution, though independent lifecycle analyses of total impacts—including machine production and CO2 —remain limited, with some critiques questioning net reductions when factoring device durability and ancillary plastics.

Sustainability Initiatives

SodaStream incorporates up to 25% recycled plastic materials in the production of plastic parts for its new-generation sparkling water makers starting in 2022. The company maintains a closed-loop system for CO2 cylinders, partnering with entities like Terrapure Environmental in regions such as to intercept and reuse cylinders collected from programs, thereby minimizing disposal and emissions associated with new production. These efforts align with SodaStream's broader goal of reducing its operational , with independent assessments indicating that using SodaStream products can lower emissions by up to 87% compared to producing and transporting PET-bottled sparkling water, based on a 2013 study. In April 2025, SodaStream launched the Sustainability Concierge service, offering select consumers personalized consultations to identify and replace single-use plastics in household routines with reusable alternatives, as part of a targeted campaign to foster plastic-free homes. Complementing this, the global "Replace" initiative encourages habit substitution toward sustainable practices, integrating educational outreach on environmental impacts like the low 9% global rate. These programs build on earlier commitments, such as 2021 sustainability goals aimed at further curbing waste and emissions through improvements. SodaStream's initiatives are integrated into PepsiCo's overarching ESG framework post-2018 acquisition, emphasizing scalable reductions in and emissions, though specific SodaStream metrics remain primarily self-reported via annual environmental campaigns. While these efforts promote principles, their long-term efficacy depends on consumer adoption and verification beyond company estimates.

Social and Economic Impact

Employment and Workforce Integration

SodaStream's workforce has historically included a significant number of Palestinian employees from the , with the company employing up to 500 such workers at its Mishor Adumim , where they received Israeli-level wages and benefits alongside Israeli colleagues. This integration model was presented by former CEO Daniel Birnbaum as a form of "economic ," fostering interaction between Israeli and Palestinian workers in a shared production environment. In response to (BDS) campaigns targeting its operations, SodaStream relocated its primary factory to the Idan Hanegev in Israel's region in September 2015, resulting in the layoffs of approximately 470 Palestinian workers who were unable to obtain work permits or commute across the Green Line. Initially, 74 experienced Palestinian workers were transferred to the new site via company buses, but they were laid off in March 2016 after Israeli authorities denied permit renewals, a decision Birnbaum attributed to bureaucratic obstacles rather than concerns, criticizing it for undermining stability and providing fodder for BDS narratives. Post-relocation, SodaStream expanded hiring to include diverse Israeli demographics, creating hundreds of positions filled by , , Israeli Arabs, , and others from the area, with the factory employing 1,400 workers by 2016, one-third of whom were Arabs from nearby . This shift emphasized local workforce integration, including underemployed women, while maintaining a multicultural environment where , Christians, , and collaborated without overt ethnic divisions. As of 2023, SodaStream maintained a global workforce of approximately 3,800 employees across its operations in 48 countries, with the Israeli facilities continuing to prioritize diverse hiring from regional communities, including and Bedouins, despite occasional layoffs driven by operational adjustments. The company's approach has been credited with promoting practical coexistence through , though external pressures like BDS and permit restrictions have periodically disrupted Palestinian inclusion.

Contributions to Regional Economies

SodaStream's primary manufacturing facility, relocated to the Idan Industrial Zone in near the desert in late 2015, has bolstered economic activity in southern , a region prioritized for industrial development to counterbalance central economic concentration. The move, which consolidated production from the prior site, received a 25-million-shekel (approximately $7 million) grant from the Israeli government to support and operations in this underdeveloped area. By 2022, SodaStream employed about 2,000 workers in from its global total of 3,800, with the plant integrating Jewish and Arab laborers, including from nearby communities like , thereby injecting wages, local procurement, and skills training into the regional labor market. Prior to the 2015 relocation, the company's Ma'ale Adumim factory in the West Bank industrial zone employed around 1,300 workers, including 950 Palestinian and Israeli Arabs alongside 350 Israeli Jews, generating direct income for Palestinian families through salaries paid without regard to ethnicity or citizenship. These operations contributed to local economic circulation via payroll taxes and supplier spending, though the site's closure led to the layoff of approximately 500 Palestinian workers in 2016 amid permit restrictions and cost efficiencies. Overall, SodaStream's Israeli footprint has supported export-oriented manufacturing, with annual sales exceeding $700 million by 2019, much of it derived from production in these facilities, aiding Israel's high-tech and consumer goods sectors.

Controversies

West Bank Operations and BDS Boycotts

SodaStream operated its primary manufacturing facility in the Mishor Adumim industrial zone, located within the Ma'ale Adumim settlement area in the West Bank, from the early 2000s until its closure in 2015. The factory employed up to 500 Palestinian workers from nearby areas such as Ramallah and Jericho, comprising roughly half of the workforce alongside Israeli employees, providing wages often reported as higher than local averages and fostering cross-cultural interactions described by company executives as an "island of peace." Palestinian employees received benefits including transportation and training, though some reports from advocacy groups alleged poor working conditions like extended shifts. The (BDS) movement, a Palestinian-led campaign launched in 2005, targeted SodaStream starting around 2013, citing the factory's location in an industrial zone as complicity in the occupation of Palestinian territories. BDS activists urged consumers, retailers, and investors to shun the company, leading to high-profile actions such as criticism from organizations including Oxfam and Human Rights Watch, protests against celebrity endorser , who resigned her Oxfam ambassadorship in 2014 after the organization objected to her SodaStream endorsement in light of the factory's location, and divestments by entities including Norwegian pension funds and some U.S. universities. The campaign framed the factory as normalizing Israeli control over disputed lands, despite its employment of , which BDS viewed as insufficient to offset territorial claims. On October 29, 2014, SodaStream announced the closure of the Mishor Adumim facility and relocation to in southern , citing rising operational costs and security concerns rather than direct BDS pressure, though the timing coincided with intensified boycotts. The move, completed in October 2015, resulted in the layoffs of approximately 470 Palestinian workers, with subsequent permit restrictions from Israeli authorities preventing most from transferring to the new site; by February 2016, the remaining 75 were dismissed. CEO Daniel Birnbaum testified before the U.S. in July 2015 that the BDS campaign inflicted direct economic harm on Palestinian families by eliminating these jobs, labeling the boycotts "antisemitic" and counterproductive to peace efforts. BDS declared the closure a victory, arguing it pressured to dismantle settlement infrastructure, but continued targeting SodaStream post-relocation, deeming the company still complicit due to its Israeli ownership and operations, with some boycott calls persisting even after its acquisition by PepsiCo in 2018. Independent analyses noted the paradox: while BDS aimed to isolate economically, the factory's operations had provided tangible employment benefits to , and its closure demonstrably worsened their livelihoods without altering broader territorial dynamics. Sources aligned with BDS, such as advocacy reports, emphasize legal and ethical objections to the site's location, whereas company records and neutral reporting highlight the employment's practical contributions amid ongoing permit and security barriers.

Palestinian Worker Relations and Layoffs

SodaStream employed approximately 500 Palestinian workers from the at its Mishor Adumim factory, representing a significant portion of its roughly 1,200 total workforce prior to the facility's closure. These positions offered wages reported to be two to three times higher than comparable jobs in Palestinian-controlled areas, along with benefits such as company-provided transportation and , which CEO Daniel Birnbaum highlighted as supporting extended family networks—estimating that 74 such workers sustained approximately 740 dependents. Birnbaum described the factory as a site of cross-cultural interaction, with Israeli and Palestinian employees sharing workspaces and, on occasions like , participating in joint meals to foster goodwill. Relations were not without friction, including security protocols at the settlement-area facility that involved checks and restrictions, which some Palestinian workers cited as sources of tension. In July 2014, the company dismissed 60 Palestinian employees following protests over inadequate provisions for breaking the fast during night shifts, where workers received what they described as insufficient or unsuitable food despite fasting all day. SodaStream maintained that it treated all staff respectfully and provided special meals for Muslim workers, but the incident underscored disparities in conditions and pay, with Palestinian wages averaging lower than those of Israeli counterparts despite claims of equal treatment. Birnbaum later testified to that SodaStream had been the largest private employer of Palestinians in recent years, arguing that such integrated workplaces demonstrated economic incentives for over conflict. The factory's relocation from Mishor Adumim to inside Israel's pre-1967 borders, announced in October 2014 and completed by October 2015, resulted in the layoffs of all 500 Palestinian workers, as the move was necessitated by expansion constraints and political pressures including BDS campaigns. To mitigate losses, SodaStream secured temporary Israeli work permits for 74 skilled Palestinian employees to commute to the new site via company buses, a two-hour journey each way, but these permits expired without renewal on February 29, 2016, leading to their termination. Birnbaum attributed the final layoffs to "idiotic Israeli " from civil authorities rather than BDS, criticizing the policy for ignoring the economic benefits to Palestinian families and regional stability. He contended that the movement, by targeting the operations, directly contributed to the job losses it purported to protest, calling it counterproductive and, in his view, rooted in antisemitic motives that prioritized ideology over Palestinian livelihoods. Post-relocation, SodaStream hired hundreds of Israeli workers, including Bedouins and others from southern , but did not reinstate Palestinians en masse due to permit restrictions.

Accusations of Bias and CEO Statements

In September 2015, SodaStream CEO Daniel Birnbaum accused the (BDS) movement of , describing its campaign against the company as "pointless" and harmful to the workers it purported to support. Birnbaum argued that if BDS advocates truly prioritized welfare, they would have encouraged SodaStream's operations in the rather than pressuring its closure, noting that the factory employed approximately 500 alongside Israeli workers in an integrated environment. Birnbaum further characterized BDS tactics as "propaganda... politics... hate... [and] anti-Semitism," asserting that the movement prioritized ideological opposition to over economic opportunities for , who earned wages at the factory exceeding the Israeli minimum and surpassing typical Palestinian Authority salaries. In a July 2015 congressional testimony before the U.S. House Oversight and Government Reform Committee, he detailed how BDS campaigns distorted legal interpretations of Israeli court rulings to justify boycotts, framing them as a form of that ignored the factory's role in fostering cross-community employment. The BDS movement and affiliated activists have leveled accusations of inherent political bias against SodaStream, claiming its operations profited from and normalized activity on occupied land, thereby entrenching what they term an apartheid system. These critics, including groups like the Palestinian BDS National Committee, alleged labor exploitation, such as paying Palestinian workers lower wages than Israelis and subjecting them to discriminatory conditions, though Birnbaum and factory employees refuted this, citing equal pay structures verified by independent audits. Such claims often appear in advocacy publications with explicit anti-Israel agendas, which have been critiqued for selectively omitting data on wage premiums— at the facility reportedly earned 2-3 times the average—and for conflating with political endorsement of settlements. Birnbaum later clarified in 2016 that Israeli bureaucratic restrictions, rather than BDS pressure alone, precipitated the and associated layoffs of Palestinian staff, though he acknowledged the as a "constant nuisance" diverting resources without materially impacting sales. By 2017, he reflected that BDS scrutiny inadvertently boosted brand visibility, turning adversity into a advantage through from endorsements and counter-campaigns. These statements underscore Birnbaum's emphasis on pragmatic decisions amid geopolitical tensions, prioritizing verifiable outcomes over partisan narratives.

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