SodaStream International, Ltd.
) has entered into a strategic alliance with Sunny Delight
Beverages Co., a leading juice-based beverage company.
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The companies will develop new flavors under the Sunny D brand,
such as SunnyD Tangy Original Orange, Orange-Strawberry and other
flavors. These products will be made exclusively for the
SodaStream home beverage carbonation systems and are expected to
hit U.S. markets from the second half of 2014
SodaStream International's soda making systems, sold under the
SodaStream brand, offer a healthier way to enjoy carbonated
beverages at home. SodaStream's products are primarily sold at
Bed Bath & Beyond, Inc.
Sodastream, a leading maker of beverage carbonation systems for
homes, has been collaborating with other companies to create new
flavors that can be used in its home carbonation systems and thus
boost its sales. Last month, the company formed a strategic
alliance with Skinnygirl, a lifestyle company created by Bethenny
Frankel, an author, chef, TV personality and entrepreneur. Per
the alliance, the companies will develop new flavors that are low
in calorie, naturally sweetened, especially for women. These
flavors offered under the Skinnygirl brand are to be used in
SodaStream home carbonation systems.
Last week Sodastream reported fourth-quarter 2013 earnings of 3
cents per share, surpassing the Zacks Consensus Estimate of 1
cent by 200%. However, the estimate took into account
management's warning last month about the fourth quarter being
much more challenging than expected.
Fourth-quarter 2013 total revenue of $168.1 million increased
26.4% year over year and beat the Zacks Consensus Estimate of
$167 million. Though the top line held up relatively well, the
soda machine maker's fourth-quarter bottom-line performance was
below expectations. The failure to achieve the desired margins
due to pricing and cost headwinds during the holiday season led
to the soft results. SodaStream expects some of the headwinds
seen in the second half of 2013 to continue into the first half
SodaStream International carries a Zacks Rank #5 (Strong