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Pepsi Expands Deal with SodaStream to Make Soda Caps

PepsiCo, Inc.PEP has reportedly expanded its partnership with SodaStream International Ltd. SODA to make caps filled with Pepsi and Sierra Mist. These caps can be used to make soda on SodaStream's at-home soda machines. The Israel-based manufacturer of household soda machines announced last year that Pepsi's caps are being tested on a limited basis in Florida.

The soda caps would reportedly be available on SodaStream's website and in about 50 Bed Bath & Beyond Inc. BBBY retail stores across the United States. A four-cap pack will cost $3.49 with each cap making about half a liter of soda.

Soda giants are working to develop new packing formats for their drinks to improve sales. Pepsi's rival, The Coca-Cola Company KO , has a similar partnership with Keurig Green Mountain under which the latter will exclusively make and sell Coca-Cola branded single-serve pods for use on its upcoming Keurig Cold at-home beverage system.

Keurig Green Mountain also has a similar agreement with another Pepsi rival, Dr Pepper Snapple Group, Inc. The company will make exclusive Dr Pepper branded pods compatible with its cold brewer, scheduled to be launched in fall 2016. The new machine would use pods to make a variety of soft drinks such as sodas, sports drinks and other beverages.

While Pepsi has a Zacks Rank #3 (Hold), SodaStream is a Zacks Rank #5 (Strong Sell) stock. SodaStream has been witnessing soft sales in the U.S. for the past few quarters due to low demand for its products - soda/sparkling water machines and flavored syrups. It remains to be seen if deals like the one with Pepsi can improve the company's volumes, going ahead.

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COCA COLA CO (KO): Free Stock Analysis Report

PEPSICO INC (PEP): Free Stock Analysis Report

BED BATH&BEYOND (BBBY): Free Stock Analysis Report

SODASTREAM INTL (SODA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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