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PepsiCo bolsters partnership with at-home soda machine maker SodaStream

Published 14 September 2015

PepsiCo has announced that it is bolstering its partnership with Israel-based at-home soda machine maker SodaStream International to offer caps filled with Pepsi and Sierra Mist to flavor water carbonated by these machines.

SodaStream

The caps will be made available through SodaStream's website for $3.49.

About 50 Bed Bath & Beyond stores will sell the caps, each of which will make about half a liter of soda.

PepsiCo is looking at several technologies in its homemade products business unit and SodaStream is one of the many firms it is looking at to support its potential ideas, reported The Wall Street Journal (WSJ).

Last October, Pepsi had conducted a pilot retail test in Florida.

PepsiCo's move comes at a time when Keurig Green Mountain is readying the launch of countertop cold-drink machine later this year featuring PepsiCo's rival brands - Coca-Cola and Dr Pepper Snapple. Since 2014, Coca-Cola has built up 16% equity stake in Keurig.

Last month, the single-serve coffee brewer Keurig said sales of its carbonated cold-drink machine would begin on its website in late September or early October.

The soft-drink giants are expecting their make-it-at-home appliances to give a push to soda sales in the US, where the sales fallen for the last decade due to growing health concerns over consumption of sugary drinks.

Meanwhile, SodaStream is also looking at increasing its revenues after a 27% dip in its first-half sales to $190.2m from a year earlier.

SodaStream, which is a leading maker of carbonation machines, has been struggling to pull in big-name soda brands, and its penetration in the household segment remains at 2%, according to the publication.


Image: SodaStream plans revival with PepsiCo partnership. Photo: Courtesy of WestportWiki/Wikipedia.