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PepsiCo Steps Up Beverage Game With SodaStream Professional

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PepsiCo, Inc. (PEP - Free Report) is set to launch SodaStream Professional this fall as part of the expansion of its SodaStream brand. This eco-friendly hydrating platform has been tested earlier with a few customers and the results turned out to be encouraging. With the help of this mobile-enabled platform, consumers can customize and keep a check on their intake of the water-forward beverage.

Notably, SodaStream Professional is another step forward in the personalized beverages space as it can be used in workplaces, college campuses and airports. Further, the product comes with several unsweetened flavors, carbonation levels and temperatures to choose from in a bid to create the perfect drink. Apart from these, it includes a mobile app, namely SodaStream Connect, which can record customers’ favorite drink combinations, set hydration goals and track the number of plastic bottles saved to date.

SodaStream Professional is also touted to be the latest innovation in PepsiCo's Beyond the Bottle portfolio, which is a new hydration platform that aims at making it easier for people to stay hydrated. Moreover, this launch is seen as part of the company’s efforts to reduce the usage of plastic, speed up recycling rates and reinvent packaging. Going ahead, management expects this new initiative to lead to a decline in the usage of virgin plastic to the tune of 35% by 2025.

We note that shares of this New-York based company have gained 27.8% in the past three months, outperforming the industry’s growth of 21.9%.



Acquired in 2018, the company’s SodaStream brand is one of the leading at-home sparkling water makers with growing popularity across the United States. The SodaStream business continued to deliver robust growth of more than 20% as more customers experimented with this environment-friendly at-home platform.

The social distancing and shelter-in-place norms stemming from the ongoing coronavirus pandemic have shifted consumption habits more toward at-home channels. Also, declines in immediate consumption channels, disruptions due to retail closures and other restrictions relating to the pandemic have been concerning. Consequently, this Zacks Rank #3 (Hold) stock, which shares space with Coca-Cola Company (KO - Free Report) , Mondelez International (MDLZ - Free Report) and Kellogg Company (K - Free Report) , withdrew guidance for 2020 due to uncertain COVID-19 impacts. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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