SodaStream Gains on Deal to Carbonate Some Kraft Beverages
SodaStream International Ltd. (SODA), a maker of machines that carbonate tap water, rose after saying it would team with Kraft Foods Inc. (KFT) to offer fizzy versions of beverages including Crystal Light and Country Time lemonade.
SodaStream, based in Airport City, Israel, advanced (SODA) 4.7 percent to $39.54 at 4 p.m. in New York. Kraft rose 0.9 percent to $37.74.
The agreement, covering the production, marketing, distribution and sale of Kraft flavors, is the first time the Northfield, Illinois-based company has used its brands in carbonated drinks, the companies said today in a statement. Financial terms weren’t disclosed.
“Branded offerings will help improve consumer awareness of the SodaStream product,” Mitchell Pinheiro, an analyst at Janney Montgomery Scott LLC in Philadelphia, wrote today in a note to clients. The partnership “provides an element of credibility to this relatively nascent stage, at-home soda- making trend in the U.S.” He rates SodaStream “buy.”
The Kraft flavors will be sold in stores starting in the second quarter, the companies said. Consumers add flavors, such as diet cola and cream soda, to water they’ve carbonated with SodaStream’s machines.
The pact may serve as a model for future deals since SodaStream “has been actively pursuing potential co-branding partnerships,” Joseph Altobello, an analyst at Oppenheimer & Co. in New York, wrote today in a note. He rates the stock “outperform.”
To contact the reporter on this story: Chris Burritt in Greensboro at cburritt@bloomberg.net
To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net
Rate this Page