One of the largest beverage company Pepsi has announced that it is eyeing to acquire SodaStream, which is a Tel Aviv-based beverage company. The deal is expected to be done at an amount of $3.2 billion.
This step has been primarily taken because more consumers are these days preferring sustainable, in-home options rather than sugary beverages.
Pepsi with this acquisition is trying to diversify its portfolio and expand its reach internationally. At present, Pepsi products are sold in retail shops in 45 countries, majorly in the U.S., Germany, France and Canada.
“PepsiCo and SodaStream are an inspired match. Daniel and his leadership team have built an extraordinary company that is offering consumers the ability to make great-tasting beverages while reducing the amount of waste generated. That focus is well-aligned with Performance with Purpose, our philosophy of making more nutritious products while limiting our environmental footprint. Together, we can advance our shared vision of a healthier, more sustainable planet,” PepsiCo CEO Indra Nooyi stated.
It was in the starting of this month that Nooyi announced to step down from her position. She had led the company in a great manner and under her leadership, Pepsi has shifted toward healthier options, like Bubly, largely seen as a competitor to the popular LaCroix line.
And now, the deal with SodaStream will mark another step towards more health conscious offerings from the company. This particular deal is expected to complete by January.
Among other things, the deal marks a play for the home market, which has proven elusive for Pepsi, as more and more consumers buy grocery supplies online. “We get to play in a business — home beverages — where we don’t play,” Pepsi CFO Hugh Johnston said.