Connect with us

Hi, what are you looking for?

Jewish Business News

Business

SodaStream Warns of Weak Demand in US

 

SodaStream International, an Israeli maker of home soda machines, estimated third-quarter revenue that fell short of analysts’ expectations, citing lower-than-expected demand. Sales were hurt by a continuing struggle to gain new customers and by weak demand for its soda makers and flavors in the United States.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.

SodaStream said it must change its strategy and improve its execution. The company already has begun shifting the brand toward health and wellness, primarily in the U.S., where the message will resonate more strongly with consumers.

The company estimated revenue of about $125 million for the quarter ending Sept. 30, lower than the $154 million recently expected by analysts. A year ago, the company reported $145 million in third-quarter revenue. Sodastream’s share price had already fallen 4.6% yesterday to $27.57 and fell a further 17.4% in premarket trading to $22.77, giving a market cap of $577.8 million.

SodaStream CEO Daniel Birnbaum said in a statement, “We are very disappointed in our recent performance, Our US business underperformed due to lower than expected demand for our soda makers and flavors, which was the primary driver of the overall shortfall in the third quarter. While we were successful over the last few years in establishing a solid base of repeat users in the US, we have not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved.”

He added, “The third quarter results are a clear indication that we must alter our course and improve our execution across the board. We have already begun a strategic shift of the SodaStream brand towards health and wellness, primarily in the US, where we believe this message will resonate more strongly with consumers.”

“We firmly believe that our actions to shift the brand and improve execution will strengthen our leadership position in the home carbonation category and deliver enhanced shareholder value, ” he concluded.

 

 

Newsletter



Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Entertainment

The Movie The Professional is what made Natalie Portman a Lolita.

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.