SodaStream (SODA): Color on being a sympathy play on GMCR getting acquired
Earlier we mentioned SodaStream (SODA) as a potential sympathy play on GMCR. We wanted to provide a bit more color. SodaStream, which makes home beverage carbonation systems, is a possible sympathy play on GMCR being acquired at a huge premium this morning (see 8:00 comment for details). SODA has been trying to make the purchase of two-liter soda bottles and soda cans a thing of the past. While its carbonation systems are fairly popular in Europe, and especially in Switzerland, SODA has had difficulty cracking the all-important US market.
It's worth noting that in February 2014 Coca-Cola (KO) took a 10% stake in Green Mountain Coffee (GMCR), which makes the popular Keurig one-cup coffee brewer. Coke is now SODA's largest shareholder. KO recently helped launch Green Mountain's new cold drink machine, called Keurig Kold. It's basically a home soda fountain. And that's mainly why SODA could be seen as a sympathy play on GMCR getting bought as that's what SODA focuses on.