According to reports, PepsiCo has bought Sodastream international limited, a fizzy-drink distributor for a whooping $3.2 Billion.PepsiCo in this move aims to improve it’s product owing to the rising consumer demand.This will see it’s entrance in many homes of health conscious customers.PepsiCo will pay $144 per share for Sodastreams outstanding stock which stands at 32% premium to it’s weighed monthly stock.This move by Indra Nooyi, PepsiCo chief executive is a great risk in aiming to boost revenue growth which had earlier seemed to fade.While PepsiCo’s products had a low demand due to their association with traditional sugary drinks,Sodastream on the other hand was able to raise it’s success in locking in customers. It’s sales rapidly increasing with Topo Chicho and La Croix giving PepsiCo’s sparkling water,Bubly a heated competition.
However, PepsiCo is working on it’s services which have toiled way too long with consumers drifting from their sugary products. The Sodastream takeover will be in January where Indra Nooyi has spearheaded in steering Dorito maker and Mountain Dew towards healthy products such as Aquafina, bottled water and Sabra hummus.
“PepsiCo is finding ways to reach consumers beyond the bottle” Ramon Laguart the company’s president said in a statement on Monday.This statement airs the company’s commitment in increasing the company’s revenue and satisfaction. According to research most people tend to be attracted to environmental friendly products thus this aspect assures PepsiCo of something far better in the coming days.Customers will no longer have to drag Sodawater cases from the groceries since the company will now reach them in their own homes.
This deal will see Sodastream’s entry into global tracks of PepsiCo distributing 80,000 individual retail stores across over 45 countries. “Sodastream is highly complementary and incremental to our business adding to our growing portfolio” Ramon laguarta said in a statement. This summarized the deal as the best path to be trodden towards betterment of these two great giants.