Boston, MA 05/23/2014 (wallstreetpr) – The maker of home beverage systems and related products Sodastream International Ltd (NASDAQ:SODA) is an important target for many companies if recent reports are anything to consider. The company’s technology is not only for the future carbonated beverage industry, but also has the potential of helping the struggling beverage companies to live another day in an increasingly challenging industry. However, there is something that might keep some buyers away from Sodastream.
The political issues between Israel and Palestine are rearing their head into the business of Sodastream International Ltd (NASDAQ:SODA), or at least, into possible deals between the company and big investors.
Earlier this year the company was pushed into the spotlight after actress Scarlett Johnson appeared in the company’s Super Bowl advert. The actress who served as an ambassador of Oxfam, a charity organization that deems West Bank settlement illegal, kicked the storm with the Sodastream commercial and eventually had to drop Oxfam to continue ties with Sodastream.
Consumer boycott
As speculations heighten that Starbucks Corporation (NASDAQ:SBUX), Dr Pepper Snapple Group Inc. (NYSE:DPS) and PepsiCo Inc (NYSE:PEP) are among the potential suitors seeking at least a 10-percent stake in Sodastream, threats of consumer boycotts can be seen taking the better part of the possible deals.
An activist organization in Palestine has particularly issued warning of imminent boycott of Starbucks products if the company makes good its intention to invest in Sodastream International Ltd (NASDAQ:SODA). There have been widespread speculations that Starbucks, a world leading provider of coffee, is considering a stake in Sodastream as it seeks to attract more revenue and profits through diversification.
The rumors of a possible deal between Starbucks and Sodastream came at a time when the coffee provider also announced its intensions to start offering alcoholic drinks in its stores in clear efforts to boost revenue.
Nothing of that kind
Whether it is a tactical way to handle hot issues or something, Starbuck recently dismissed as rumors reports about its possible deal with Sodastream International Ltd (NASDAQ:SODA). However, its withdrawal from the acquisition contest would only improve the chances of other competitors jostling for the promising do-it-yourself soda systems provider.
Sodastream recently reported revenue improvement as it made big gains in Asia-Pacific and Europe in 1Q2014.
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