SodaStream’s path to its $3.2 billion Pepsi deal

As Americans try to eat healthier, junk-food brands are trying to become healthier, too. That’s part of the rationale behind Pepsi’s $3.2 billion purchase of refillable seltzer water maker SodaStream.

While PepsiCo is expected to grow 2.3 percent this year, SodaStream recently increased its growth forecast for 2018. It now expects to grow 23 percent this year, up from its previous projection of 15 percent growth.

SodaStream brought in a record $171.5 million in revenue last quarter, most of which came from the sale of carbon dioxide capsule refills, reusable bottles and flavorings. Large refill capsules can cost $60 before deposit refunds.

Sales of SodaStream had fallen off after 2013, thanks to competition from cheaper, pre-packaged soda waters, but have since more than recovered thanks to overall growth in the carbonated water category.

Here’s the same chart but with the data averaged over the past 12 months so there aren’t seasonal swings.

SodaStream sales reflect a broader move toward non-sweetened carbonated water as the sale of sugary drinks — like Pepsi — has stagnated.

Since 2008, U.S. sales of carbonated bottled water has grown 129 percent and flavored bottled water — which includes flavored carbonated water like La Croix — has grown 91 percent, while soft drink sales overall grew just 19 percent, according to Euromonitor International.

In 2017, unflavored carbonated bottled water sales grew more than 10 percent; soft drinks — essentially all non-alcoholic beverages — rose 1.6 percent.

This article originally appeared on Recode.net.

Will you support Vox’s explanatory journalism?

Most news outlets make their money through advertising or subscriptions. But when it comes to what we’re trying to do at Vox, there are a couple reasons that we can't rely only on ads and subscriptions to keep the lights on.

First, advertising dollars go up and down with the economy. We often only know a few months out what our advertising revenue will be, which makes it hard to plan ahead.

Second, we’re not in the subscriptions business. Vox is here to help everyone understand the complex issues shaping the world — not just the people who can afford to pay for a subscription. We believe that’s an important part of building a more equal society. We can’t do that if we have a paywall.

That’s why we also turn to you, our readers, to help us keep Vox free. If you also believe that everyone deserves access to trusted high-quality information, will you make a gift to Vox today?

One-Time Monthly Annual

$5/month

$10/month

$25/month

$50/month

Other

$

Yes, I'll give $5/month

Yes, I'll give $5/month

We accept credit card, Apple Pay, and Google Pay. You can also contribute via