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Pepsico Just Bought SodaStream, A Sparkling Water Rival, For $3.2 Billion

The battle for the top spot in the soft beverages industry just got a little more lopsided, as Pepsico just bought one fast-rising competitor SodaStream in a bold move.

sodastreamPhoto: Wassersprudler // Wikimedia Commons 

In a press release, Pepsico unveiled that they paid $3.2 billion for the at-home sparkling water maker that’s made their new owner a common target over the years. In the past, SodaStream targeted Pepsico and other beverage giants on their heavy use of plastics. Now, Pepsico is utilizing SodaStream’s strength to their advantage as they aim to both reduce plastics and move into healthier beverages.

Both sides will benefit from the new acquisition, which is expected to complete in early 2019. Pepsico wants to reduce their environmental footprint and reduce plastics, and SodaStream appears to be a part of that new strategy for them. They have tested out products with the sparkling water machine in the past, so reintroducing those could be part of their plan.

As for SodaStream, they will get a massive boost in distribution as a result of their new owner, meaning that they can rapidly scale who and what their product goes to. That means that you can expect to find more SodaStream machines and products in stores, while seeing a drop in plastic bottles used by Pepsico products.

The transaction also brings into question the future of soft beverages. As sparkling waters continue to dominate the market and soda continues to drop, Pepsico’s acquisition could be a telling sign that making full-sugar sodas may no longer be feasible for the industry’s giants. Only time will tell if that ends up being the case, however.