Starbucks in talks to acquire 10 per cent of SodaStream

Posted by AFN Staff Writers on 28th April 2014
SodaStream could go into partnership with Starbucks

Global coffee shop giant Starbucks Corporation is reportedly in advanced talks to acquire 10 per cent of home carbonated beverage machine company SodaStream International Ltd at a company value of $1.1 billion.

Starbucks’ offer reflected a 30 per cent premium on the $850 million market price of SodaStream. It is believed an official announcement will be made soon.

Deal would broaden SodaStream distribution

Market sources have previously suggested that SodaStream was seeking a partner, like the partnership between the Coca-Cola Company and coffee machine maker Green Mountain Coffee Roasters Inc. The Coca-Cola Company acquired a 10 per cent share of Green Mountain Coffee Roasters for approximately $1.25 billion, and announced plans to launch a home soda maker machine, which could make carbonated beverages from Coca-Cola syrups.

Such a machine would increase competitive pressure on SodaStream, which some commentators have suggested has compelled SodaStream to seek a partner of its own.

Industry commentators have suggested that collaboration with Starbucks would give SodaStream a distribution platform and marketing incentives, such as sales campaigns and special flavours for Starbucks customers. The expanded distribution channels could help SodaStream break into the US market, which has been the most difficult market for the Company to penetrate.