SodaStream Annual Report: Failure Finds Awards

Seth Golden profile picture
Seth Golden


  • SodaStream enters 2016 with two consecutive years of metric declines.
  • Bonus compensation is found in spite of failing to meet company objectives.
  • PepsiCo relationship lacking supportive marketing.

What is going to come of SodaStream (NASDAQ:NASDAQ:SODA) this year? That's what the few investors still awaiting something of relevance to happen to the company are pondering I would propose. Beyond offering a delayed launch of the SodaStream Mix and 4th quarter launch of the SodaStream Spirit machines, there has been little to no news surrounding the company in 2016. After two consecutive years of sales and earnings decline, the company has found its state of business in a depressive state, with some investors still awaiting a return to growth along many metrics. More importantly, investors are looking for shares of SODA to break out above the $13-$17 range where the stock currently languishes.

The home carbonation category that SodaStream gave birth to and has spirited for decades, with resurgence from 2007-2013, has now failed to generate user growth, brand and category appeal amongst consumers. Most every region around the world for which SodaStream distributes home carbonation systems has witnessed sales declines and most every region around the world has exhibited distribution contractions for SodaStream products. These results have come at the expense of a 2014 Growth Plan that has greatly underperformed even the company's own expectations. And of course, this underperformance has also come at the expense of SODA's share price, which has fallen precipitously since late 2013.

I would be of the opinion that when a company exhibits two consecutive years of metric declines and fails to deliver on most every objective that would benefit shareholders, management would be called to the forefront of accountability. Instead, as it pertains to SodaStream executives, they have only benefited from mismanaging the company and failing to deliver returns on shareholder capital. The CEO of SodaStream has benefited the most with approved stock grants since 2012 and as recent as December 2015. The CEO has also been granted

This article was written by

Seth Golden profile picture
Formerly Chief Market Strategist at Capital Ladders Advisory Group LLC. After the sale of certain of CLAG's retail and institutional assets in October 2015, I have commenced my latest venture in the CPG industry which is centered on the development and licensing of consumer and commercial technology. CooLinX Integrated Technologies develops technologies for the beverage and CPG industry. We are presently effecting licensing agreements with multi-national brands and co-developing products aimed for mass market consumption.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (8)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.