Pepsi Changes Image – Acquires Mineral Water SodaStream for $3.2 Billion

Pepsi announced today that it is acquiring SodaStream, an Israeli company that produces mineral water, for $3.2 billion. This move will further soften Pepsi’s image as a producer of high-calorie beverages by offering healthier options, as reported by CNN.

SodaStream products, marketed as a healthier alternative to sugary sodas, align with Pepsi’s goal of “creating more nutritious products while reducing our environmental footprint,” said Pepsi CEO Indra Nooyi, who envisions a “healthier, more sustainable planet.”

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Nooyi categorized her company’s products into three categories. The first is Fun For You, which includes traditional, high-calorie sugary drinks and snacks. Better For You includes diet drinks and low-calorie snacks, while Good For You includes healthier foods such as Quaker Oats oatmeal, Sabra hummus, and Naked Juice.

SodaStream produces machines and refillable cylinders that allow users to make their own drinks or mineral water. This gives Pepsi a new product line that will reach its customers through their homes rather than through stores. According to CNBC, this is one of the boldest moves Indra Nooyi has made in her 12 years as CEO of Pepsi.

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The stock values of this Israeli company have increased by over 320 percent in the last two years after rebranding as a mineral water company.

Pepsi will purchase SodaStream in cash from reserves, and the deal is expected to close likely early next year.