Will Monster Be SodaStream's Next Big Catch?
Nov 13th 2012 12:00PM
Updated Nov 13th 2012 12:04PM
There's another major player in the supermarket aisle validating SodaStream's (NAS: SODA) platform.
Campbell Soup (NYS: CPB) -- yes, that Campbell Soup -- is striking a deal to get its brands into SodaStream bottles.
There won't be Chicken Noodle Cola or Cream of Broccoli Cream Soda available anytime soon. We'll leave that kind of taste-bud torturing to Jones Soda. Campbell's deal involves licensing its V8 Splash and V8 V-Fusion brands for the SodaStream carbonated beverage system.
When the product hits stores during the second quarter of next year, folks will be able to add syrups that initially include V8 Splash Tropical Blend, Berry Blend, and Fruit Medley flavors to their fizzed-up water. V8 V-Fusion concentrates will include Strawberry Banana, Pomegranate Blueberry, and Peach Mango.
This isn't the first time that SodaStream has teamed up with a consumer titan. Kraft Foods (NAS: KRFT) and SodaStream teamed up to roll out Country Time and Crystal Light SodaStream syrups earlier this year.
It also won't be the last deal.
You won't see the big boys of pop playing here. The move would cannibalize their sales and leave their bottlers fuming. However, it wouldn't be a shock to see Monster Beverage (NAS: MNST) step up next.
SodaStream already has its own proprietary energy drink syrup, though obviously it wouldn't hurt to have an established brand. There are now more than 150 flavor varieties available for SodaStream, but there's always room for established brands.
The move would actually be timely for Monster. There are health concerns about the energy drink market in general and Monster in particular. Between an FDA investigation and some legislators rallying for stricter labeling, Monster could use the opportunity to associate itself with the eco-friendly platform known for fresh homemade sodas.
And -- let's be frank -- Monster can use the revenue. Top-line growth decelerated to a mere 14% in last week's quarterly report.
It can always test the waters with one of its secondary brands such as Assault or Khaos to see if the move eats into canned sales.
Either way, if the mighty Kraft and Campbell Soup have gone SodaStream, it's really just a matter of time before Red Bull, Monster, or even one of the soda-giant energy brands strike a deal to be the first to see if it can negotiate a deal that may even include short-term exclusivity.
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The article Will Monster Be SodaStream's Next Big Catch? originally appeared on Fool.com.Longtime Fool contributor Rick Aristotle Munarriz has no positions in the stocks mentioned above. The Motley Fool owns shares of SodaStream. Motley Fool newsletter services recommend Monster Beverage and SodaStream. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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