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Wal-Mart Rollout Puts the Fizz Back Into SodaStream

SodaStream (NASDAQ: SODA  ) continues to offer the promise of providing a home beverage maker solution for the U.S. market, yet the company struggled through a difficult couple of quarters that has the stock at multi-year lows. After decades of solid growth in Europe and continuing success in the first quarter, the Americas were suppose to offer unlimited growth with the ability of the home beverage maker to take market share from Cola-Cola's  (NYSE: KO  ) and PepsiCo's vast soda operations. The recent seasonal summer display by retail giant Wal-Mart Stores (NYSE: WMT  ) offers some hope for reinvigorated growth in the very important U.S. market.

For various reasons including an inventory overstock and a brutal winter that greatly damaged the whole retail sector, revenue for the Americas  plunged 28% to a meager $34.8 million for the quarter. For investors following SodaStream this news was right in line with expectations. For those who see the recent weakness as only a bump in the road typically encountered by high-growth stories, the recent mega roll-out by Wal-Mart provides ample reason to believe that the long-term potential has not disappeared.

Read the full article here.

Disclosure: Long SODA. Please read the disclaimer page for more details.


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