Amid reports that it’s considering a possible acquisition of beverage company SodaStream, Pepsi today confirmed that it has indeed bought SodaStream. The company’s machines allow users to whip up carbonated beverages at home. Some also feature Bluetooth connectivity and can also be controlled with a smartphone app. Beverage giant Pepsi has now decided to acquire the company for $3.2 billion.
The deal comes at a time for Pepsi when consumers are gradually turning away from sugary options to more healthy and sustainable beverages that they can make at home. The acquisition has been approved unanimously by Pepsi’s shareholders as the company looks to diversify its offerings and expand into more markets.
Pepsi now has a new product line through which it can reach customers in their homes instead of through stores. With more and more people shopping for groceries online, this will enable Pepsi to retain consumers’ attention despite their shifting preferences. “We get to play in a business — home beverages — where we don’t play,” Pepsi CFO Hugh Johnston pointed out to CNBC.
This deal is a step up for SodaStream as well. It’s currently distributing its products in over 80,000 individual stores across 45 countries with its biggest markets being the United States, Canada, France, and Germany. Pepsi’s global footprint will put SodaStream’s products on the map, so to speak.
Pepsi expects this deal to be closed by January 2019.
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