MarketLine Blog

Posts about Soft Drinks

Tesco: Fallout from profit overstating continues

MarketLine

Yesterday (September 22), the UK’s largest retailer Tesco had to make the embarrassing and damaging admission that its first half profits had been overstated by some £250m (approximately $390m). Consequently, profits for the period are now expected to be around £850m (approximately $1,328.8m) rather than the originally-reported £1.1bn (approximately $1.7bn); quite a difference. The fallout has been catastrophic and has prompted some serious questions that have led to staff suspensions, a delay in publishing its first half results, and the intervention of legal and accounting firms. Following the shock announcement,… Read more

SodaStream: Why it could have been a great buy for Coca-Cola or Pepsi

MarketLine

Although the rumors of a potential acquisition of SodaStream International Ltd. (SodaStream) by PepsiCo, Inc. (Pepsi) have recently been denied, the company remains a threat to both Pepsi and fellow soda incumbent The Coca-Cola Company (Coca-Cola). Crucially, it still has the potential to further disrupt the soda market through its challenge to traditional distribution models and enhancing consumer choice. However, the company’s razor/razorblade business model remains at odds with its competitors’, and would not have played well into either Pepsi or Coca-Cola’s long-term strategy. SodaStream’s focus on the environmentally friendly… Read more