Food Business News - March 24, 2015 - (Page 16)

SodaStream going after Keurig The company is expanding beyond soft drinks to restore growth after another difficult year ingredients custom blends innovation national distribution B.C. Williams Bakery Service BCW Food Products 1-800-527-4104 16 FOODBUSINESS NEWS ® AIRPORT CITY, ISRAEL - Just as Keurig Green Mountain has strategically expanded beyond coffee, SodaStream International is broadening its beverage capabilities to include more than soft drinks. The maker of home beverage systems said it is working on a machine that produces single-serve and multi-serve cold sparkling, flavored and hot beverages, including coffee. "This Wi-Fi-enabled Internet-of-things device will produce any beverage you can think of at a touch of a screen, providing great value, a responsible environmental footprint, an empowering consumer experience, as the consumer will control carbonation level, flavor intensity and temperature, all with a beautiful design representing kitchen jewelry," said Daniel Birnbaum, chief executive officer, during a Feb. 25 earnings call with financial analysts. "We will not provide a launch date, but we will present a working model to selected customers next week at the International Housewares Exhibition in Chicago." The innovation represents a clear move beyond soda, as the company urgently reinvents itself amid slipping sales, particularly in the United States. For the year ended Dec. 31, 2014, SodaStream had net income of $27,944,000, equal to $1.33 per share on the common stock, down 34% from $42,027,000, or $2.02 per share, the year before. Revenue fell 9.1% to $511,774,000 from $562,723,000 for fiscal 2013. Net income for the fourth quarter was $12,295,000, equal to 59c per share, which compared with a net loss of $15,649,000 for the comparable quarter. The company reported total revenue for the quarter of $126,526,000, down 25% from $168,110,000 for the fourth quarter of fiscal 2013. During the quarter, SodaStream recorded non-cash, pre-tax charges of $15,649,000 as part of restructuring and a growth plan announced in October. Sales of the company's beverage makers declined 32% for the quarter, driven by softer consumer demand and reduced promotional activity. "Q4 was particularly challenging for us in the U.S., where revenue was down 55% to $30 million, which represents 24% of our global business," Mr. Birnbaum said. "On a sell-in basis, U.S. sparkling water maker units declined 72%, to $192,000, flavor units declined 64%, to $1.5 million, and gas refills were down 3%, to $1.1 million." SodaStream's growth plan hinges on consumer acceptance of the company's new positioning as a health-oriented brand. The company is reintroducing March 24, 2015

Table of Contents for the Digital Edition of Food Business News - March 24, 2015

Food Business News - March 24, 2015
Inside General Mills’ new approach to innovation
Nestle pursuing nutrition-based treatment for autism
Dairy Business News - Inclusion innovation: More than a chip or a chunk
Table of Contents
Web Contents
Editorial - Flexibility is needed to meet new opportunities
Kind raising the bar with innovation
McDonald’s to unlock power of local regions
Lancaster Colony acquires flatbread maker
SodaStream going after Keurig
Six forces shaping natural, organic product development
Stevia slow to penetrate confectionery market
C-Suite insight: C.P.G. at a crossroads
Kroger’s Simple Truth sales hit $1.2 billion for year
Private equity firm buys American Beverage Co.
Washington - Dietary Guidelines coming into focus
Market Insight - A `normal’ year for U.S. crops?
Health and Wellness - Shining a health halo over protein
Meat industry criticizes D.G.A.C. recommendation
Ingredient Innovations - Number of proposed pho alternatives widens
Still no timetable for final GRAS rule
Company Profile - Mondelez gaining momentum
New Food Products
Natural Products Expo West/Engredea
Ingredient Market Trends - Millers forecast soft red winter wheat crop at 381 million bus
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - March 24, 2015