Sodastream began the year with a bang: it signed up the Hollywood actress Scarlett Johansson as its first “global ambassador” and vowed to take on rivals Pepsi and Coca-Cola in a Super Bowl commercial watched by millions.
Since then, the Israeli company’s stock has lost half its market value in New York, plunging from $55 a share in January to $21, amid falling sales and mounting calls for a boycott over its presence in the occupied West Bank and with investor enthusiasm fizzling out.
In an effort to stop the rot, the company, whose soda makers allow consumers to carbonate their drinks, unveiled a restructuring this week. It announced plans to leave its West Bank factory and shift towards healthier, water-based products with fewer calories.
Its chief executive, Daniel Birnbaum, conceded that Sodastream’s performance has been disappointing after three consecutive quarters of declining sales and speculation that it would put itself up for sale. Now Mr Birnbaum says he wants to put things right for shareholders by making water “exciting”.
He told The Independent: “We made a mistake spending millions of dollars in a Super Bowl commercial to get Scarlett Johansson to say ‘Sorry, Pepsi and Coke’, because people don’t want to drink Coca-Cola; they’re looking for ways to drink more water. That was our mistake and we’re sorry.”… see more
Tags: business, Scarlett Johansson, Sodastream
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