Sodastream Surges Higher; Company To Test PepsiCo-Branded Products

For months, investors and traders digested various rumors surrounding the possibility of Sodastream International Ltd SODA being acquired by a larger peer like PepsiCo, Inc. PEP.

On Friday morning, industry newsletter Beverage Digest hinted that Sodastream will begin testing co-branded products with Pepsi beginning in Florida. The two companies may collaborate on various in-home dispenser platforms that could rival Keurig Green Mountain's already announced Cold machine that will feature Coca-Cola branded products.

A Pepsi spokesperson confirmed to Bloomberg in an e-mail that it is currently working with Sodastream to test various products.

While no acquisition talks are underway between Pepsi and SodaStream, the move is a welcome development as shares of Sodastream spiked higher by more than 17 percent at $24.89. Shares of Pepsi were trading higher by 1 percent at the same time.