SodaStream Spikes Amid Reported Keurig Kold Discontinuation
Shares of Sodastream International Ltd (NASDAQ: SODA), the maker of a home beverage carbonation system, spiked higher on heavy volume Tuesday afternoon and hit an intra-day high of $22.36.
Sodastream's gains were attributed to a series of Tweets by Beverage Digest, a news website that covers the beverage industry. According to the Tweets, Sodastream's largest competitor, Keurig, is discontinuing its own home carbonation system, Kold.
Keurig's Kold device marked the company's entrance into the cold beverage business as it historically focused on single serve hot beverages. Keurig was acquired by JAB Holding for $92 per share earlier this year. JAB Holding is the owner of various premium brands within the coffee market.
Because of the discontinuation of Keurig Kold, the company will offer refunds to customers that own the drinkmaker.
The Tweets appears to be consistent with a report from Vermont-based WPTZ News that Keurig (which is also based in Vermont) notified the state's government it will lay off around 100 workers as part of its decision to end the Kold system.
Shares of Sodastream were trading higher by 0.23 percent at $21.77 with more than 2.5 hours of trading remaining on Tuesday.
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