SodaStream International Ltd. Key Product Bombs; Keurig Stock Soars

Big trouble at SodaStream International Ltd. SODA Tuesday drove up the shares of a competitor in the marketplace for home dispensers of carbonated beverages. Keurig Green Mountain Inc. GMCR, best known for its coffee-brewing machines that rely on branded single-serving packets of coffee, in February signed a 10-year agreement with Coca-Cola Co. KO to develop at-home soda machines. Coca-Cola holds a 16 percent stake in Keurig and is its largest shareholder. Although the Keurig soda project has yet to launch, Keurig shares jumped more than 5 percent after SodaStream warned of weak third-quarter results because the concept of home-based dispensers appeared to be flopping. "While we were successful over the last few years in establishing a solid base of repeat users in the U.S., we have not succeeded in attracting new consumers to our home carbonation system at the rate we believe should be achieved," SodaStream Chief Executive Daniel Birnbaum said. Keurig plans to launch its broadly similar Keurig cold beverage system which will exclusively feature Coca-Cola-branded single serve, pod-based cold beverages. At the same time, SodaStream plans "a strategic shift" for its brand towards health & wellness market in the U.S. "We believe this message will resonate more strongly with consumers," Birnbaum said. SodaStream fell more than 20 percent to $21.81 a share; Keurig changed hands recently at $139.41 a share, up $6.38