Sodastream International Ltd (NASDAQ:SODA) has had a rough year, with shares trending downward since January. Today the company’s stock is on a tear, however, after a trade publication reported that it is running a small test selling PepsiCo, Inc. (NYSE:PEP)’s beverages.
Sodastream to test Pepsi brands
A regulatory filing with the Securities and Exchange Commission verifies the report from Beverage Digest. In the filing, Sodastream said it has entered into an agreement with Pepsi for a “small-scale, limited time test” to see how the beverage maker’s brands sell on Sodastream’s beverage making system.
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The company said it expects to conduct the limited test “later this year.” In addition, Sodastream said it continues to explore “multiple relationships with other leading beverage brands.”
Sodastream emphasizes the word “limited”
In the regulatory filing, Sodastream emphasized that the test on Pepsi’s brands is only limited at this time and that there are currently no plans to expand its partnership with the soda maker. The company also said it will not comment on any speculations or rumors regarding how the partnership is going.
Today’s filing does not indicate which of Pepsi’s brands will be released on Sodastream’s home beverage making system. In addition to the Pepsi brand, PepsiCo also sells Sierra Mist and Mountain Dew.
Unconfirmed details about Sodastream’s deal with Pepsi
The companies will reportedly be conducting the test in Tampa and Orlando, Fla. According to Beverage Digest, its source said the test products will be sold at some of Sodastream’s major retail customers, including Wal-Mart Stores, Inc. (NYSE:WMT) and Bed Bath & Beyond Inc. (NASDAQ:BBBY).
The test will last only ten weeks and will include some “naturally sweetened” options that currently being sold in retail locations, like “Sierra Mist Homemade” and “Pepsi Homemade.” Beverage Digest gave the following list of flavors, according to Business Insider: Sierra Mist Homemade Cranberry, Pepsi Homemade Wild Cherry, Sierra Mist Homemade Peach and Pepsi Homemade Vanilla.
The trade publication also reported that Pepsi is partnering with “various in-home dispenser” companies and in fact has a partnership with Bevyz, another manufacturer, in Europe. A Pepsi spokesperson confirmed to Business Insider that they are also working with other manufacturers of in-home beverage dispensers.
There have been speculations about a partnership between Pepsi and Sodastream for some time. Earlier this year, it was rumored that Pepsi might one day be interested in acquiring Sodastream, but nothing ever materialized.