Pretoria, South Africa - Since Sodastream’s public listing on the NASDAQ in November last year (NASDAQ: SODA), the South African division of the company has increased its confidence in the local expansion and growth that comes with the backing of global investors. Opening for public trading on November 3, 2010, the home-carbonation company’s share price has since risen by more than 100 percent. Originally listed at 20 US dollars, the share price is currently hovering around the 43 US dollar mark (about R306) following a very favourable response from global investors.
CAPE TOWN, South Africa - Since Sodastream’s public listing on the NASDAQ in November last year (NASDAQ: SODA), the South African division of the company has increased its confidence in the local expansion and growth that comes with the backing of global investors. Opening for public trading on November 3, 2010, the home-carbonation company’s share price has since risen by more than 100 percent. Originally listed at 20 US dollars, the share price is currently hovering around the 43 US dollar mark (about R306) following a very favourable response from global investors.
During the initial price offering (IPO) in New York, the company raised over 100 million US dollars, selling approximately 5.4 million shares. CEO Daniel Birnbaum rang the closing bell at NASDAQ on the opening day of trading to mark this significant event. Birnbaum noted that, despite cautionary
tales about initial public offerings, Sodastream managed to price at the top of its range.
“According to the figures, only 18 percent of IPOs achieve the top of the price range. The success of the IPO is a real testament to the business model and the way it’s been received,” Birnbaum said.
Guy Rogers, marketing manager of Sodastream South Africa, is confident that the decision by the company to list on the NASDAQ, and the subsequent increase in its share prices, will bring expansion and development to the South African division of the business.
“With the backing of international investors, we can now tap into a more active global innovation pipeline, take global successes and implement them at a local level, and benefit from all the efficiencies that come from being part of a global player. We will be able to offer existing and new Sodastream users a more exciting, more relevant and healthier range of products while contributing to the positive growth of an already highly successful brand,” said Rogers.
The business’ stake in the South African market is extensive. Sodastream has an active user base in excess of 300,000 households and is available in over 90 percent of retail food outlets including Pick ‘n Pay Supermarkets and Hypermarkets, Shoprite, Checkers and Checkers Hypers, Spar, Game and Makro.
Rogers concluded, “Despite the very tough trading conditions experienced over 2009 and 2010, by concentrating on growing our trade support, we have seen increased consumer off take at store level. With this success, coupled with an active global product pipeline, we expect to continue growing our household penetration over the next three years. We aim to offer sustained innovation in the form of improved technology and better, healthier drink options.”
Rogers comments that the brand has ambitious plans to develop the household name even further. This includes raising the availability and visibility of products in retail outlets outside of the food sector such as top-end department stores, kitchenware outlets, appliance specialists and ‘green’ stores. The company’s vision is to offer consumers a smarter, environmentally-friendly alternative to store bought ready-to-drink beverages, which is in line with their eco-conscious ethos.
For more information visit www.sodastream.co.za. To find out where your nearest Sodastream retailer is, contact 012 345-9220.
About Sodastream
Sodastream manufactures home beverage carbonation systems, which enable consumers to easily transform ordinary tap water instantly into carbonated soft drinks and sparkling water. Soda makers offer a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness, and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles. Our products are available at more than 40,000 retail stores in 41 countries around the world. For more information on SodaStream, please visit the Company's website: www.sodastream.com.
