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Keurig's Coke Deal Could Be Good for SodaStream

http://www.fool.com/investing/general/2014/02/06/keurigs-coke-deal-could-be-good-for-sodastream.aspx

Rick Munarriz
February 6, 2014

SodaStream (NASDAQ: SODA) is getting slammed.

The company behind the namesake machine that makes carbonated beverages hit a new 52-week low on Monday, and then came news Wednesday night that Coca-Cola (NYSE: KO) had agreed to provide brand flavors for Green Mountain Coffee Roasters(NASDAQ: GMCR) forthcoming Keurig Cold platform.

SodaStream may finally get some legit competition, and that's naturally spooking the market. 

However, this could be a positive development. The market doesn't necessarily see it that way, but let's go over a few ways in which this could be just what SodaStream needs.

  • A competitor typically introduces pricing pressure, but this event should actually firm up SodaStream's pricing. After all, do you think Coca-Cola is going to offer Keurig Cold flavors