A fizzy stock has gone flat today.
Shares of SodaStream
SodaStream is often mentioned in the same circles as Green Mountain Coffee Roasters
Both companies also have somewhat similar razor-and-blades models. Green Mountain sells its Keurig brewers nearly at cost, as SodaStream does with its namesake starter kits. The companies make their money on the consumables that need to be perpetually replenished: Keurig owners buy K-Cup coffee packs, and SodaStream owners exchange carbonators and snap-up soda syrups.
That's pretty much where the similarities end.
Why should a slowdown in sales at Green Mountain have any bearing on what SodaStream is up to?
If anything, a problem at Green Mountain may be an opportunity for SodaStream.
The company noted during its call that a third of the shortfall in K-Cup sales stemmed from an unexpected decline in hot cocoa and cider sales. This is normally a negligible part of Green Mountain's business, but an unseasonably warm February and March ate into orders for the cold-weather beverages.
That's bad for Green Mountain, but shouldn't warmer weather be good for refreshing and cool sodas?
Smoothie chain operator Jamba
Green Mountain's problem is obviously not SodaStream's problem. We'll find out more soon. SodaStream reports next Wednesday.
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The Motley Fool owns shares of SodaStream International and Starbucks. Motley Fool newsletter services have recommended buying shares of Green Mountain Coffee Roasters, SodaStream International, and Starbucks. Motley Fool newsletter services have recommended writing covered calls on Starbucks. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for SodaStream and Jamba. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.