Earlier this year, it was reported that Coca-Cola took a 10% stake in rival Kuerig Green Mountain Coffee.
The Israeli business publication Globes said that Starbucks is in “advanced talks” to buy a 10% stake in SodaStream that would value the company at $1.1 billion. That represents a 30% premium on SodaStream’s market cap of $844 million as of the market’s close last Tuesday.
Spokespeople from both Starbucks and SodaStream declined to comment on “rumors or speculation.” Investors have noted that SodaStream’s shares have temporarily rallied in the past in response to reports about a deal in the works with a beverage maker. Despite the recent bounces, SodaStream’s stock is still down over 7% this year.
CNN reported SodaStream’s double-digit percentages last week after a different Israeli newspaper said the company was meeting with large soft drink makers. The newspaper said possible buyers include PepsiCo, Dr. Pepper Snapple Group and Starbucks.
Starbucks left the Israeli market about a decade ago after Israeli customers indicated their preference for purchasing their coffee from other companies.
Last year there were reports that PepsiCo was considering buying SodaStream outright for more than $2 billion.
Coca-Cola’s decision to take a 10% stake in SodaStream rival Keurig Green Mountain Coffee in February has shaken up the beverage industry and sparked expectations of follow-up deals.
Globes said that an announcement of the purchase of SodaStream by Starbucks is expected “soon.” The company value is $1.1 billion.
In recent months SodaStream has been dominating the headlines following the signing of actress Scarlett Johansson as a spokeswoman for the company and the controversy that swirled around its factory in the West Bank. As a result, Johansson resigned as a global ambassador for Oxfam over her position with the company, which employs Jewish and Palestinian workers at its West Bank facility.
Last week, television talk show host Ellen Degeneres gave SodaStream yet another boost of publicity on her show dedicated to Earth Day on April 22. Everyone in the audience went home with a Wood Starter SodaStream and $200 Crate & Barrel gift card to stock up on SodaStream products.
SodaStream is an “active green product,” which means consumers are “actively reducing their CO2 footprint every time they make soda or sparkling water at home instead of buying it from the store,” according to a report in the Jewish Press.
SodaStream transforms ordinary tap water into better-for-you soda and cocktail mixers in less than 30 seconds, all without electricity. The average American family will save over 2,000 bottles and cans every year by switching to SodaStream.