- Between layoffs and double-digit revenue losses, neither Keurig Green Moutain nor SodaStream International had much good to report in their latest earnings.
- Keurig announced a cost-cutting program when combined with shedding about 330 jobs, or 5% of its workforce, would save the company about $300 million over three years. The cuts follow a 5% drop in quarterly sales, driven by a 26% drop in brewer and accessory sales, as the Keurig 2.0 did not take off as hoped. Even pod sales were down 1% year over year after their meteoric rise, which has sparked many environmental concerns.
- Once posting double-digit growth and being sought after by the world's second-largest soda company, SodaStream announced a 29% decrease in second-quarter revenue, including a 44% drop in the Americas. Its numbers follow the same pattern since reporting a 25% decrease in revenue for Q4 2014 and 23% decline in Q1 2015.
These weak earnings reports put more pressure than ever on Keurig's and SodaStream's new technology and rebranding efforts. Keurig's at-home cold drinks machine, the Kold, is set to launch as early as next month, but with its price tag, some experts are skeptical that this will be the lifesaver Keurig needs.
SodaStream is repositioning itself as a sparkling water machine and releasing exotic flavor options. The company is also working on the SodaStream Mix, which will make alcoholic beverages. Both changes in machinery hope to open up new verticals for SodaStream as soda sales in general continue to decline.