A comparison of SodaStream International Ltd. (Nasdaq: SODA) prices on its websites in Israel and the US show that prices for various home carbonated beverages makers and other products are 11-30% higher in Israel than in other countries.
The price of the SodaStream Genesis Delux is NIS 350 on the company's Israeli site and $100 (NIS 346) on its US site. The price of Metal Source and the Dynamo Deluxe are both NIS 500 on the Israeli site, 11% more than the $130 (NIS 449) price on the US site. The price of the Source is NIS 400 on the Israeli site, 16% more than the $100 (NIS 346) price on the US site. The price of the Revolution electric bar is NIS 800 on the Israeli site, 29% more than the $180 (NIS 622) price on the US site.
SodaStream not only discriminates against Israelis on prices for its machines, but also for its flavor concentrates. The company offers Israeli consumers fewer flavor concentrates than it offers foreign customers. The concentrates available at Israeli outlets, such as Rami Levy supermarkets and Home Center are limited, mainly cola, lemon, peach, and grapefruit. Even at the SodaStream stand at the Hever exhibition now underway in Tel Aviv has a ridiculously meagre selection of flavors compared with the US.
On the website of US retailer Bed, Bath & Beyond, SodaStream offers a much wider selection of concentrates than it offers on its own website.
SodaStream's Israeli website offers only root beer in its international flavors category. Its US site offers an endless variety, including caffeine-free cola, cola zero, cherry cola, cola cream, diet cola lime, crystal lemonade light, diet ginger ale.
It is odd that although SodaStream manufactures its products in Israel, its local website offers only a very limited and unrepresentative selection of the company's real advantage: its endless variety of flavors.
SodaStream said in response, "SodaStream's prices in Israel are the lowest in the world because production is in Israel. The price differences described in the article are because of tax differences in different countries (such as 18% VAT in Israel), and local campaigns. More than 30 flavors are sold Israel, from Israeli Sun to American Root Beer, with the greatest variety ever available in the country and which is constantly expanding. We continue to renew and refresh soda in Israel. We've launched six new flavors since the beginning of the year, and we'll launch eight more by the end of the year, including diet flavors and special syrups for children."
It adds, "SodaStream produces scores of flavors for millions of its customers worldwide, and adapted to diverse cultures and ethnic origins. The syrups are sold in various countries on the basis of their popularity and size of the population. Naturally, we keep in Israel flavors for which there is strong demand by our customers."
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2014
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