Why is Coca-Cola gunning for SodaStream?

SodaStream has always been on the eco-friendly end of its niche

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Coca-Cola (NYSE: KO) apparently doesn't like to see its trash getting trashed.

The undisputed cola king is getting litigious about a SodaStream (Nasdaq: SODA) promotional exhibit in South Africa.

In order to show the damage that soda cans and bottles do as waste, SodaStream has set up several displays it calls "the cage" across the world. SodaStream collects thousands of discarded cans and bottles from dump sites and landfills, uses them to fill up a huge cage, and then makes its point: "1 Family. 5 Years. 10,657 bottles and cans."

SodaStream's message is effective. Its home-based soda maker means an end to cans and bottles that often don't go recycled. The landing page on its website has a perpetually updated counter, showing that its system has spared drinkers of sparkling water and soft drinks from going through nearly 1.8 billion bottles and cans.

Despite having several of these cage displays around the world, the company is getting a cease-and-desist letter from Coca-Cola tied specifically to a display at a South African airport. Coke's letter argues that the display is infringing on the beverage giant's trademark rights, opening the door for possible legal action.

Obviously this is the kind of attention that SodaStream was craving all along, setting the Israeli company up for the perfect response.

"If they claim to have rights to their garbage, then they should truly own their garbage, and clean it up," SodaStream CEO Dan Birnbaum says, according to Forbes. "We find it incredulous that Coke is now reclaiming ownership of the billions of bottles and cans that litter the planet with their trademarks. In that case, they should be sued in the World Court for all of the damage their garbage is causing."

Investors have mistakenly lumped SodaStream with Green Mountain Coffee Roasters (Nasdaq: GMCR) as two companies with simple appliances that make beverages at home that consumers typically have to buy elsewhere.

However, while Green Mountain is often razzed for the environmental damage of its K-Cup portion packs — something that the Keurig parent is working on improving — SodaStream has always been on the eco-friendly end of its niche.

It remains to be seen what Coca-Cola stands to gain here. Pointing attention to its trademarks in public garbage displays is really only helping SodaStream make its point even clearer — and louder to a larger audience.

If you're in the market for some high yielding ASX shares, look no further than our "Secure Your Future with 3 Rock-Solid Dividend Stocks" report. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

 More reading

The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

A version of this article, written by Rick Aristotle Munarriz, originally appeared on fool.com

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »