SodaStream’s (NASDAQ: SODA ) 14% share price drop came from a new competitor and a public relations disaster.
SodaStream’s competition brews as controversy bubbles
SodaStream hired Avengers star Scarlett Johansson as the company’s first celebrity spokesperson and the actress starred in a cheeky “banned from airing” Superbowl commercial. However, the partnership took a complicated turn in the press after Johansson’s role as an ambassador for Oxfam — a global poverty and human rights charity — led to questions about SodaStream’s large factory in the controversial West Bank. Johansson stepped down from Oxfam and stayed with SodaStream.
Personal political beliefs aside, SodaStream surely didn’t want customers debating the Israeli-Palestinian conflict while brewing up carbonated canisters of cherry cola. Although the West Bank factory has existed for years, the Johansson deal pushed it further into the spotlight.