The SodaStream (NASDAQ:SODA) might want to reconsider about their potential competitors as it was unaware of any prominent competitive challenge from the Keurig (NASDAQ:GMCR) Green Mountain. The multinational giant Keurig (NASDAQ:GMCR) Green Mountain also made an announcement on last Thursday that it will soon aquire the Bevyz malta based company’s home parent company. Bevyz according to the analysts probably still isn’t discovered yet by the potential customers.

The Bevyz has less than 1200 followers on its Facebook page. The company currently employs only 50 employees and hasn’t even put a single product in the market yet however according to the management’s announcements a product will be launched soon. However it should be taken as Bevyz, a hot and cold juice and beverage producing multi drink machine, is advertised but is not available for buying. The product has been demoed and will be available in the market shortly with the help of company’s newly aligned partners: Pepsico and Cuisinart.

The multibillionaire Pepsico first made a deal with the SodaStream (NASDAQ:SODA) and then moved to support Bevyz however its competitor CocaCola took advantage and moved in to support the Keurig (NASDAQ:GMCR) Cold. This now poses a serious dilemma to Pepsico international, whether it should still support and back an organization that is now partially owned by one of its greatest rivals? Or should it throw more funds behind the SodaStream (NASDAQ:SODA)?

Or should it move away from the entire Soda market? This all is leading to a new Cola war. The Bevyz currently doesn’t have much equity. Kuerig on the other hand pays 85% stake and $220million to the investors. So the question that arises is that whether the Pepsico will proceed with Belvyz or not? Keurig (NASDAQ:GMCR) Cold is working on hard on the products appearance to make them more appealing to the customers. They have inducted portion cups like K cup for longer carbonation duration.

The company doesn’t focus on the fizz or the flavor which the SodaStream (NASDAQ:SODA) has championed but rather on the consistency in their value delivery system. Its an important opportunity for the Keurig (NASDAQ:GMCR) Cold to make its mark in the market and become a pop star. The Keurig (NASDAQ:GMCR) Cold doesn’t like taking dictations from the customers as the SodaStar does regarding the syrup doses and Carbonation levels.

Because of the decline in the Soda industry the SodaStream (NASDAQ:SODA) currently suffers a double digit decline in its sales however things are expected to get better after its expanding relation with the Pepsico. However the main parties of the Cola war are Pepsico and CocaCola, both SodaStream (NASDAQ:SODA) and Keurig (NASDAQ:GMCR) Cold are moving according to the moves set by these leading giants.

The SodaStream (NASDAQ:SODA) might secretly be happy about the Keurig (NASDAQ:GMCR)’s acquisition of Bevyz as it might buy it some time to redesign and launch new market strategies. This will also help SodaStream (NASDAQ:SODA) to focus all its energies on a single competitor which is its single greatest challenger, The Keurig (NASDAQ:GMCR) Green Mountain.

Talking about the prices of coffee, the price of green coffee, during the recent year, has increased by more than 55 percent.

Keurig Green Mountain (NASDAQ:GMCR) recently announced that many of its rivals have already raised their prices due to the increased costs of inputs. The company further commented that it had taken this necessary decision after much review and analysis.

The ratings teams of TheStreet gave the stocks of the company a score of B with a rating of ‘buy’. The team, when asked about their decision, said that Keurig Green Mountain (NASDAQ:GMCR) has a number of positive pointers that indicate to a better performance in the upcoming quarters. The team further said that the company has remarkable revenue growth, a solid position in the market, reasonable level of debts, increasing profit margins and good operational cash flow. Moreover, the EPS of the company is also quite impressive. The team said that although the company has not-so-great ROE (returns on equity) but the strengths outweigh the only weakness.

Some other Highlights from the Report:

• The revenue growth of Keurig Green Mountain (NASDAQ:GMCR) has surpassed the industry average of 3 percent. Moreover, an increase of 5.7 percent can be seen when the revenue figures are compared with the figures of the same quarter a year back. The increase in the revenues has reached the bottom line as the EPS is on a rise.
• Coming to the debt to equity ratio of the company, Keurig Green Mountain (NASDAQ:GMCR), currently, has a very low ratio: 0.08. This ratio of the company is far below the industry average, which means that the management of the company is strong. Moreover, the company has 2.32 as its quick ratio, signaling that the company is well capable of covering its short-term cash needs.
• As far as the EPS of the company is concerned, Keurig Green Mountain (NASDAQ:GMCR) has successfully increased the earnings by 23.7 percent when compared with the numbers of the same quarter last year. The company has constantly reported positive earnings for the past 2 years. Last year, Keurig Green Mountain (NASDAQ:GMCR) reported earnings of $3.16; however, this year, the analysts are of the opinion that earnings will go up to $3.80.
• Coming to the net income growth of the company, the numbers have exceeded not only the average of foods industry but also that of the S&P 500. During the most recent quarter, the net income of the company increased by 33.4 percent and reached to $155.15 million.
• The gross profit margin of the company is currently at 49.91 percent, which is quite strong. Moreover, the net profit margin of the company is also above the average of the industry; it is at 15.17 percent.

Under the terms of the deal, Coke will hand over its energy drink business, which includes brands such as Full Throttle, NOS, Mother, Play, Power Play, Relentless, and Burn, to Monster. In turn, Monster will transfer its business not associated with energy drinks, such as Peace Tea, Hansen’s Natural Sodas, Hansen’s Juice Products, and Hubert’s Lemonade, to Coke.

Analysts and industry experts have long expected Monster to be a target for a takeover, and identified Coke as the best candidate to buyout the energy drink company. Sales in the energy drink space have been a shining beacon in the market for beverages, even though their sales growth has flattened a bit in the last few quarters.

This announcement rides on the back of Coke’s struggles in the traditional soda market. The soda sales growth all over the globe is on the decline for the third year in a row now. Coke’s worldwide soda volumes dropped in the first quarter of 2014 for the first time since 1999. However, carbonated beverages still contribute to more than 70 percent of its global sales volumes.

Under the deal, Coke will also place two directors on Monster’s executive board. Monster will also make Coke its preferred global distribution partner, and Monster will now be Coke’s exclusive energy drink partner.

The deal is expected to close sometime in late 2o14 or early 2015.s

In after hours trading after the deal was announced, stock prices of Monster leapt 21 percent to $86.78. Coke shares rose by 1.4 percent to $40.74.

The deal with Monster is the second big investment this year. Earlier in 2014, the soda company purchased a 10 percent stake in Keurig Green Mountain Inc (NASDAQ: GMCR). Coke had paid roughly $1.25 billion for the specialty coffeemaker company. In the deal, Coke also agreed to a 10 year partnership where it will sell its drinks through an at-home beverage system that is currently being developed by Keurig Green Mountain. This product is expected to hit retail stores sometime next year.

The deal with Keurig Green Mountain provides Coke with a vast amount of market power in the coffee and tea space. Keurig Green Mountain is the maker of the Keurig single serve coffee machine. The coffee and tea space has been growing at a faster rate than soda in the past few years, mainly due to the fact that Americans are changing their preferences to caffine and warm beverages.

Coke later disclosed that they will increase their stake in Keurig Green Mountain to 16 percent.