Soda Stream (NASDAQ:SODA) is a very popular company that makes home carbonation product. The machine carbonates water by adding carbon dioxide from a pressure cylinder in order to make soda water. The company also sells over 100 flavored syrups to cater to consumer tastes and preferences. In 1998, the company merged with Soda Club and shifted focus to healthier drinks. The idea worked for a while, but according to latest news, it’s been a rough year for Soda Stream (NASDAQ:SODA). In October 2014, Soda Stream (NASDAQ:SODA) revealed that it hasn’t been a good year for the company, with sales stagnant and revenues dropping. This has resulted in a significant drop in the company’s share. Other negative impacts also took place due to company’s support of Israel in the latest Middle East conflict, which led to people rejecting the brand in many geographical regions. But a new ray of hope emerged on Friday for investors, when PepsiCo (NYSE:PEP) announced its plan to take Soda Stream (NASDAQ:SODA) for a spin. In other words, it’s going to test its flavors on Soda Stream (NASDAQ:SODA) machine. If all goes according to plan, customers will soon be able to produce Pepsi (NYSE:PEP) beverages at home.

This project will only be available in certain geographical locations and only for a limited time. The Pepsi (NYSE:PEP) flavors that will be available are Pepsi (NYSE:PEP) Homemade, Vanilla, Wild Cherry, Sierra Mist Homemade Cranberry, Sierra Mist Homemade and Sierra Mist Homemade Peach. The emphasis is on Homemade, as Pepsi (NYSE:PEP) plans to keep the bottler and retail distributions off this project.

This experiment might work in favor of Soda Stream (NASDAQ:SODA), as it has been well received in the European market, but has faced trouble in other areas. Attaching  Pepsi (NYSE:PEP) brand name to it, might help it recover even if it means going a bit further away from its objective of healthy drinks and introducing frizzy drinks. At least, this will encourage people to invest in the machine and boast up sales in those regions.

This move is expected to work in Pepsi (NYSE:PEP)’s favor as it did for Coca cola (NYSE:KO) when it joined hands with Keurig Green Mountain (NASDAQ:GMCR) in the beginning of the year. Pepsi (NYSE:PEP) decided to take on this merger after seeing Coca cola (NYSE:KO)’s success into the home carbonation market. It did take up a similar deal with Malta Bevyz in spring time but that product is yet to enter the US market.

As consumers are becoming more and more health conscious; soda companies have suffered in general. Pepsi (NYSE:PEP) is hoping that use of good marketing might be able to bring consumers in once again by offering them a chance to produce naturally sweetened Coca Cola (NYSE:KO) and Pepsi (NYSE:PEP) drinks on their own. How successful this effort will be for Soda Stream (NASDAQ:SODA) and PepsiCo (NYSE:PEP) will be revealed in time. At this stage, the companies are more focused on giving the consumers, an opportunity to enjoy homemade frizzy drinks.

In North America, the growth of carbonated soft drinks (CSD) is declining as people are switching to healthier options, such as the ready to drink teas or Gatorade. Pepsi Co (NYSE: PEP)’s CSDs marked almost 15% sales in America.  Similar trends were observed in Pepsi Co (NYSE: PEP)’s Q3 figures, as CSD volume fell by 1.5% in North America. However, the volume for Gatorade and Lipton RTD teas increased.

Pepsi Co. (NYSE: PEP) has managed to attract growth by improvising its profitability, by strategic packaging and cost-cutting.

• Pepsi Co (NYSE: PEP)’s smaller sized packs have been quite popular amongst consumers, despite the fact that they carry the same calories per unit as the regular ones do. The only difference is that smaller more expensive cans and bottles have less sugar. The sales of mini bottles and cans have ended up at 2% annual rise in the profits generated by the company in North America. Pepsi Co. (NYSE: PEP) declared that the 12 ounce bottle sells at more than 100% premium with the 12-ounce can.
• Pepsi Co. (NYSE: PEP) has taken initiatives to do productivity savings. The company aims to gather $1 billion in 2014 savings. In 2013, the company managed to save $900 million and targets to save another $5 billion in the next 5 years, by optimizing global manufacturing operations and simplifying the systems within the organization to improve efficiency.

Pepsi Co. (NYSE: PEP) had been expecting two-thirds of growth in revenue to emerge from developing countries by the beginning of 2014, and so far, these expectation have been met. The organic sales in emerging countries saw a quarterly growth of 8%. In India and Egypt, the company’s revenues grew by double-digit percentages, and in Chine and Turkey, revenue grew by single-digit percentages. The growth in Russia and Brazil however is the talk of the town. The two countries are important markets for Pepsi Co. (NYSE: PEP) as they make about 10% of the overall sales. The high commodity cost and the value of U.S dollar were the hurdles for Pepsi Co (NYSE: PEP)’s market in Russia but what went in the company’s favour is the fact that most of the products that the company sells are manufactured in Russia itself and a lot of the raw material are purchased locally. Due to this Pepsi Co. (NYSE: PEP) didn’t have to go through any hassle as far as import bans are concerned. The inflation in the country caused the price of the beverage and snacks to increase, but the consumption was not affected because of the price change.

But at home ground, the results weren’t very overwhelming, even though the operating cost increased by 4% for lower commodities, productivity and pricing due to operating cost inflation. This was a slight setback for the company.

Still, the vision set for adjusted yearly EPS for 2015 is expected to increase to 9% from the current 8%. As a result, estimated EPS is expected to go up to $4.76 which is much better than the $4.57 consensus estimate. But the company still has to bear the negative effect of the 3% currency translation on 2014 EPS growth.

Organic revenue growth along with productivity saving is expected to be $1 billion. The company has revealed its reservations about commodity price inflation for 2014.

The company’s CEO has reportedly stated a 3% increase in organic revenue, resulting in effective net pricing of strong price/pack revenue management. Keeping in mind these results, the company’s outlook for the next year has strengthened, hence increasing the year’s core constant currency EPS growth objective to nine percent.

The EPS was revised at the end of the second quarter already for the year but is increasing again towards the end of the third quarter. This has been a surprise for speculators and analysts, as the company achieved its 8 percent mark in the second quarter.

Pepsi (NYSE: PEP) aims to provide an $8.7 billion to shareholders in the year 2014 through $3.7 billion in dividends and $5 billion in shares. The shares have risen by 2% in premarket trading, hitting a 95 dollar mark, as compared to its 52 week range of $77.01 till $94.21. But sources like Reuters believe Pepsi (NYSE: PEP)’s consensus analyst price target to hit $98.60. As time passes, only then can we speculate Pepsi (NYSE: PEP)’s progress and arrive at a firm conclusion if its objectives will be achieved this year.

The Coca Cola Company (NYSE:KO) has already been selling its Coca-Cola life, stevia based green beverage, all around the world in Chile, Argentina, Britain and Mexico. The product made its U.S debut in August but only in the southern states and in November the Coca Cola Company (NYSE:KO) life will go nationwide. The Coca Cola Company (NYSE:KO) life contains 36 percent less calories than regular Coke and has the same formula as PepsiCo Inc (NYSE:PEP)’s green drink.

Consumers are currently split between the Coca Cola Company (NYSE:KO)’s life and Pepsi. PepsiCo Inc (NYSE:PEP) has made several attempts of introducing sweetened cola to the market, back in 2008 when it brought PepsiCo Inc (NYSE:PEP) Natural that was also billed as PepsiCo Inc (NYSE:PEP) Raw. It didn’t make much of an impact and was taken off the market in 2010. PepsiCo Inc (NYSE:PEP) then came out with PepsiCo Inc (NYSE:PEP) Next which had 60 percent less calories and was sweetened artificially through sucralose.

The Coca Cola Company (NYSE:KO) has had its share of changes, which were market strategies such as the Coke classic fiasco. But comparatively Coke has remained more consistent while PepsiCo Inc (NYSE:PEP) has always struggles with its low-calorie beverages. It is true that The Coca Cola Company (NYSE:KO) has been around for a century now but PepsiCo Inc (NYSE:PEP)’s marketing department and creative department should at least see to it that they don’t always remain the followers of The Coca Cola Company (NYSE:KO) as the new drink has similar branding as the Coca Cola beverage.

Carbonated beverages have been slowly going out of trend because of health awareness among people and heart ailments being the reported cause of these beverages. In a study it was revealed that banning soda from food stamps would prevent 141,000 kids from obesity nationwide. In such circumstances it will be a challenge for both The Coca Cola Company (NYSE:KO) and PepsiCo Inc (NYSE:PEP) to find a market for itself with their trademark drinks hence they are venturing into the Green market.

However, if Pepsi wants to make a strong impact in its consumers then it needs to create its own breed of marketing and colour combinations which the customers can associate with. Being a replica of Coke Life just increases the probability of another failure on their hands. However, the only thing which they have done differently is going through a different channel. Pepsi Lite was launched on Wednesday and is only available for sale on Amazon.

The competitor of Coca Cola (NYSE:KO), PepsiCo Inc. (NYSE:PEP), is also struggling hard to capture the market share through its carbonated drinks. The shares of PepsiCo Inc. (NYSE:PEP) have gained 12 percent over the same time period of 5 years.

The reduction in sales cannot be blamed at Coca-Cola (NYSE:KO) as it is trying hard to draw the target audience towards its products. The consumers, on the other hand, have changed their beverages from sodas to healthier sports and energy drinks. This shift in consumers’ preference has shrunken the margins and caused the sales to drop down.

Coca-Cola (NYSE:KO) has a price to earnings ratio of 22 and its stocks value is at $42. The company’s P/E is 3 points lower than the industry average but analysts have given it a strong ‘buy’ rating for its long-term margins look promising. Moreover, the market research firms are of the opinion that the stocks will trade at or near $46 by the end of the year 2014 as the company has focused on diversifying its product’s chain.

For the first quarter, around 80 percent of the company’s sales and profits were made in foreign countries and around 55 percent of that profit came from developing and emerging markets, which include Africa and India: the sales were increased by 6 percent and 8 percent respectively in both these countries.

The growth in the emerging markets is filling the gap in sales caused by the developed markets. Coca-Cola (NYSE:KO) sales, in the region of North America, dropped by 1 percent during the first quarter of the year 2014. The company is trying to improve the sales in that region with the help of promotional shifts and product mixes, as it has recently launched the Coca-Cola Life. Coca-Cola Life is healthier in a way that it is a mixture of sugar and stevia, a plant based sweetener. The product is getting much popularity in the areas of Chile and Argentina where consumers have become more health-conscious. The company is now planning to launch Coca-Cola Life in other developed markets as well.

Coca-Cola (NYSE:KO) has remained successful in seizing its share of the market gain through the sales of soft drinks. The company’s gross profit margin is at 61.40 percent whereas its net profit margin is at 18.32 percent, way more than the industry average. The company’s stocks will gain volume in the near future, and the revenue is predicted to increase by many folds as the company is planning to launch Coca-Cola Life in other markets as well. Coca-Cola (NYSE:KO) has also sealed a deal with Keurig Green Mountain Inc. (NASDAQ:GMCR), making its future even more secure.