Kraft Foods, SodaStream in Co-Branding Deal

Crystal Light, Country Time first of its brands licensed for home carbonated beverage system

NORTHFIELD, Ill. & AIRPORT CITY, Israel -- Kraft Foods Inc. and SodaStream International Ltd. have forged a strategic partnership for the manufacturing, marketing, distribution and sale of Kraft Foods-branded flavors for use with the SodaStream soda making system. The terms of the deal were not disclosed.

This will be the first time that Kraft Foods flavors will be available specifically for use in a carbonated beverage. The initial Kraft Foods brands to participate will be several varieties of Crystal Light, a leading women's diet beverage, and Country Time, a leading lemonade brand. One of the new carbonated choices will include an "All-Natural" lemonade.

The companies plan to have the products available at retail during the second quarter of 2012.

"The carbonated market is an exciting segment for us," said Doug Weekes, vice president of beverages for Kraft Foods. "We're delighted to be working with SodaStream to help bring these terrific brands to consumers who prefer their beverages carbonated. It's a perfect marriage of our iconic brands and SodaStream's breakthrough technology."

Daniel Birnbaum, CEO of Airport City, Israel-based SodaStream, said, "We are excited to welcome these delicious Kraft drink mixes into our SodaStream portfolio. Adding our sparkle to these popular flavors should attract a new audience to both Kraft and SodaStream, and increase awareness of the soda making category."

SodaStream manufactures beverage carbonation systems that enable consumers to change tap water into carbonated soft drinks and sparkling water. The company offers "a highly differentiated and innovative solution to consumers of bottled and canned carbonated soft drinks and sparkling water. Our products are environmentally friendly, cost effective, promote health and wellness and are customizable and fun to use. In addition, our products offer convenience by eliminating the need to carry bottles home from the supermarket, to store bottles at home or to regularly dispose of empty bottles," it said. Its products are available at more than 50,000 retail stores in 42 countries.

Northfield, Ill.-based Kraft Foods, which markets biscuits, confectionery, beverages, cheese, grocery products and convenient meals in approximately 170 countries, had 2010 revenue of $49.2 billion; 12 of the company's brands--Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia, Tang and Trident--generate revenue of more than $1 billion annually.

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