SodaStream International (NASDAQ: SODA), the odd anti-Coke, anti-Pepsi company, had its advertising for the Super Bowl kicked off TV coverage of the event. The publicity from the decision may bring SodaStream as much exposure as the advertising would have, since the news of the decision was carried in almost every large news medium in the United States. It may not matter, SodaStream is in trouble.
According to USA Today:
The “Reject Bowl” for Super Bowl ads has kicked off with about a week to go before the Big Game.
Fox has rejected this year’s SodaStream Super Bowl commercial — roughly one year after CBS, the Super Bowl broadcast network for the last game, took a similar action against SodaStream’s spot for that game.
Daniel Birnbaum, CEO of SodaStream, bitterly complained to USA TODAY late Friday that Fox rejected the Super Bowl commercial “because they’re afraid of Coke and Pepsi.”
This year’s rejected ad for the make-your-own soft drink company — which stars red-hot actress Scarlett Johansson sensually sipping her home-made soda — got nixed because it ends with her saying, “Sorry, Coke and Pepsi.
The company recently signed Johansson as its spokesperson.
It is impossible to imagine what the concerns of PepsiCo Inc. (NYSE: PEP) or Coca-Cola Co. (NYSE: KO) might be. SodaStream’s entire revenue was $562 million last year. Its net income was only $42 million. Coke’s revenue is nearly $50 billion, and Pepsi’s more than $65 billion
All the media exposure and advertising in the world may not be enough to reverse the company’s awful fortunes. Its shares have fallen nearly 35% in the past six months, while the S&P 500 is 8% higher. Johansson and the Super Bowl may get SodaStream visibility for a while, but once the controversy passes, it still has to deal with the fact that Wall Street has little or no confidence in its future.