Even ScarJo can't prop up SodaStream stock
Stock drops to lowest price since November 2012, Bloomberg reports, continuing decline from last month.
SodaStream may have generated plenty of buzz, and controversy, by signing Scarlett Johansson as its global ambassador, but that hasn’t boosted its stock – which dropped 3.3 percent Monday, Bloomberg News reported.
The stock was valued at $35.34 on Monday, its lowest price since November 20, 2012, according to Bloomberg, which reported that the stock plunged a whopping 26 percent on Jan. 13 after the Israeli soda maker failed to meet the forecasted preliminary earnings for 2013. That was also its first day of trading after signing Johansson.
SodaStream found itself in the crosshairs of the global boycott, divestment and sanctions movement last month after it recruited Johansson to appear in its advertising campaign, including a spot to broadcast during the Super Bowl. The actress also stepped down as an ambassador for Oxfam, a U.K.-based human rights group, which said that her role as SodaStream's spokeswoman conflicted with her role for the charity.
Earlier this week, the company at the center of a firestorm over its West Bank manufacturing facility, said that the Israeli government has failed to deliver on the tens of millions of shekels of aid it promised to develop a giant factory inside Israel itself.
Daniel Birnbaum, CEO of the company that makes devices and syrup used to make fizzy drinks at home, said that, as a result, SodaStream was downsizing the planned expansion of its factory in the Lehavim industrial zone (in Israel’s southern Negev region).
Instead of investing 300 million shekels ($86 million) in Lehavim, in a facility that would employ upward of 2,000 people, SodaStream will spend just 119 million shekels ($33.8 million) and take on just another 500 employees, he said.
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