NORTHFIELD, Ill. (AP) — Kraft and SodaStream are teaming up to deliver carbonated summer and diet drinks, the companies said Thursday.
The food company will produce a version of its Country Time lemonade, as well as Crystal Light, the powdered-diet drink, for the for the soda system maker. Kraft will also make an "all-natural" lemonade drink for use with SodaStream's machines.
The news sent shares of SodaStream International Ltd. soaring more than 7 percent, or $2.74, to $40.49 before the market opened and industry watchers called it a clear win for the Israeli company.
The Kraft brand name will boost consumer awareness of SodaStream and also "provides an element of credibility to this relatively nascent stage, at-home soda-making trend in the U.S.," said Mitchell B. Pinheiro of Janney Capital Markets.
Financial terms were not disclosed.
The products are expected to be available for retail sale during the second quarter of 2012, the companies said.