Claim: Macy's removed SodaStream products from its stores because the products are made in disputed territory in Israel.
PROBABLY FALSE
Example: [Collected via e-mail, October 2014]
Bowing to pressure from leftwing pro-Palestinian activists, Macy's has decided to scrub Israeli-made SodaStream products from their shelves
Origins: In October 2014, a rumor began to circulate that retailer Macy's had "caved" to activist pressure and removed SodaStream products from its retail outlets and online storefront. Claims stated the removal of Sodastream products from Macy's stores came under pressure from activist groups who objected to the manufacture of the products in disputed territory in Israel.
The rumor's first major appearance came on
Jim Charnier, an analyst at Monness Crespi Hardt, said he had been expecting a poor quarter because he learned early in September that Macy's Inc. had stopped carrying SodaStream and saw other negative figures from the market. Yet he said that the company's estimated revenue of Macy's did not immediately return requests for comment.
SodaStream released only its revenue expectations of
While the quote in context seems to imply poor sales influenced Macy's decision to sever its relationship with SodaStream, it was not backed by any comment from Macy's or SodaStream about why products made by the latter company were being discontinued by the retailer.
SodaStream's CEO commented on tepid earnings reports and suggested in May 2014 a weak holiday sales season and excess inventory (not political sentiment) had adversely impacted the brand's revenues:
CEO Daniel Birnbaum blamed the 28% drop in U.S. sales on a weak holiday season, creating excess retailer inventory. SodaStream's guidance for the year wasn't as bad as the company sees revenue growth of 15% for the year, but just a 3% improvement in net income. Both projections were better than analyst estimates but are reflective of SodaStream's growing pains.
As of
If Macy's dropped SodaStream to placate
Last updated: 24 October 2014
Sources: |
Bowman, Jeremy. "Macy's and SodaStream Post Weak Sales as Dow Drops." The Motley Fool. 14 May 2014. Farrell, Maureen. "SodaStream Losing a Lot of Its Pop." The Wall Street Journal. 7 October 2014.