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SodaStream


SodaStream is a of home systems that enable consumers to infuse plain water with to create sparkling water and add flavor syrups to produce soft drinks, reducing reliance on pre-bottled beverages. The company traces its origins to 1903, when it was established in the as a of gin distillers W&A Gilbey, initially marketing siphon-based soda makers before evolving into modern countertop machines. In 1998, firm Soda-Club acquired the brand, shifting its operational base to , where it is headquartered in .
Under Israeli management, SodaStream expanded globally, emphasizing by promoting reusable CO2 cylinders and bottles that have reportedly prevented over five billion single-use bottles from entering landfills by 2022. The company achieved significant commercial success, culminating in its $3.2 billion acquisition by in 2018, which integrated it into a portfolio focused on at-home beverage . However, SodaStream faced controversy due to its factory in the settlement of Mishor Adumim, which employed around 500 Palestinian workers alongside Israelis; pressure from the (BDS) movement prompted the 2015 relocation to the desert, resulting in layoffs that disproportionately affected those Palestinian employees. This episode highlighted tensions between economic integration efforts in contested territories and activist campaigns aimed at Israeli-linked businesses, with the factory move failing to fully appease BDS advocates.

Product

Technology and Functionality


SodaStream sparkling water makers carbonate plain tap water by injecting carbon dioxide (CO2) gas from pressurized cylinders into sealed bottles. The process involves filling a proprietary, BPA-free plastic bottle with cold, still water, securing it within the machine's nozzle, and activating a button or lever that releases measured bursts of CO2 under high pressure to dissolve the gas into the liquid, creating effervescence. Users control carbonation intensity by the number of activations, typically offering light, medium, or strong fizz levels, with colder water absorbing more CO2 for optimal results.
The CO2 cylinders, central to the system's functionality, contain food-grade CO2 certified for human consumption and tested for contaminants in each batch. Each standard cylinder holds approximately 60 liters of equivalent and is constructed from high-grade and aluminum for durability, featuring a that releases excess pressure to prevent rupture. Cylinders are exchangeable at authorized points, where empty ones are refilled with verified CO2 to maintain safety standards, avoiding risks associated with third-party refills. Most models operate manually without electricity, relying on mechanical pressure release, though electric variants like the series automate the process with a single button press for consistent . The technology mimics soda siphons but adapts it for use, emphasizing simplicity, with bottles designed to withstand the pressure without leaking or exploding when used correctly. features, including over-pressure relief and compatibility-specific nozzles, minimize hazards such as leaks or over-.

Models and Syrups

SodaStream produces a variety of sparkling makers designed for home use, utilizing CO2 cylinders to carbonate in reusable bottles. Models are divided into and electric variants, with compatibility for both quick-connect and screw-in CO2 cylinders across the lineup. models rely on user-pumped for , while electric models offer automated buttons for consistent fizz levels.
ModelOperationKey FeaturesPrice (USD)
TerraClassic design for basic $89.99
ArtStylish $54.99
E-TerraElectricOne-touch customizable fizz$139.99
E-DuoElectricAutomatic fizzing; compatible with and BPA-free plastic bottles$179.99
EnsoElectricIntegrated design emphasizing form and function$149.99
SodaStream's syrups and drink mixes, typically in 440 ml bottles, flavor to create sodas with approximately 50% less than equivalent store-bought varieties. Offerings span classic sodas, options, zero- variants, and licensed partnerships, enabling replication of commercial beverages at home. Classic flavors include and . selections encompass , caffeine-free , , Dr. Pete, and Xtreme . Zero- options feature pink grapefruit, lemonade, strawberry-watermelon, and cranberry-raspberry. Partnership mixes, priced slightly higher, cover and wild cherry, multiple MTN DEW variants (original, zero , cherry, and zero ), lemon-lime zero , and . These concentrates are added post-carbonation, with dosage instructions yielding multiple servings per bottle.

History

Founding and Early Expansion

SodaStream originated as a home carbonation system invented in 1903 by Guy Hugh Gilbey, a British entrepreneur associated with the W&A Gilbey distillery, in , . The initial device was designed to carbonate water using CO2 cylinders, targeting affluent households seeking an alternative to commercial sodas. Early models emphasized simplicity and domestic use, marking an early innovation in beverage preparation technology. By 1920, Gilbey's firm expanded the product line with flavored concentrates, introducing options such as cherry and to enhance versatility and appeal. This development allowed users to create a variety of carbonated drinks at home, broadening the system's utility beyond plain soda water. Adoption remained limited to upper-class consumers through the mid-20th century, with more accessible home versions emerging in the , coinciding with post-war and rising interest in convenient kitchen appliances. The marked a pivotal phase of mass-market expansion, as SodaStream introduced affordable models that propelled its popularity, particularly in the . Sales surged during this decade, supported by effective marketing with slogans like "For fizz that puts the pop into parties," making it a staple in households through the . Initial international outreach included distribution in and starting in the late , where it gained traction amid growing demand for home beverage solutions, though the brand's core market remained .

Corporate Acquisitions and Restructuring

In 2007, Fortissimo Capital Fund acquired a in Soda-Club Group, the parent entity of SodaStream, rescuing the company from near-bankruptcy through a private-equity reorganization that stabilized operations and paved the way for its (IPO) on the in 2010. Facing declining sales, particularly a 41% drop in North American revenue during the third quarter of 2014, SodaStream announced a plan that included closing its Mishor Adumim factory in the , laying off approximately 500 Palestinian workers, and shifting production to facilities within Israel's pre-1967 borders to reduce costs and address pressures. The move, completed by mid-2015, was described by CEO Birnbaum as a "purely " decision amid broader challenges, though it drew from boycott advocates; Birnbaum countered that such campaigns were antisemitic and counterproductive for Palestinian employment. Subsequent layoffs in 2016 further reduced headcount as the company consolidated operations. On August 20, 2018, agreed to acquire all outstanding shares of SodaStream International Ltd. for approximately $3.2 billion, or $144 per share, representing a 10% premium over the prior closing price and integrating SodaStream as a wholly-owned to bolster 's portfolio in home and sustainable beverages. The transaction closed on December 5, 2018, with committing to maintain SodaStream's headquarters for at least 15 years. Post-acquisition, SodaStream underwent a 2022 , including a redesigned , color palette, and product tiers, to align with 's emphasis on sparkling water and health-oriented trends while retaining operational independence. In 2023, the company continued workforce adjustments, announcing layoffs of 70-80 employees as part of ongoing cost-management efforts amid a multi-year restructuring trend.

IPO, Growth, and PepsiCo Acquisition

SodaStream International Ltd. completed its on the Global Select Market on November 8, 2010, pricing 5,447,368 ordinary shares at $20 each after underwriters exercised an over-allotment option, raising approximately $109 million. The shares opened trading under the ticker and rose more than 50% within the first two days, reflecting strong initial investor interest in the company's home carbonation technology and international expansion potential. Post-IPO, SodaStream achieved robust financial growth driven by increased of machines, CO2 cylinders, and flavor syrups, particularly in and . Earnings per share expanded 57% in 2012 amid aggressive . By the second quarter of 2018, quarterly revenue hit a record $171.5 million, up 31% year-over-year, with climbing 82% to $26.1 million, fueled primarily by recurring CO2 refill . The stock price recovered from a 2016 low near $13 per share to surpass $140 by mid-2018, yielding over 84% gains that year alone and underscoring sustained demand for at-home beverage customization amid shifting consumer preferences away from bottled sodas. PepsiCo announced its acquisition of SodaStream on August 20, 2018, agreeing to purchase all outstanding shares for $144 in cash per share, valuing the company at approximately $3.2 billion—a 32% premium to the 30-day volume-weighted average price and an 11% premium to the prior closing price. The deal, aimed at bolstering PepsiCo's portfolio in healthier, low-sugar sparkling beverages, closed on December 5, 2018, after regulatory approvals, with SodaStream delisted from Nasdaq thereafter.

Operations

Production Facilities

SodaStream's primary manufacturing operations are centered at its main facility in the Industrial Zone, located in southern near the city of in the region. This site, which produces the majority of the company's products including cylinders and machines, was established following the relocation of operations from the Mishor Adumim industrial zone in the , completed in October 2015. The move addressed logistical and access challenges, including permit restrictions affecting Palestinian workers, though the facility continues to employ a diverse workforce of approximately 2,000 as of 2022. In , SodaStream operates its largest regional production plant in , , which opened in November 2021 to centralize manufacturing and distribution for European markets. This facility focuses on assembly and packaging of machines and related components, leveraging proximity to key consumer bases to reduce shipping times and costs. Following PepsiCo's 2018 acquisition, production has emphasized efficiency, with the Israeli site handling core and cylinder filling while select components globally. Both facilities incorporate sustainability measures, such as the Israeli plant's transition to sources including from northern Israel's turbines, operational as of August 2023. Capacity expansions at supported post-acquisition growth, though workforce adjustments occurred in 2022 amid demand shifts, resulting in 120 layoffs primarily at that site.

Global Sales and Market Performance

SodaStream achieved annual of $543.4 million in , reflecting a 14.1% increase from the previous year, driven primarily by sales of CO2 cylinders and machines in over retail locations worldwide. Quarterly reached a record $171.5 million in the second quarter of , up 31% year-over-year, with rising 82% to $26.1 million, fueled by recurring and in . These figures positioned SodaStream as a leader in the home segment prior to its acquisition by for $3.2 billion in December . Under PepsiCo ownership, SodaStream's performance integrated into the parent's beverage portfolio, but specific standalone revenue disclosures diminished. The business faced headwinds, culminating in an $862 million charge in 2023, which contributed to reduced operating profit in PepsiCo's relevant segments that year. This write-down reflected challenges such as slower-than-expected growth amid shifting consumer preferences and competitive pressures in at-home beverage appliances. In 2024, PepsiCo's operating profit benefited from the absence of this prior-year , though overall segment results did not isolate SodaStream contributions. Online sales via sodastream.com approximated $86 million in 2024, indicating modest traction within a broader footprint. SodaStream maintains a dominant position in the global soda maker market, estimated at $870.6 million in and projected to grow at a 7.5% CAGR through 2030, propelled by demand for customizable, low-sugar sparkling beverages. accounted for approximately 38% of its regional market distribution, followed by at 32%, with showing accelerated growth potential due to rising health-conscious consumption. Despite post-acquisition hurdles, SodaStream's recurring from CO2 refills and syrups supports sustained market performance in a segment favoring over single-use plastics.

Marketing

Advertising Campaigns

SodaStream's advertising campaigns originated in the during the 1970s, featuring the slogan "Get busy with the fizzy!" and endorsements from comedian in its first national in 1979. These early efforts emphasized the convenience of home and gained cultural traction, with the brand leveraging humor and domestic appeal. By the , commercials continued this lighthearted tone, promoting the product as a fun alternative to store-bought sodas. In 2010, SodaStream relaunched in the UK with a national TV campaign invoking 1970s nostalgia, marking its first such effort in nearly two decades and aiming to recapture market share through retro imagery. The company's expansion into broader international markets, particularly the United States, accelerated with high-profile Super Bowl advertisements starting in 2013. That year's debut spot, "The SodaStream Effect," highlighted environmental benefits by depicting delivery trucks for rival brands idling unused, though an initial version was rejected by CBS for referencing Coca-Cola and Pepsi logos, prompting a revised airing during the game's fourth quarter. Subsequent Super Bowl campaigns featured celebrity spokespersons to boost visibility. In 2014, starred in an ad where she personally endorsed the product while quenching her thirst, positioning SodaStream as a healthier, customizable alternative to mass-produced beverages. The 2020 commercial reunited with aspiring astronaut to explore "water on Mars," tying the product's carbonation process to themes of and . Beyond spots, SodaStream employed diverse celebrity partnerships in global TV and digital campaigns. In 2017 and 2019, actors from —including , , and —alongside from , appeared in whimsical narratives promoting flavor varieties and waste reduction. featured in 2020-2021 holiday ads, such as "The Small Things," emphasizing single-use plastic savings through home sparkling water production. Other endorsements included fitness trainer in 2018 spots highlighting personal health benefits. These campaigns consistently focused on environmental advantages, customization, and cost savings, aligning with SodaStream's core product attributes.

Partnerships and Endorsements

SodaStream has employed celebrity endorsements to enhance brand visibility. In January 2014, actress was appointed as the company's first global , featuring in promotional campaigns that emphasized environmental benefits and convenience, including a advertisement aired on February 2, 2014, which highlighted reducing usage. Johansson's involvement drew attention amid debates over the company's operations, though she maintained her support for the brand's sustainability claims. Fitness expert entered a partnership with SodaStream to promote its products through infomercials and endorsements focused on health-conscious beverage alternatives. Rapper collaborated with the brand in promotional content, aligning with SodaStream's efforts to appeal to diverse consumer segments via . Additional music artists, including , Pixie Lott, and Steve Aoki, participated in international campaigns around 2016 to boost global awareness. Following its acquisition by in 2018, SodaStream formed key brand partnerships to integrate complementary flavors. On October 8, 2020, it launched bubly drops, the first North American collaboration post-acquisition, enabling users to carbonate water with bubly's fruit flavors using SodaStream machines and targeting at-home customization trends. Similar tie-ins with PepsiCo brands like and expanded syrup offerings, leveraging the parent company's portfolio for broader market reach. These partnerships supported SodaStream's growth in functional and flavored beverage segments.

Environmental Impact

Reduction of Single-Use Plastics

SodaStream's systems allow consumers to produce sparkling beverages at home using reusable bottles, which replace the single-use bottles employed in commercial sparkling production and distribution. These reusable bottles, typically made from BPA-free material, are designed for repeated use—up to 1,000 cycles in some models—and are dishwasher-safe, minimizing the need for disposable . The company estimates that its global user base prevented 5 billion single-use bottles from entering and streams in alone, based on sales data and assumed substitution rates for bottled sparkling water consumption. In the 2017-2018 period, SodaStream reported that users avoided over 6.3 billion bottles and aluminum cans from environmental , calculated via similar metrics of per-unit displacement. SodaStream pledged to eliminate up to 67 billion single-use bottles by the end of , projecting cumulative avoidance through expanded product adoption and reusable bottle lifecycles, where each SodaStream bottle is said to displace approximately 1,282 single-use equivalents over its service life. These figures derive from internal modeling of beverage substitution, though independent lifecycle analyses of total impacts—including machine and CO2 —remain limited, with some critiques questioning net reductions when factoring device durability and ancillary plastics.

Sustainability Initiatives

SodaStream incorporates up to 25% recycled plastic materials in the production of plastic parts for its new-generation sparkling water makers starting in 2022. The company maintains a closed-loop system for CO2 cylinders, partnering with entities like Terrapure Environmental in regions such as to intercept and reuse cylinders collected from programs, thereby minimizing disposal and emissions associated with new production. These efforts align with SodaStream's broader goal of reducing its operational , with independent assessments indicating that using SodaStream products can lower emissions by up to 87% compared to producing and transporting PET-bottled sparkling water, based on a 2013 study. In April 2025, SodaStream launched the Sustainability Concierge service, offering select consumers personalized consultations to identify and replace single-use plastics in household routines with reusable alternatives, as part of a targeted campaign to foster plastic-free homes. Complementing this, the global "Replace" initiative encourages habit substitution toward sustainable practices, integrating educational outreach on environmental impacts like the low 9% global rate. These programs build on earlier commitments, such as 2021 sustainability goals aimed at further curbing waste and emissions through improvements. SodaStream's initiatives are integrated into PepsiCo's overarching framework post-2018 acquisition, emphasizing scalable reductions in and emissions, though specific SodaStream metrics remain primarily self-reported via annual environmental campaigns. While these efforts promote principles, their long-term efficacy depends on consumer adoption and verification beyond company estimates.

Social and Economic Impact

Employment and Workforce Integration

SodaStream's workforce has historically included a significant number of Palestinian employees from the , with the company employing up to 500 such workers at its Mishor Adumim , where they received -level wages and benefits alongside colleagues. This integration model was presented by former CEO Birnbaum as a form of "economic ," fostering interaction between and Palestinian workers in a shared production environment. In response to (BDS) campaigns targeting its operations, SodaStream relocated its primary factory to the Idan Hanegev in Israel's region in September 2015, resulting in the layoffs of approximately 470 Palestinian workers who were unable to obtain work permits or commute across the Green Line. Initially, 74 experienced Palestinian workers were transferred to the new site via company buses, but they were laid off in March 2016 after Israeli authorities denied permit renewals, a decision Birnbaum attributed to bureaucratic obstacles rather than concerns, criticizing it for undermining stability and providing fodder for BDS narratives. Post-relocation, SodaStream expanded hiring to include diverse Israeli demographics, creating hundreds of positions filled by , , Israeli Arabs, , and others from the area, with the factory employing 1,400 workers by 2016, one-third of whom were Arabs from nearby . This shift emphasized local workforce , including underemployed women, while maintaining a multicultural environment where , Christians, , and collaborated without overt ethnic divisions. As of 2023, SodaStream maintained a global workforce of approximately 3,800 employees across its operations in 48 countries, with the facilities continuing to prioritize diverse hiring from regional communities, including and Bedouins, despite occasional layoffs driven by operational adjustments. The company's approach has been credited with promoting practical coexistence through , though external pressures like and permit restrictions have periodically disrupted Palestinian inclusion.

Contributions to Regional Economies

SodaStream's primary manufacturing facility, relocated to the Idan Industrial Zone in near the desert in late 2015, has bolstered economic activity in southern , a region prioritized for industrial development to counterbalance central economic concentration. The move, which consolidated production from the prior site, received a 25-million-shekel (approximately $7 million) grant from the government to support and operations in this underdeveloped area. By 2022, SodaStream employed about 2,000 workers in from its global total of 3,800, with the plant integrating Jewish and Arab laborers, including from nearby communities like , thereby injecting wages, local procurement, and skills training into the regional labor market. Prior to the 2015 relocation, the company's Ma'ale Adumim factory in the West Bank industrial zone employed around 1,300 workers, including 950 Palestinian and Israeli Arabs alongside 350 Israeli Jews, generating direct income for Palestinian families through salaries paid without regard to ethnicity or citizenship. These operations contributed to local economic circulation via payroll taxes and supplier spending, though the site's closure led to the layoff of approximately 500 Palestinian workers in 2016 amid permit restrictions and cost efficiencies. Overall, SodaStream's Israeli footprint has supported export-oriented manufacturing, with annual sales exceeding $700 million by 2019, much of it derived from production in these facilities, aiding Israel's high-tech and consumer goods sectors.

Controversies

West Bank Operations and BDS Boycotts

SodaStream operated its primary manufacturing facility in the Mishor Adumim industrial zone, located within the Ma'ale Adumim settlement area in the West Bank, from the early 2000s until its closure in 2015. The factory employed up to 500 Palestinian workers from nearby areas such as Ramallah and Jericho, comprising roughly half of the workforce alongside Israeli employees, providing wages often reported as higher than local averages and fostering cross-cultural interactions described by company executives as an "island of peace." Palestinian employees received benefits including transportation and training, though some reports from advocacy groups alleged poor working conditions like extended shifts. The (BDS) movement, a Palestinian-led campaign launched in 2005, targeted SodaStream starting around 2013, citing the factory's location in an industrial zone as complicity in the occupation of . activists urged consumers, retailers, and investors to shun the company, leading to high-profile actions such as protests against celebrity endorser and divestments by entities including Norwegian pension funds and some U.S. universities. The campaign framed the factory as normalizing Israeli control over disputed lands, despite its employment of , which viewed as insufficient to offset territorial claims. On October 29, 2014, SodaStream announced the closure of the Mishor Adumim facility and relocation to in southern , citing rising operational costs and security concerns rather than direct pressure, though the timing coincided with intensified boycotts. The move, completed in October 2015, resulted in the layoffs of approximately 470 Palestinian workers, with subsequent permit restrictions from authorities preventing most from transferring to the new site; by February 2016, the remaining 75 were dismissed. CEO Daniel Birnbaum testified before the U.S. in July 2015 that the campaign inflicted direct economic harm on Palestinian families by eliminating these jobs, labeling the boycotts "antisemitic" and counterproductive to peace efforts. BDS declared the closure a victory, arguing it pressured to dismantle infrastructure, but continued targeting SodaStream post-relocation, deeming the company still complicit due to its ownership and operations. Independent analyses noted the paradox: while aimed to isolate economically, the factory's operations had provided tangible employment benefits to , and its closure demonstrably worsened their livelihoods without altering broader territorial dynamics. Sources aligned with , such as advocacy reports, emphasize legal and ethical objections to the site's location, whereas company records and neutral reporting highlight the employment's practical contributions amid ongoing permit and security barriers.

Palestinian Worker Relations and Layoffs

SodaStream employed approximately 500 Palestinian workers from the at its Mishor Adumim factory, representing a significant portion of its roughly 1,200 total workforce prior to the facility's closure. These positions offered wages reported to be two to three times higher than comparable jobs in Palestinian-controlled areas, along with benefits such as company-provided transportation and , which CEO Birnbaum highlighted as supporting extended family networks—estimating that 74 such workers sustained approximately 740 dependents. Birnbaum described the factory as a site of cross-cultural interaction, with Israeli and Palestinian employees sharing workspaces and, on occasions like , participating in joint meals to foster goodwill. Relations were not without friction, including security protocols at the settlement-area that involved checks and restrictions, which some Palestinian workers cited as sources of tension. In July 2014, the company dismissed 60 Palestinian employees following protests over inadequate provisions for breaking the fast during night shifts, where workers received what they described as insufficient or unsuitable food despite fasting all day. SodaStream maintained that it treated all staff respectfully and provided special meals for Muslim workers, but the incident underscored disparities in conditions and pay, with Palestinian wages averaging lower than those of counterparts despite claims of equal treatment. Birnbaum later testified to that SodaStream had been the largest private employer of Palestinians in recent years, arguing that such integrated workplaces demonstrated economic incentives for over . The factory's relocation from Mishor Adumim to inside Israel's pre-1967 borders, announced in October 2014 and completed by October 2015, resulted in the layoffs of all 500 Palestinian workers, as the move was necessitated by expansion constraints and political pressures including campaigns. To mitigate losses, SodaStream secured temporary work permits for 74 skilled Palestinian employees to commute to the new site via company buses, a two-hour journey each way, but these permits expired without renewal on February 29, 2016, leading to their termination. Birnbaum attributed the final layoffs to "idiotic " from civil authorities rather than , criticizing the policy for ignoring the economic benefits to Palestinian families and regional stability. He contended that the movement, by targeting the operations, directly contributed to the job losses it purported to protest, calling it counterproductive and, in his view, rooted in antisemitic motives that prioritized ideology over Palestinian livelihoods. Post-relocation, SodaStream hired hundreds of workers, including Bedouins and others from southern , but did not reinstate Palestinians en masse due to permit restrictions.

Accusations of Bias and CEO Statements

In September 2015, SodaStream CEO Daniel Birnbaum accused the (BDS) movement of , describing its campaign against the company as "pointless" and harmful to the workers it purported to support. Birnbaum argued that if BDS advocates truly prioritized welfare, they would have encouraged SodaStream's operations in the rather than pressuring its closure, noting that the factory employed approximately 500 alongside workers in an integrated environment. Birnbaum further characterized BDS tactics as "propaganda... politics... hate... [and] anti-Semitism," asserting that the movement prioritized ideological opposition to over economic opportunities for , who earned wages at the factory exceeding the Israeli minimum and surpassing typical salaries. In a July 2015 congressional testimony before the U.S. House Oversight and Government Reform Committee, he detailed how campaigns distorted legal interpretations of Israeli court rulings to justify boycotts, framing them as a form of that ignored the factory's role in fostering cross-community employment. The movement and affiliated activists have leveled accusations of inherent political bias against SodaStream, claiming its operations profited from and normalized activity on occupied land, thereby entrenching what they term an system. These critics, including groups like the Palestinian National Committee, alleged labor exploitation, such as paying Palestinian workers lower wages than Israelis and subjecting them to discriminatory conditions, though Birnbaum and factory employees refuted this, citing equal pay structures verified by independent audits. Such claims often appear in advocacy publications with explicit anti-Israel agendas, which have been critiqued for selectively omitting data on wage premiums— at the facility reportedly earned 2-3 times the average—and for conflating with political endorsement of settlements. Birnbaum later clarified in 2016 that Israeli bureaucratic restrictions, rather than pressure alone, precipitated the and associated layoffs of Palestinian staff, though he acknowledged the as a "constant nuisance" diverting resources without materially impacting sales. By 2017, he reflected that scrutiny inadvertently boosted brand visibility, turning adversity into a advantage through from endorsements and counter-campaigns. These statements underscore Birnbaum's emphasis on pragmatic decisions amid geopolitical tensions, prioritizing verifiable outcomes over partisan narratives.

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