Sodastream shares are spiking in morning trade on Friday after a report in trade publication Beverage Digest said that Sodastream will test some Pepsi-branded products for its at-home soda brewing system.

In late morning trade, Sodastream shares were up as much as 20%.

The news was first reported by Bloomberg, which also reported that a Pepsi spokesperson confirmed it is testing products in Sodastream’s home-brewing system.

Following the news, Pepsi shares were up about 0.8%.

In its report, Beverage Digest, citing a source, said the Sodastream test using Pepsi products will involve “major SodaStream customers Wal-Mart and Bed Bath & Beyond” in some Florida markets.

The test, which will be a 10-week test selling some Pepsi-branded products, will involve “naturally sweetened” brands not sold at retail: “Pepsi Homemade” and “Sierra Mist Homemade,” Beverage Digest said.

Beverage Digest reports that the actual flavours will be: Pepsi Homemade, Pepsi Homemade Vanilla, Pepsi Homemade Wild Cherry, Sierra Mist Homemade, Sierra Mist Homemade Peach, and Sierra Mist Homemade Cranberry.

Beverage Digest’s report also said that Pepsi is looking at “various in-home dispenser opportunities and has partnered with another manufacturer of in-home dispensers, Bevyz, in Europe.”

Bevyz is set to launch machines in the US under a partnership with Cuisinart.

Sodastream and Pepsi have long been the subject of market and industry rumours, including speculation that Pepsi might one day want to buy Sodastream, but to date nothing has come of that speculation.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.