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SodaStream International Ltd.: Shaking up the US soda market

Published: July 2013 · Publisher: MarketLine
SodaStream International Ltd. (SodaStream) offers home carbonation systems that can turn tap water into carbonated drinks, challenging traditional soft drink distribution.
Report Type Case Studies
Language English
Format Electronic (PDF)
Pages22
Frequency Updated Annually
Availability Will be emailed within 1 business day
Reference No. 0109-6706
Price € 369,00
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Introduction

SodaStream International Ltd. (SodaStream) offers home carbonation systems that can turn tap water into carbonated drinks, challenging traditional soft drink distribution. As health and environmental concerns over pre-packaged soft drinks have grown, so too has the company, and it has recently been reported as a potential acquisition target for The Coca-Cola Company and PepsiCo, Inc..

Features and benefits

* The publisher's Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
* Fact-based and presented in an accessible style, they explain the rationale of commercial decisions and illustrate wider market and economic trends.

Highlights

The global carbonated soft drinks market has enjoyed a prolonged period of growth, and continued to grow during the recession. Notably, the United States accounts for a large proportion of the global total, but the market has been in decline for the past few years.
The company’s recent strategy is centrally focused on the health and environmental benefits of its soda makers. It has also entered into a number of partnerships with other companies in order to increase the appeal of its supplementary consumable products and has begun an attempt at premiumization to promote the long-term appeal of its soda makers.
In the wake of its recent expansion efforts, SodaStream has seen its top line grow rapidly, and its US growth has actually outpaced its overall growth, outperforming the whole carbonated soft drinks market by some margin.

Your key questions answered

* Why has SodaStream focused its attention on the US in recent years?
* What marketing strategies has the company used to grow its top line?
* How successful has the company been in leveraging its business model to boost its profitability in recent years?
* What has the company done to change its image following its relaunch, and how successful has it been in doing so?
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OVERVIEW
Catalyst
Summary
THE SODA MARKET IS VAST AND GROWING
The global carbonated soft drinks market is growing
The US offers huge opportunity
The soda industry is often the subject of bad press
SODASTREAM AS A COMPANY
SodaStream has a long history, and a previous UK focus
The product was a fun gadget
SodaStream operates a razor/razor blade business model
THE SODASTREAM RELAUNCH
Early relaunch
A new focus on environmentalism and health
SodaStream as an “Earth Friendly” product
The banned Super Bowl commercial
Health consciousness
Strategic partnerships
SodaStream has used existing brand power to boost its own brand
Partnerships with designers and Samsung have premiumized the brand
THE COMPANY HAS ENJOYED SUBSTANTIAL FINANCIAL SUCCESS
SodaStream’s revenue has trebled since 2008
The Americas now accounts for over a third of SodaStream’s sales
Recurring income continues to rise
Profitability is increasing
CONCLUSIONS
SodaStream has seen tremendous growth, but is yet to fulfill its potential
APPENDIX
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Copyright © FriedlNet. You may share using our tools Please don't cut content from FriedlNet and redistribute by email or post to the web.