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..
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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?