Dive Brief:
- SodaStream has taken its sparkling water offerings into a new segment with its debut announcement of Beer Bar, a new home beer system.
- Beer Bar combines sparkling water with a beer concentrate that enables consumers to "brew" crafted beer at home.
- Currently, Beer Bar is only being sold in select European markets, including at major Swiss retailers and on SodaStream's Germany-based online store. Other markets are expected to offer Beer Bar later this year and in 2017.
Dive Insight:
By making the switch to sparkling water, SodaStream shifted its product development and marketing to a burgeoning category that has revitalized sales and now puts the company in direct competition with the soda category it once belonged to. SodaStream has announced other alcohol-related products, including SodaStream Mix, a carbonated cocktail maker. But this is the first time SodaStream has taken on the beer industry as a new competitor.
Adding yet another beer option to the mix may be concerning for major beer manufacturers, which have already lost considerable sales and market share to craft beer over the past decade. But beer, and particularly craft beer, purists may not view a concentrate mixed with sparkling water as a viable replacement for the beer or craft beer they've long purchased.
SodaStream's stock soared 10.1% in premarket trading Tuesday following Monday's announcement.