- SodaStream International Ltd. is accelerating its makeover to better distinguish its offerings from the competition, particularly the upcoming Kold machine from Keurig Green Mountain in partnership with Coca-Cola Co.
- That makeover includes rebranding as a sparkling water maker rather than an at-home soda machine, which was its original purpose and will soon be one of the main uses for the Kold. SodaStream is also entering another vertical, alcoholic beverages, with its upcoming machine, the SodaStream Mix.
- These efforts are geared towards reversing steep declines in revenue, including a 23% drop last quarter and 9% last year, which went back on seven consecutive years of double-digit growth. The company's U.S. retail presence is also on the decline, where its machines are now in 13,000 stores, down from 17,000 as retailers like Walmart reduce inventory.
In addition to reinventing itself as a sparkling water maker, SodaStream has two other main goals for the near future. The company plans to launch a home pick-up service for its used carbon-dioxide cylinders, and it plans to use its marketing budget in a big way by spending more than 70% of its $30 million U.S. marketing budget in the second half of the year. That coincides with the months leading up to and immediately following the release of the Keurig Kold in the fall.