SodaStream Launches Enhanced Fruit Drinks In Bid To Boost Sales Ahead Of Keurig Kold Debut

AIRPORT CITY, Israel -- SodaStream is banking on a new line of fruit flavorings to reinvigorate demand for its DIY soda machines amid slumping sales and profit, The New York Times reported. New offerings that users can add during the carbonation process will include low- and no-calorie options, along with flavorings enhanced with vitamins, fiber and protein.

Flavors will include pomegranate açaí, green tea lychee and yuzo mandarin, among others. The SodaStream lineup also includes Kraft's high-profile Crystal Light and Country Time and Campbell Soup Co.'s Splash and V8 V-Fusion brands through licensing agreements.

SodaStream sales fell 13% to $125.9 million in the quarter that ended Sept. 30, and sales of sodamakers in the United States plunged 60% to just 160,000. Profits peaked in 2012 at $43.9 million, and sales reached a high in 2013.

SodaStream generates most of its revenue from the carbon dioxide canisters, which aerate 60 liters of water and are leased by consumers. Owners have to exchange canisters where SodaStream machines are sold for a $15 fee, which analysts say can be a costly and cumbersome process deterring consumer adoption.

The Times said SodaStream machines have found a wider market in Europe, where soft drinks are more expensive and consumers are more focused on the environmental impact of beverage packaging.

At a conference in December sponsored by Beverage Digest, PepsiCo chief executive Indra K. Nooyi dispelled rumors that the Purchase, NY-based beverage giant plans to buy SodaStream. She said it's difficult to replicate the taste of the original product in a "make your own" machine and speculated that consumers are not willing to invest the 45 seconds it would take to make a Pepsi at home, versus popping open a can.

Meanwhile, all eyes are on Keurig Green Mountain as its gears up for its fall launch of its cold beverage platform, which unlike Sodastream machines, will not require a CO2 canister for preparation of carbonated drinks.

Keurig revealed at a recent analysts conference that its machine will be called Keurig Kold (yes, with a "K"). It will offer products from Coca-Cola Co., which acquired 16% of Keurig last year, and Dr Pepper Snapple Group.

In December, Keurig bought the rest of Bevyz, which held a patent for such a hot-cold machine. It previously had a 15% stake in the company. | READ MORE