SodaStream Sweetens the Pot

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SodaStream's (Nasdaq: SODA  ) growing with what it's got, but it's still thirsty for more.

The company behind the popular home-based soda makers is launching a new line of flavors sweetened by an all-natural plant-based sweetener called stevia. A dozen flavors will be offered. Beyond the obvious all-natural diet cola, orange, and lemon-lime syrups, some exotic flavors, including peach-pear and cranberry-apple, will be available.

The initial flavors will pack fewer than five calories per serving.

Europe will get fizzy with them first. A stateside rollout is slated for later this summer, which is just around the time when Kraft Foods (NYSE: KFT  ) raises SodaStream's profile by introducing Country Time and Crystal Light flavors for SodaStream system owners.

The move makes sense, since SodaStream has been taking subtle jabs at Coca-Cola (NYSE: KO  ) for its high-fructose corn syrup sweetener solution. There are Coke fans who miss the days of sugar-sweetened Coke enough to pay a premium to import Mexican-canned Coke (which is still sugar-based).

The move comes at a good time for SodaStream. The company is coming off solid quarterly results last week. Revenue climbed 32% to $85.7 million, and adjusted earnings rose 21% to $6.7 million. The one letdown in the report was that start system unit sales were a little soft -- growing only in the single digits -- but the influx of new flavors should help spur sales. We're now looking at new flavors and an entirely new plant-based sweetener in the mix.

I've emphasized in the past that it's not fair to compare SodaStream to the more established Green Mountain Coffee Roasters' (Nasdaq: GMCR  ) Keurig platform. However, Green Mountain obviously had strong sales gains last year as a few java heavies moved in. Clearly, flavor varieties are influential, and SodaStream is ready to pop things to a higher level.

Drink up
Both Green Mountain and SodaStream have been dynamic recommendations to Rule Breakers subscribers, but this is now a great time to discover the next rule-breaking multibagger that the newsletter has unearthed. It's a free report. Want it? Get it.

The Motley Fool owns shares of Coca-Cola. Motley Fool newsletter services have recommended buying shares of Green Mountain Coffee Roasters, SodaStream International, and Coca-Cola. Motley Fool newsletter services have recommended creating a lurking gator position in Green Mountain Coffee Roasters. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Green Mountain. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

Read/Post Comments (4) | Recommend This Article (4)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 07, 2012, at 3:27 PM, fvgetcom wrote:

    This is really good news for people who love soda but don't like the negative health benefits.

    I never thought it was worth the trouble to assemble & store the machine, carbonator & syrups that the Soda Stream system requires...but the new stevia syrup will be a game changer for me.

  • Report this Comment On March 07, 2012, at 11:31 PM, mckilligan wrote:

    Sodastream sweetens the pot, article mentions getting sugar sweetened Coca Cola from Mexico. No need to, as Coke on the Kosher shelf in supermarkets for Passover is sugar sweetened and it is great.

  • Report this Comment On March 08, 2012, at 3:26 AM, joewygant wrote:

    I used to think that buying bigger was better, Meal planning is key, so look for the items you’d need to create healthy meals, Plan your meals based on what’s on sale and see if you can find samples from "Get Official Samples" that is even better

  • Report this Comment On March 08, 2012, at 4:29 PM, mmmm101 wrote:

    The machines do not require any assembly. The cartridge screws into the back of the machine - one does need to take the plastic cover off to do this, but my 9 year old got it in 2 tries. It is yet another appliance on the countertop, but small foot print.

    I was very skeptical about owning one, but after a couple of uses, I love it!!! My kids love it more than I do... and the clincher... my hard to please wife loves it, 'nough said :)!

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10/21/2016 10:58 AM
SODA $24.06 Up +0.11 +0.46%
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