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SodaStream Taps a New Market

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SodaStream (Nasdaq: SODA  ) is thinking outside of the starter kit box.

The company behind the popular home-based carbonated-beverage maker is unveiling AquaBar -- a plumbed-in drinking water solution -- at a design exhibition in Milan next week.

AquaBar is a countertop machine that serves up purified and filtered water. Sure, there are plenty of appliances on the market that deliver hot, cold, and ambient water, but SodaStream and Italian designer Stefano Giovannoni are also making sure that this serves up carbonated water.

Having sparkling water on tap will likely involve owners going through even more SodaStream carbonators -- and SodaStream is fine with that.

The incremental move also fits with SodaStream's environmental message, encouraging consumers to avoid buying still water and sparkling water in plastic bottles.

This morning's announcement doesn't provide a release date.

Is SodaStream taking a shot at Primo Water (Nasdaq: PRMW  ) with AquaBar? The provider of drinking water in exchangeable 3- and 5-gallon jugs tried to crash SodaStream's party last year with its Flavorstation machine. The system has fizzled through a lack of retail support and consumer demand, but could SodaStream be seeking revenge by moving into drinking water?

Of course not. SodaStream has been talking up plumbed-in solutions since it went public two years ago. As the value of SodaStream's brand grows, why wouldn't it explore a logical high-end solution for homeowners who prefer sparkling water over what's trickling from the tap.

Investors shouldn't be working any AquaBar projections into their SodaStream models yet, but it's clear that this company isn't aiming to be a one-trick pony.

Drink up
SodaStream is one of the many dynamic recommendations made to Motley Fool Rule Breakers subscribers over the years, 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.

Motley Fool newsletter services have recommended buying shares of SodaStream International. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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

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Related Tickers

10/21/2016 4:00 PM
SODA $24.04 Up +0.09 +0.38%
SodaStream CAPS Rating: **
PRMW $13.84 Up +0.09 +0.65%
Primo Water CAPS Rating: *