SodaStream Grows Up

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SodaStream (Nasdaq: SODA  ) isn't just about soda anymore.

In an interview with blogger Galileo Russell, SodaStream's CEO explained some of the company's expansion initiatives in both the booming energy drink market, as well as a potential play for adults seeking heartier libations.

On the energy front, Daniel Birnbaum's company will be adding fruit-flavored energy drinks to its existing line. SodaStream's presence in the energy drink market at the moment consists solely of a basic energy syrup and a diet version.

Sure, this may be a trying time for the adrenaline-boosting niche.

Politicians are urging the Food and Drug Administration to increase the regulatory scrutiny in the energy drink market, and the move has hammered the shares of Monster Beverage (Nasdaq: MNST  ) . Monster is one of the best performing stocks over the past decade, but the shares are trading 36% off their April highs on regulatory fears.

There's still an opportunity here, and unlike its traditional soft drinks that don't have much of a cost advantage over private-label sodas, SodaStream's homemade energy drinks can save consumers as much as 80% off over what Monster and Red Bull are fetching.

Then we raise our glass to Night Spirit.

The new line of syrups slated to come out later this year will come in grown-up flavors including cosmopolitan, mojito, and cuba libre. The flavors won't be alcoholic. It will be up to the owners to add the hard stuff on their own -- if they want to.

It's true that some of these signature drinks aren't typically associated with carbonated water -- or seltzer -- but that hasn't stopped SodaStream before. It teamed up with Kraft Foods (Nasdaq: KFT  ) this summer to introduce Crystal Light diet drinks and Country Time lemonade as co-branded flavors for SodaStream users.

It all adds up to a machine that does more than just crank out traditional soft drinks, and that's something that will help boost the Israeli-based company's already heady growth. Revenue soared 49% in its latest quarter, fueled by the company's growing global popularity.

SodaStream is about so much more than pop these days -- now if only the stock could itself could pop higher, shareholders would be happy.

Drink up
SodaStream is blazing as a consumer-facing growth stock, and it's just the kind of stock that legendary investor Peter Lynch used to single out before his peers caught on. A new report singles out three millionaire-maker stocks in the same mold. SodaStream isn't one of them, but the free report should open up a few opportunities for you to consider. Check it out now

Longtime Fool contributor Rick Aristotle Munarriz has no positions in the stocks mentioned above. The Motley Fool owns shares of SodaStream. Motley Fool newsletter services recommend Monster Beverage and SodaStream. 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.

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  • Report this Comment On October 01, 2012, at 3:30 PM, GordonsGecko wrote:

    I'm perfectly content to continue buying at these low levels. Let the market figure it out while we all continue to buy, buy buy...

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