January 17, 2013
Eric Bleeker asks Austin Smith what he is looking for in SodaStream's (NASDAQ: SODA ) news and announcements in early 2013. SodaStream is an Israeli-based firm that recently entered the U.S. home carbonation system market. Austin is looking for three things:
First, market penetration in the U.S. SodaStream entered the U.S. market before the 2012 Christmas season, but without retailer Walmart carrying its products. Walmart now carries Sodastream; will this be enough to improve market penetration?
Second, final holiday season numbers. This past Christmas was in no way a "make or break" season for SodaStream. However, if sales were good, this bodes well for continued sales growth for the rest of the year.
Lastly, CO2 cartridge sales. Sales of these cartridges gives an indication of recurrent use by consumers. The cartridges are also high profit margin items. Increasing sales indicates increasing use, and not declining interest, once the novelty of the product fades.
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