It's been a busy week for SodaStream's
It's a tactical move, since each of the releases is simply packaging news in a way that flatters its product's benefits.
Let's quickly go over each of the four announcements, followed by my italicized thoughts on what the fast-growing pop star is trying to get across.
- A new line of Sparkling Naturals will be available for its flagship cola, root beer, and ginger ale flavors. The syrups are 100% free from artificial flavors, colors, and sweeteners. Our non-diet flavors were already considerably healthier than Coca-Cola
(NYSE: KO)and Pepsi (NYSE: PEP). Now we rock even more.
- It will introduce a pink version of its high-end Fizz system in October, with 5% of the proceeds going to breast cancer charity Susan G. Komen for the Cure. We care, OK? Don't go nit-picking that 5% isn't much or that we're not kicking in some coin from our pink grapefruit sodas. This is a charitable move, but we're still a business.
- Susan Sarandon was on hand at the International Housewares Show in Chicago, as SodaStream introduced "The Cage" -- an eco-exhibit showing how the typical family discards 10,000 empty bottles and cans over a five-year period that ultimately wind up at a landfill. We know that only 25% of you recycle, but maybe this gargantuan cage will remind you that our refillable bottles are better for the environment. Sarandon looks pretty good at 64, doesn't she?
- The soda flavor bottles will soon switch to Bio Bottle biodegradable packaging. We've been hypocrites with our plastic syrup bottles. Even Green Mountain Coffee Roasters'
(Nasdaq: GMCR)eco-friendly message gets tripped up with its K-Cups. We're working on it. Sarandon's watching!
SodaStream originally pitched its simple platform on cost, convenience, and variety. Who wants to lug around bottles and cans from the store? Coke and Pepsi cans add up! Haven't you always wanted to impress your friends by mixing orange soda with root beer and a splash of grape fizz?
However, it appears that SodaStream's stronger marketing traits are appealing to the health and green benefits of its slick carbonators.
It's working. Revenue soared 59% in its latest quarter, and earnings landed well ahead of Wall Street's targets. The stock has more than doubled since going public at $20 just four months ago.
This week's deluge of press releases validates SodaStream's product, but the real spin is that it's hammering home the company's benefits to justify its own status as a darling growth stock. It's at the right place at the right time, looking more fizzy than flat.
SodaStream is taking steps to become a major consumer brand, but there's another company making all of the right moves to position itself as China's first national consumer brand. Learn more with a free special report.
Coca-Cola is a Motley Fool Inside Value selection. Green Mountain Coffee Roasters and SodaStream International are Motley Fool Rule Breakers recommendations. Coca-Cola and PepsiCo are Motley Fool Income Investor choices. Motley Fool Alpha has opened a short position on Green Mountain Coffee Roasters. Motley Fool Options has recommended a buy puts position on Green Mountain Coffee Roasters. Motley Fool Options has recommended a diagonal call position on PepsiCo. The Fool owns shares of Coca-Cola, and PepsiCo. 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. Drink up!
Longtime Fool contributor Rick Munarriz bought a SodaStream system in November and was impressed enough to buy one for his parents a month later. He does not own shares in any of the stocks in this story. He is part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.