In this video, Motley Fool analyst Jim Mueller talks about the risks associated with SodaStream (NASDAQ:SODA). As a high-growth company, SodaStream attracts competition, which is one of the risks. It's not had much in the way of competition as it provides customers with everything for making sodas. However, there are some alternatives available in the market, and competition is coming. Also, soft-drink giants Coca Cola and Pepsi can either release their own soda makers or buy out SodaStream.

Jim also focuses on inventory risk. As inventory levels have been high compared to sales in the past, investors should be watching these. Convenience and location are other factors. As certain parts of the soda maker need to be replaced once used up, consumers should be able to buy these at convenient locations, which is why SodaStream needs to start supplying more retail stores including Walmart and Best Buy.

Lastly, Jim focuses on the popularity of SodaStream and whether or not it can become a fad. Consumers might switch to the new, healthier, and more eco-friendly way of getting soda, but might end up switching back to their old habits of getting their soda in cans and bottles.

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