SodaStream Hits Reset as Its Sales and Profit Fall

SodaStream, the once-hot device for do-it-yourself sodas, is betting on the growing thirst for bubbly water to bring some sparkle back to its business.

And in an effort to tap into the interest for enhanced waters, the company last month unveiled a new line of fruit flavorings like pomegranate açaí, green tea lychee and yuzo mandarin that users of its machines can add to water during the carbonation process.

“There is a blurring of the space between soda and water, and we’re in the perfect position to capitalize on that,” said Daniel Birnbaum, the company’s chief executive.

Sales of water are increasing strongly, according to data from Beverage Digest. Sales of bottled flat water in supermarkets grew 11 percent in 2014, while sales of sparkling waters without any sweetener grew 20 percent.

Still, even Coca-Cola and PepsiCo have struggled in the water business, where there are so many competitors selling bottled water, flat and sparkling, at cheap prices. And SodaStream’s canisters for carbonation are prohibitively expensive for many families and often cumbersome to recycle.

American consumers also can take spent carbonators to Walmart, Target, Costco and several regional groceries like Hy-Vee and Meijer — where they can also buy bottles of flavored sparkling water or flavor drops, like Mio, to add to their own water.

“It’s a huge hassle,” Mr. Schmitz said, “and the alternative is so cheap — I can buy a liter of sparkling water for 89 cents.”

The beverage industry is buzzing with rumors that Keurig Green Mountain, the coffee company in which Coca-Cola has a minority stake, is on the verge of unveiling a machine that makes both single-serve hot drinks and carbonated cold drinks. In December, Keurig bought the rest of Bevyz, which held a patent for such a hot-cold machine. (It previously had a 15 percent stake in the company, which officially was named MDS Global Holding.)

“I think many people aren’t going to want two machines, one for hot, one for cold, on their countertops,” Mr. Sicher said. “I think a hot-cold combination machine from Keurig is inevitable.”

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The New York Times