Wonder

Sparkling Water

Delivered February 16, 2020. Contributor: Varun N.

Goals

To research the sparkling bottled water and at-home sparkling water carbonation industry to help enter the sparkling water product.

Early Findings

Top Brands of Sparkling Water by SalesSparkling water sales for the 52 weeks ending 10th August 2019 were $2.45 billion.
The top sparkling water brands by dollar sales in the 52-week period ending 11th August (IRI data):
Sparkling Ice: $478.6 million 
La Croix: $429.3 million 
Perrier: $289.2 million 
Bubly: $194.4 million 
Polar: $188.4 million 
San Pellegrino: $154.7 million 
Topo Chico: $137 million 
Shweppes: $54.2 million 
La Croix Curate: $52.2 million 
Sparkling Ice Lemonade: $52 million 
Dasani: $51.7 million 
Canada Dry: $50.7 million 
Poland Spring: $47.6 million 
Arrowhead: $33 million 
Spindrift: $28.9 million 
Vintage: $27.9 million 
Cascade Ice: $17.5 million 
Ice Mountain: $17.4 million 
Deer Park: $16.1 million 
At-Home Carbonation Market SizeThe market potential for at-home carbonation is $260 billion globally and $40 billion in the United States, assuming an 87% household penetration in the US.
The size of the US at-home carbonation market is estimated to be $14 billion.
SodaStreamPepsiCo acquired SodaStream for $3.2 billion in December 2018.
SodaStream's revenue in 2017 was $543.4 million.
The company sold 1,181,000 "sparkling water maker starter kits
" globally in Q4 2017 and 1,047,000 in Q2 2018.
SodaStream is the pioneer in at-home carbonation.
Competition Sparkel, KitchenAid, DrinkMate, Bonne O, Aarke are competitors to SodaStream.
Soda siphons such as SodaPlus, SodaSparkle, and iSi Soda Siphon are also competition.

Proposed next steps:

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We will do a competitive landscape for the top 7 bottled sparkling brands in the US (Sparkling Ice, La Croix, Perrier, Bubly, Polar, San Pellegrino, and Topo Chico). As the companies identified as competitors of SodaStream (in the strategy report) are not necessarily the top competitors, we will first identify the top 5 competitors to SodaStream and then perform a competitive landscape for the top brands. The competitive landscape will include revenue, value share, volume, volume share, marketing spend, sparkling water products (variants such as flavored and regular), pricing, business model, and competitive advantage. For each of the bottled sparkling water brands and at-home sparkling water carbonation brands (Soda Stream and its 5 competitors) we will analyze the marketing and communication strategy. This will cover positioning, brand identity, pricing, communication goals, target audience, media vehicles used, creatives, any recent campaigns, and 2-3 examples of creatives from those campaigns.

We will find 3-5 drivers of growth, growth rate, 3-5 trends, 3-5 consumer preferences, and 3-5 challenges of the at-home sparkling water carbonation segment as well as the bottled sparkling water segment. Additionally, we will perform a SWOT analysis for the bottled water segment, the at-home sparkling water carbonation segment, and each of the top brands in both segments. And, we will perform a sales channel analysis for the the bottled water segment and the at-home sparkling water carbonation segment. We also identify 3-5 barriers to entry for both segments.

We will perform a demographic and psychographic analysis of both the at-home sparkling water carbonation segment and the bottled sparkling water segment. The demographic profile will include age, gender, income level, educational level, and marital status. If any of these five demographic details are not available, we will substitute it with another demographic such as race/ethnicity, location (urban/rural/suburban), religion, occupation types, or socioeconomic status. The psychographic profile will include their habits, hobbies, spending habits, and values. If any of these four psychographic details are unavailable, we will substitute it with another psychographic such as consumer attitudes, affinities, emotions, likes, or dislikes.