SodaStream's Business Model

Goals

The goal of this research is provide a detailed overview of SodaStream's business model with regard to its revenue, market share, marketing tactics, messaging, and competitive advantage. This research will be used to assess a potential market-entry opportunity.

Early Findings

  • SodaStream is an at-home soda maker. Some other major brands of at-home carbonated beverage makers are Aarke and DrinkMate.
  • Therefore, these three brands compete the most closely with SodaStream within the same industry. Among sparkling water brands, the top sellers are Sparkling Ice, La Croix, Perrier and Polar.
  • As such, it is reasonable to conclude that five closest competitors to SodaStream are Aarke, DrinkMate, Sparkling Ice, La Croix and Perrier.

Aarke

  • This is a premium brand, starting at more than $200 for a product similar to SodaStream.
  • This Swedish company is privately-held so no revenue information is available.
  • The brand is popular in the US because it is recommended by Oprah and represents a stylish, "refined" approach to at-home carbonated beverages.
  • Its marketing messages showcase the product itself, made with metallic finishes reminiscent of a bar fixture. Of the last 21 Instagram posts, only 1 does not show the appliance (it instead just shows a sparkling beverage in a glass).
  • It "aims to dominate with its quality". Aarke also does not use any electricity or battery to operate, meaning no unsightly cords.
  • Aarke does not sell their own canisters or flavorings, meaning consumers can ironically purchase SodaStream (or other) branded cylinders to use with Aarke.
  • Therefore, all its selling points are on the function and aesthetics of the appliance itself.

DrinkMate

  • DrinkMate tries to sell itself on the point that its machine can "carbonate anything". This covers juice, wine, iced tea and any other beverage.
  • Like SodaStream, it offers a portable, handheld model.
  • DrinkMate do sell their own branded CO2 canisters but no flavorings or other add-ins.
  • Customers are invited to carbonate their own cocktails and mocktails, or infuse their own water with real fruit add-ins.
  • DrinkMate is a privately-held company with no revenue information available.
  • DrinkMate's price point is around $100 for its main product and $80 for the portable version. It priced similarly ("entry-level") to SodaStream.
  • Across several reviews, it became clear that DrinkMate relies on its ability to carbonate many beverage types (not just water), as it can be slightly more complicated to use than comparable products that just carbonate water.
  • DrinkMate's models also do not require electricity or batteries.
  • The main marketing messages for DrinkMate are quite diverse but generally showcase its ability to carbonate not just water. Its Instagram has sparkling orange juice, wine and smoothies. It also boasts health benefits of carbonating one's own drinks over commercial soda.

Unavailable Information

  • As both these companies are privately-held, detailed information about revenue, volume share, marketing spend and value share was not available.
  • Both Aarke and Drinkmate sell through conventional retail (online and offline) models and D2C via their website.

Proposed next steps:

You need to be the project owner to select a next step.