It's a smart move from SodaStream — yes, they have to comp the price of 2,000 SodaStream appliances, the limit they are giving out, but this creates new customers, as households with their new SodaStream will now continue to buy the drink mixes or other accessories.
The two companies were poised for competition back in October 2015, when Keurig Kold was first launched. But flaws from Keurig’s product was forecast from the get-go—Soda Sherpa, for example, reported that as soon as more details came out when Keurig Kold was being promoted, its stock declined.
No more (sweet) soda
In an article from the time Keurig Kold was launched, investing website The Motley Fool pointed out the number one reason Keurig Kold wouldn’t be a threat to SodaStream: “Most SodaStream drinkers don't want soda.”
And by soda, they meant sweetened carbonated beverages. “About 60% of SodaStream users use the device only to make carbonated water, while only 7% use it exclusively for soda,” The Motley Fool reported. “The Keurig Kold, on the other hand, is intended almost exclusively for soda consumption as its reliance on pods means that the user will have to purchase some kind of flavored pod to make a beverage.”
Do they want to make it at home?
As sweetened soda beverage sales decline, sparkling water is on the rise, and products catering to this demand keep popping up.
SodaStream capitalized on this opportunity back in 2015, rebranding itself as a seltzer maker in an effort to fizz up its flat sales.
But just because Americans like sparkling water, is it safe to assume that they want to make it at home? It remains to be seen how these counter-top appliances will fare. It’s been a rough year for Keurig—not long before Kold’s discontinuation, a partnership with Campbell also tanked as sales were unsatisfactory.
In the case of SodaStream, the company has seen more growth after rebranding, though it is concentrated mostly in the European market. In May, The Motley Fool reported a double-digit jump in Europe paired with a 6% drop for the US, totaling to 10% sales growth year-over-year globally.