Israeli Startup SodaStream Looks to Flavored Waters as Consumers Shun Sugary Drinks 'U.S. consumers don't want better Coke, they want more interesting water.'

By Reuters

entrepreneur daily

This story originally appeared on Reuters

Facing new competition from the expected launch of Keurig Green Mountain Inc's at-home soda machine in 2015, top player SodaStream International is seeking to appeal to increasingly health-oriented consumers.

As U.S. demand for sweet soft drinks declines, SodaStream in October cut its 2014 revenue and profit forecast and said it would close a controversial factory in the Israeli-occupied West Bank, that had sparked calls for a boycott of its products.

At the same time, competition is heating up. Keurig's upcoming cold beverage system is being developed with help from Coca-Cola, which became Keurig's largest shareholder last year when it bought a 16 percent stake.

"We are not about to relinquish our number one position in the U.S. or anywhere. We are looking forward to healthy competition," Chief Executive Daniel Birnbaum said on the sidelines of a news conference to launch its new product line.

SodaStream, whose revenue grew 30 percent a year on average since 2008, reaching $562.7 million in 2013, forecast a 9 percent drop in 2014. Its stock on Nasdaq has fallen almost 60 percent since last April when it hit a high for 2014 of $47.30, and is now trading at $19.90.

"I think we failed in 2014 because we didn't identify quickly enough the change in the market," Birnbaum said.

"U.S. consumers don't want better Coke, they want more interesting water."

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

Barbara Corcoran Sounds Off on NAR Settlement: 'It's a Scary Time for Real Estate Agents'

The "Shark Tank" star took to Instagram to share her thoughts on Friday's ruling.

Side Hustle

Her 'Crude Prototype' and $50 Craigslist Purchase Launched a Side Hustle That Hit $1 Million in Sales — Now the Business Generates Up to $20 Million a Year

Elle Rowley experienced a "surge of creative inspiration" after she had her first baby in 2009 — and it wasn't long before she landed on a great idea.

Starting a Business

A Side Hustle Consultant Shares the Most Lucrative Gigs Right Now

Plus, he answers the side hustle questions he gets most often from clients.

Starting a Business

She Never Wanted to Start a Business, But Chronic Insomnia Was Motivation — Here's How She Achieved $20 Million in Sales and 8 Hours of Sleep a Night

Dr. Kathrin Hamm, founder and CEO of sleep-wellness company Bearaby, wanted to find a solution for her sleeplessness — and the products on the market weren't cutting it.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.