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

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."

Wavy Line

Editor's Pick

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Business News

Oscar Mayer Is Changing the Name of Its Iconic Wienermobile

The company is slamming the brakes on its wiener on wheels and rolling out a new meaty ride.

Health & Wellness

Sleep Better, Snore Less, and Stay Cool with This Tech-Packed Pillow, Now $49.99

Let technology help you sleep better with this 8-in-1 cooling pillow.

Business News

'All Hell Is Going to Break Loose': Barbara Corcoran Issues Warning About Real Estate Market, Interest Rates

The "Shark Tank" star appeared on FOX Business' "The Claman Countdown" this week.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Leadership

The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.