Symbol Soda... Coke will not be able to grow the at home market in markets that Sodastream is in. IMO....I'm estimating Sodsatream sold 600,000 machines this xmas vs 300,000 in the USA. Next year they will sell 1M plus during xmas. The Sodastream stuff taste better.... IMO
tejdem: many have tried to compete against Coke and have failed. Having been in other countries, people ask for coke. Pepsi is the biggest competitor and they have a hard time competing.
"Many have tried to compete with Coke". Name the many?? You're saying this as if they number in the hundreds, no forget that, the dozens. No, many have not tried to compete with Coke. KO has done a fine job of creating a glorious moat and have benefited greatly for nearly 100+. With that said, SodaStream is competing in an entirely different way, through benefits like health, convenience, storage space, no bottle deposits any more, and being more eco-friendly. Can you name another so-called competitor that has competed with the company in such a fashion over the years, honestly asking? Here is something else to consider: SodaStream has managed to acquire 1% household penetration in the US without even entering the grocery channel to any significant degree. Here is something else to consider, they have done this in roughly only 2 years and without the benefit of side-by-side shelf space with KO or in the beverage aisle of your grocery store, identifying what the product does and/or IS. One last thing, ask your neighbor if they have a SodaStream, if they answer "huh, what's", that means SodaStream has a world of market share yet to conquer and grow into. A growth story is different than what KO offers as it is definitely a mature consumer staple at this point if you will. I would say that there is room for both in an investors portfolio.
Wow, nice try with educating the KO following and investor base. We're all investors here, so what is more likely to happen in 2013? Does SODA outperform KO once again or vice versa. SODA is not a fad as is evidenced by the growth rate and every data point one can throw at it. Fads usually touch on one human sensibility and SODA touches on at least 4-5 and is ingested. Most fads are not ingested ie. clothing or technology. SodaStream has been expanding for the last 5 years and is only in the US in mass market channels since 2010. YOY growth was 50% and it will probably start to normalize to a growth rate of 25-35% over 2013 as most expansionary efforts work in such a fashion.
Is Sodastream a serious threat to Coke, probably not the way most think. But in certain markets, yes, it absolutely is due to the population demographics like in Greece, Norway, Sweden, France, etc which just one of the reasons KO has made such a stink about SodaStream in the past. These shifts in consumer behaviors take time to develop and as such from a KO investor point of view my only concern would be whether or not the company has the foresight to identify these shifts and a game plan in place to address it accordingly.
In 2004 when the Keurig began its mass market distribution, it didn't gain real traction until 2008. By that time it was too late, ConAir, Sunbeam, Nespresso Mr.Coffee and others hadn't a plan in place for the single-serve market demand shift and as such they lost sales in North America. ConAir was on the brink of bankruptcy. And guess what, everyone was saying the same thing about the Keurig as what is being posted here, too expensive and just a novelty. Nearly 10 years later and it is the leading single serve coffee producer in North America. SodaStream has one thing going for it that Keurig doesn't though. It actually makes $30 on every machine it sells, Keurig makes nothing and on certain machines loses a buck or two.
Well, that's my 2 cents investors, good luck to all and be well!
Wow, never heard anyone say it even tastes good, much less "better". All I heard from people who sampled Soda Stream is that it leaves a horrible aftertaste and film in your mouth. How many of the alleged 600,000 machines sold this Xmas have been returned already?
For Diet Coke fans Sodastream is better. If you are addicted to High Fructose corn syrup and 10x much salt then folks will stick with Coke. My point is that Soda is expanding rapidly and getting the hard core soda drinkers. Coke has a problem and will only get worse with time. KO is dead money or you will loose money. Not easy to expand when you are loosing your at home customers at such a rapid clip. I also think that MNST and Red bull have a problem since the soda energy drink is pennies on the dollar in terms of cost.