Check out their website for pictures of the machine they will roll out to turn water into soda. It's pretty crafty and catchy! Like the SA article, it is similar to a kuerig. Kuerig's took the coffee market by storm. I am hoping these do the same, but my fear is that folks with a kuerig won't want to clutter countertops. Who knows? Either way I love this stock and especially at this price. If I had more to invest, it would all be here at these prices. I work in distribution, and we just installed water machines throughout several DC's. Purified water isn't going away. My favorite aspect, being from a distribution background, is that the CEO has done this type of business in the past, though with a different product. He understands the point of sale process well and how to profit using this business model. Good luck to everyone here.
I don't think it matters that much whether it's a Keurig or any other coffee maker on the countertop. My guess is a soda machine will probably be used with less frequency and may be kept in a cupboard (that's actually where I keep my coffee percolator) and pulled out for usage when needed. The new water dispensers will accommodate a "plug and play" Omnifrio machine OR a coffee maker so early adopters may just go that route.
It's just gravy anyway - the mainstream water business should thrive regardless - the Omnifrio is another one of the "razors" designed as much to sell more water "razor blades" at a higher margin. If it really takes off so much the better - it will add "S" cup sales and CO2 cartridges into the mix as additional "razor blades" recurring sales.
Billy Prim is 100% entrepreneur and always looking for new avenues - like "Primo Pure Ice" - that itself could turn into a big product. They came up with a lot of new products and concepts with the Blue Rhino business and will doubtlessly continue innovations with Primo. I'm pretty impressed with what they have already done - especially once I see the numbers laid out like the dude in the SA article did.
I agree with most of your post, and I also like that Ominfrio was an acquisition. It helps me rest assured they are healthy and moving in the right direction. I think the frequency of use depends solely on the individuals and also how good they make it. I think about the frequency a family of 4 drinks a coke. Lunch and dinner on weekends, dinner during the week. Maybe 2 cokes per day being safe? I can't see it getting pushed aside unless it becomes overly expensive as a substitute for cans, or is too time consuming/hassle to use. Either way it will get purchased, especially given the launch timing. The bottom line, as you touched on, is that the company is growing and expanding consistently. I am really happy with the stock and look forward to seeing what happens over the years.