Beverages

SodaStream Turns to Sparkling Water, Younger Consumers

Newest machine engineered with modern kitchen, dorm rooms in mind

MOUNT LAUREL, N.J. -- SodaStream International Ltd. is aiming for more kitchen counters and even dorm rooms with its latest appliance release, the SodaStream Fizzi.

Previously unveiled as the Spirit, this entry-level machine arrives on American retail shelves this month, with the U.S.-specific name Fizzi.

The Fizzi starter package has a slimmer shape and a suggested retail price of $79.99, well below some of SodaStream's other sparkling-water makers, which range from $99.99 to $179.99. The starter package includes the machine; a BPA-free, 1-liter carbonating bottle; and a CO2 cylinder to bring bubbles to up to 60 liters of water.

With sparkling water a major beverage trend with women and millennials, the Fizzi is the company's slimmest, most space-efficient design, engineered with the modern kitchen and dorm room in mind, the company said. It allows consumers to transform plain water into sparkling water in less than 10 seconds in the comfort of their own homes.

"The Fizzi was developed to bring the ease and joy of preparing fresh sparkling water at home to more people at an accessible price point," said Daniel Birnbaum, SodaStream's chief executive officer. "When you think of how much you'd pay for 60 liters of sparkling water from a store, you'd realize that the Fizzi is practically free. Now there's no reason for anyone who loves bubbles not to join the home bubble revolution."

Where competition in this market once revolved around soda flavors, brand names and variety, SodaStream has shifted its focus to sparkling water with such slogans as "water made exciting" and "love your water."

In convenience stores, unit sales of sparkling water grew more than 8% during the first half of 2016, on continued strong growth by category leaders Perrier, Sparkling Ice and Topo Chico, among others.

SodaStream's Fizzi release is the company's biggest move since June, when competitor Keurig shelved its Keurig Kold soda brewer, which once aimed to "revolutionize" the carbonated-soft-drink business. Disappointing sales—only a "few thousand" sold, according to a report—Keurig, the leader in home, single-serve coffee brewers, took the machine off the market.

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