Sodastream’s cocktail for success

There’s an interesting piece at Globes (here) about Sodastream, its woes, and its recovery plans. The issues, apparently, are nothing to do with BDS, and everything to do with a worldwide shift away from sugared drinks, and even carbonated drinks.

SodaStream bases its choice on the trend developing mainly in the US but in other countries too. Global per capita consumption of carbonated beverages fell from just over 46 gallons (174 liters) annually in 2004 to just over 38 gallons (144 liters) in 2014. The figure projected for 2018 is about 36 gallons (136 liters), which will make it a 22% drop in fourteen years.

The volume of beverages produced by Coca Cola rose 2% last year. The 2013 figure was similar, and this compares with a 6% rise in 2007. “The consumption of diet beverages in the US, like Diet Cola or Zero, fell by 7% annually, or nearly 15% cumulatively, in 2014-2015. And diet represents 40% of the total carbonated beverages market. Consumption of non-diet beverages is falling at an annual rate of 3-4%. And this is a revolution, like what we were talking about with mobile telephones,” says Birnbaum.

The reference to the revolution in mobile phones is to the effective rise and fall of Nokia. The Sodastream CEO, Birnbaum, believes Coke are heading the same way. I think he’s wrong, but do expect changes given the market moves as indicated above. It will still be a challenge for Sodastream to survive.