Many people have heard the name Sodastream International Ltd (NASDAQ:SODA), but not many people know the details. The primary reason for this is that Sodastream International Ltd (NASDAQ:SODA) is an Israeli company that has penetrated much of Europe, but not much of the United States. That being the case, growth potential is still high. Considering the short position on Sodastream International Ltd (NASDAQ:SODA) is 38.40%, there are risks, but are those risks overplayed?
What is SodaStream?
Sodastream International Ltd (NASDAQ:SODA) sells at-home beverage carbonation systems. Its products can be found in 60,000 retail stores in 45 countries. Revenue and earnings have consistently improved on an annual basis. The last quarter saw a 33.90% year-over-year revenue increase, and a 19.50% year over year earnings increase. What makes Sodastream International Ltd (NASDAQ:SODA) so attractive to consumers? How has this growth been possible?
The two biggest selling points for Sodastream International Ltd (NASDAQ:SODA) are convenience and savings.
Since these are at-home carbonation systems, there is no need to purchase soda at the store. Therefore, lugging a case of soda from the store to the parking lot and then into the house isn’t necessary. Not having to purchase cases of soda also frees up storage space at home. Yet another convenience is that it takes less than 30 seconds to turn water into soda.
According to SodaStream, customers also rack up savings. Apparently, it costs $0.25 per can of soda or liter of sparkling water. Some customers will debate these numbers night and day, but the majority of customers agree that money is being saved.
The prices for SodaStream Soda Makers differ slightly from one retailer to another. At Amazon.com, prices range from $79.95 for the Fountain Jet to $199.95 for the Revolution. Based on the majority of Amazon.com customer reviews, SodaStream products are a good investment. If the overall reviews continue to impress, then SodaStream has strong growth potential.
Can SodaStream outperform Coke and Pepsi over the long haul?
You might have a chance at stealing Angelina Jolie from Brad Pitt, but it’s not likely. Same goes for the question above.
The Coca-Cola Company (NYSE:KO) and PepsiCo, Inc. (NYSE:PEP) are two of the top-performing stocks over the past 30 years. Please take a moment to let that sink in. The Coca-Cola Company (NYSE:KO) is the most recognizable brand in the world, and PepsiCo, Inc. (NYSE:PEP)’s product diversification with sparkling beverages and snacks has led to long-term growth and stability.