After disappointing 3Q, SodaStream to focus less on "soda" more on "stream"

SodaStream announced disappointing third-quarter results on Wednesday for the period ended September 30, due to the waning demand for soda makers.

The Israeli-based company with corporate offices in Mt. Laurel, N.J., reported revenue of $125.9 million for the third quarter, down 13 percent year-over-year. Total revenue includes its worldwide markets, including Western Europe and the Middle East.

Its revenue in the Americas, however, saw the most drastic decline at 41 percent year-over-year. The company's disappointing revenue is in line with earlier estimates.

In its product segment, total revenue was down 13 percent year-over-year, with the most significant decline in its starter kits, which saw a 34 percent decrease. In the three-month period, it sold 818,000 starter kits, down 32 percent from the same time last year. Its Sodamix flavors also saw an 8 percent decrease. CO2 refills, however, saw a 10 percent increase.

Less on "soda" more on "stream"

In line with the mega-trend shift toward health and wellness in the United States, SodaStream is shaking up its marketing and product line-up.

"Clearly, our current performance is an indication that a change in course is necessary to get the business back on track," said CEO Daniel Birnbaum. "… Consumers are abandoning traditional soda for more natural, less caloric water-based beverages."

The largest but most subtle change is the emphasis of — and the use of bold — on the word "stream" in its logo, as opposed to the emphasis on "soda." Its new tagline has also been changed to "water made exciting" from "your home soda factory."

Francis Hilario covers hospitality, restaurants and takes on general assignments and breaking news.