Shares of SodaStream — the make-your-own soda company — has been hitting all-time highs, and its heading higher again this morning.
In a new report Deutsche Bank analysts give us a snapshot of the company, and why it’s doing well:
- About 90% of retailers that include Bed, Bath & Beyond, Williams-Sonoma, Kohl’s, Sur La Table and Crate & Barrel which carry SodaStream products, reported strong sales trends. Sales were reported to have picked up during summer, and returns were fairly rare.
- Demand for refill canisters is strong and SodaStream is reportedly struggling to keep up with demand for the product. A Bed, Bath & Beyond store said products were moved to the customer service desk to keep up with demand and occasionally had to call the company for more units. Williams-Sonoma and Sur La Table said demand was in keeping with supply.
- There is healthy competition in the do-it-yourself soda market. iSi’s Twist ‘N Sparkle which is priced cheaper at $49.99 can carbonate any beverage as opposed to forcing the consumer to carbonate water first and then add flavoring. Overall though, the product is more expensive to operate.