SodaStream: The Story Behind The $1 Billion Do-It-Yourself Seltzer Phenomenon

SodaStream

SodaStream — the company that makes do-it-yourself seltzer and soda kits —  blew away analyst estimates and raised guidance today in its Q1 report.

The company’s shares are up 12% to a brand new high, and have now more than doubled since its IPO last year.

Some highlights from today’s earnings release:

  • Revenues up 50% over Q1 2010 ($64 million)
  • Revenues in the U.S. boomed, up 153%
  • EPS per share of $0.38
  • Soda maker unit sales up 99%
  • Soda marker sales up 271% in the U.S.
  • Market cap is now nearly $1 billion.

But what is this beverage marker sensation?

It’s actually been around for some time, but it’s just starting to boom in the U.S.

[slideshow]
[slide
permalink=”sodastream-has-been-around-since-the-early-1900s-1″
title=”SodaStream has been around since the early 1900s”
content=”SodaStream was founded in 1903 in London, and was sold as a product for upper class households. That included the royal family (in the time of King Edward VII).

Source: SodaStream
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[slide
permalink=”it-became-a-household-product-in-the-uk-in-the-1950s-2″
title=”It became a household product in the UK in the 1950s”
content=”The first at home SodaStream machine was released in 1955. It has 14 flavour syrups.

Today, SodaStream has over 30 flavours. It also have 6 models of its soda maker.

Source: SodaStream
image=”http://static.businessinsider.com/image/4dd3ef894bd7c80c15000000″
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[slide
permalink=”it-was-successful-brand-and-had-this-iconic-1980s-uk-advertisement-3″
title=”It was successful brand, and had this iconic 1980s UK advertisement”
content=””
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[slide
permalink=”and-this-1990s-one-get-busy-with-the-fizzy-4″
title=”And this 1990s one: “Get Busy With The Fizzy!””
content=””
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[slide
permalink=”the-company-was-sold-by-cadbury-schweppes-in-the-late-1990s-5″
title=”The company was sold by Cadbury Schweppes in the late 1990s”
content=”Soda-Club, and Israeli company, buys SodaStream in 1998. The deal moves many of SodaStream’s production facilities to Israel and others to Germany. It now makes its products in China as well.

SodaStream and Soda Club products can now be purchased in countries throughout Europe, Australia, South Africa, and the U.S.

Source: Wikipedia, SodaStream
image=”http://static.businessinsider.com/image/4dd3f39d4bd7c8c91a0c0000″
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[slide
permalink=”heres-how-it-works-6″
title=”Here’s how it works…”
content=”Note: Promotional video, demonstration begins at 0:40
image=”http://static.businessinsider.com/image/4dd3f39d4bd7c8c91a0c0000″
caption=””
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]
[slide
permalink=”the-company-ipod-in-november-2010-and-its-share-price-has-increased-104-since-then-7″
title=”The company IPO’d in November 2010, and its share price has increased 104% since then”
content=”SodaStream’s (SODA) IPO priced at $20 a share. It now trades at nearly $50 a share.”
image=”http://static.businessinsider.com/image/4dd3f4ffccd1d58808140000″
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[slide
permalink=”in-q1-2011-the-company-crushed-earnings-expectations-8″
title=”In Q1 2011, the company crushed earnings expectations”
content=”SodaStream raised guidance for its full year 2011, after reporting a 50% increase in revenue, quarter-over-quarter.

It is expecting 60% profit growth in 2011. U.S. sales growth drove its Q1 beat.

Pictured: CEO Daniel Birnbaum
image=”http://static.businessinsider.com/image/4dd3f78d4bd7c8d61a320000″
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[slide
permalink=”but-there-are-some-concerns-9″
title=”But there are some concerns”
content=”The company’s drinks have been knocked for being inconsistent, because levels of carbonation or syrup vary when making the drink. It has also been cited for its expense, when compared to buying traditional sodas.

Currently, the short-ratio on the company’s stock is at 4.8%.

The company has also been criticised for its production facilities in Israeli settlements.”
image=”http://static.businessinsider.com/image/4dd3fbac49e2ae463c130000″
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]
[slide
permalink=”watch-the-latest-uk-advertisement-for-sodastream-nostalgia-10″
title=”Watch the latest UK advertisement for SodaStream (NOSTALGIA!)”
content=””
image=”http://static.businessinsider.com/image/4dd3fbac49e2ae463c130000″
caption=””
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]
[slide
permalink=”what-other-brand-are-investors-going-nuts-for-11″
title=”What other brand are investors going nuts for?”
content=”Check out the details on the hot yoga-wear crazy Lululemon >
image=”http://static.businessinsider.com/image/4b9912f17f8b9abd19410200″
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[/slideshow]