• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

1

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Retail

SodaStream’s CEO Really Hates Bottled Water’s Rising Popularity

By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
By
John Kell
John Kell
Contributing Writer and author of CIO Intelligence
Down Arrow Button Icon
April 19, 2017, 3:42 PM ET
Video Poster
Add Fortune on Google for similar content.

Americans are increasingly ditching soda for water. Do-it-yourself beverage carbonation maker SodaStream CEO Daniel Birnbaum has mixed feelings about the trend.

“We all know that water is healthier [than soda],” Birnbaum told Fortune in a recent interview. Asked how we should use this information, he responded, “You can encourage the consumption of public waters. You can encourage reusable bottled [water].”

But what Birnbaum doesn’t advocate is the increased marketing of bottled waters sold by Coca-Cola (KO), PepsiCo (PEP) and Nestle (NESTLE-S-A). Across beverage categories, volume growth was strongest for bottled waters like Poland Spring, Aquafina and Dasani as demand for carbonated soft drinks declined, according to annual stats released by industry tracker Beverage Digest on Wednesday.

In response to falling soda sales, big soda makers have added healthier beverages to their portfolios. This includes new branded categories such as “premium waters”—a sliver of the market that comes with higher price points and trendier bottle labels. Coca-Cola leads the market with Smartwater, while PepsiCo launched its own premium water line last year.

SodaStream’s Birnbaum is vehemently against these “premium” brands, which he calls “the biggest marketing and advertising scam of all time.” Throughout his interview with Fortune, Birnbaum repeatedly called Smartwater “dumb water” and questioned why PepsiCo had entered the category. “What’s the point of another brand? The whole industry is wrong,” Birnbaum says. He claims that not only do Americans trash millions of bottles of water each day, but Coca-Cola and Pepsi, by selling brands like Smartwater, are to blame.

To be sure, when Birnbaum makes these claims, he has his own business interests in mind. SodaStream, which sells 3 million machines globally each year, would obviously like to sell more. Market penetration is strong in Europe, where 16.5% of German households and 20% of Swedish homes have a SodaStream device on their kitchen counters, mostly because those markets enjoy sparkling water and are more environmentally conscious. In the U.S. where those trends are less prevalent, market penetration is a slim 1%.

Sales for SodaStream’s devices sputtered a few years ago after a decision to aggressively stock the brand’s products on Wal-Mart Stores’ (WMT) shelves led to overstocking and eventually, discounting. “That was a mistake,” Birnbaum concedes. “They bought $50 million from us but it didn’t move and it got marked down, killing us everywhere else.”

SodaStream eventually pivoted. It focused more on retailers that would hold firmer on price, maintaining relationships with Bed Bath and Beyond (BBBY), Target (TGT) and Amazon (AMZN). After sales dropped in 2014 and 2015, revenue recovered last year, rising to $476 million from 2015’s $413 million. The stock also began to rebound.

Birnbaum attributes SodaStream’s recovery to a keen focus on the brand. He says it stands for the “environment, sustainability, health and wellness, and convenience.”

This wellness push is a relatively new angle for the at-home beverage device maker. In fact, SodaStream’s shift in marketing resembles changes at PepsiCo and Coca-Cola. When Birnbaum first joined the company a decade ago, he positioned it to be a way for consumers to make cola at home using whatever level of sweetness they deemed appropriate. (SodaStream even partnered briefly with PepsiCo.)

But a few years ago, SodaStream began to see the writing on the wall: Americans were falling out of love with soda. Roughly three years ago, SodaStream took steps to re-positioned the brand to focus on water. Today, 90% of volume made on the machines is turning plain water into sparkling.

“We sparkle water and if there’s a culture that enjoys that, we are a natural fit,” Birnbaum said. “In America, we don’t drink a lot of sparkling water but we are seeing declines for colas. Consumers are walking away from the sweet stuff in favor of water and other hydration options.”

To more aggressively compete as a sparkling water brand, SodaStream last month announced the launch of the Aqua Fizz Sparkling Water Maker—a unit that will aim to attract water seeks while SodaStream still can target soda users. The new brand will hit retail shelves in the U.S. starting in June.

About the Author
By John KellContributing Writer and author of CIO Intelligence

John Kell is a contributing writer for Fortune and author of Fortune’s CIO Intelligence newsletter.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

Stripe CEO Patrick Collison gestures with his hands as he speaks into a microphone before a congressional committee hearing.
Cryptostablecoins
Stripe, Visa and over 140 other businesses to launch stablecoin to rival Tether and Circle
By Camila Grigera NaónJune 30, 2026
3 hours ago
Should you go to work during a heat wave? Your productivity suffers, and GDP tanks when it’s hot
Environmentclimate change
Should you go to work during a heat wave? Your productivity suffers, and GDP tanks when it’s hot
By Catherina GioinoJune 30, 2026
14 hours ago
Target worker stocks shelves
SuccessJobs
Target is starting to track employees’ unexcused lateness and absences with a points system—and if they rack up 12, they’re fired
By Emma BurleighJune 29, 2026
1 day ago
a
Commentary250 Years of Innovation
Atomic Industries CEO: America spent 60 years retreating from manufacturing. The next 100 are about building it back
By Aaron SlodovJune 29, 2026
1 day ago
green
RetailWorld Cup
France wearing green for the Statue of Liberty: inside the unusual interpretation of ‘national pride’ that makes World Cup jerseys
By Claire Rush and The Associated PressJune 28, 2026
2 days ago
Peter Rahal speaks on stage in front of a black and purple background.
RetailFood and drink
David Protein CEO says ‘diet trends are over’ because of GLP-1s: ‘What’s next is really hard to predict’
By Sasha RogelbergJune 28, 2026
2 days ago

Most Popular

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
1 day ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
6 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
3 days ago
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
AI
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
22 hours ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
3 days ago
Current price of oil as of June 29, 2026
Personal Finance
Current price of oil as of June 29, 2026
By Joseph HostetlerJune 29, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.