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

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

The little sparkling flavored water company that could

Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
Claire Zillman
By
Claire Zillman
Claire Zillman
Editor, Leadership
Down Arrow Button Icon
May 16, 2014, 11:07 AM ET
Add Fortune on Google for similar content.

FORTUNE — “You need the moon and stars to align to get growth like this.” That’s what Kevin Klock, chief executive officer of beverage company TalkingRain, told Fortune on Wednesday.

In this scenario, the two things that lined up just right were Klock’s management of TalkingRain’s Sparkling Ice brand and consumers’ changing drinking habits. The end result was the $337 million in sales that Sparkling Ice – a zero calorie, carbonated water that comes in 17 flavors – recorded in the 12 months ending in April 2014, according to IRI, a Chicago-based market research firm, up from $2.7 million in 2009. It was the second-highest grossing sparkling water company, behind only Nestle.

If you haven’t heard of TalkingRain or Sparkling Ice, that’s not surprising. The company, which still has fewer than 300 employees, was founded in Seattle in 1992, and up until a few years ago, its products and customers had been isolated in the Northwest.

Prior to 2010, the company was made up of a mishmash of brands: sparkling spring water Essence, flavored flat water Twist, and vitamin-enriched Active Water all stood alongside Sparking Ice. None of them were selling all that well.

MORE: With Alibaba stake, SoftBank readies for U.S. invasion

Klock was senior vice president of the company then, but he was catapulted into the CEO role in May 2010 after the company’s CEO, president, and vice president of sales all left the company in a six-week span. After moving into the CEO role, Klock sought to address the company’s slacking sales and decided to focus on Sparkling Ice alone. His rationale was simple: “the brand had good margins and a strong following in the Northwest,” he says.

That decision prompted a redesign of Sparkling Ice, using its top-selling Orange Mango variety as a prototype for what it wanted all its flavors to be in terms of bottle design, taste, color, smell, and even the sound it made when opened.

But image wasn’t the only problem that needed fixing. If Sparkling Ice was going to be TalkingRain’s standalone product, the company needed to ramp up production to meet what it hoped would be increasing demand. By April 2012, sales of Sparkling Ice had reached $43 million, and that summer, the company expanded its manufacturing operations from one plant outside Seattle to six in the U.S. and one in Canada. This spring, it finalized its direct store delivery network, which is made up of Anheuser-Busch, Miller Coors, and independent distributors.

While Talking Rain was busy expanding its Sparkling Ice brand, Americans beverage preferences were a-changing. In short, U.S. consumers have been losing their lust for soda.

Cola carbonate volumes in the United States plunged from just over 28 billion liters in 2009 to 24.7 billion liters in 2013, according to Euromonitor. They’re projected to contract even further this year.

Slumping soda sales are often attributed to consumers’ growing concerns about sugar intake and calorie counts, but that’s not the only factor. After all, energy drinks, juices, and iced coffee – all loaded with sugar – are still quite popular.

Klock, whose Sparkling Ice is made with the artificial sweetener sucralose, argues that consumers have turned away from soda in search of something new, something different. A walk down the soda aisle will show you that there’s been very little innovation in the past few years, he says. There are many iterations of cola – diet, caffeine free, cherry flavored – but that’s about it.

MORE: Jennifer Aniston’s company launches Spanx for the face

“The human diet is always seeking out a new version of things we know,” says Harry Balzer, chief industry analyst for food and diet at NPD Group, a consumer research firm. Soda is still a mainstay of the American diet, he says. (During a typical two-week period ending in February 2014, 70% of all Americans reported consuming a carbonated soft drink at least once, according to NPD.)

Klock thinks Sparkling Ice’s zero calories, carbonation, and flavor — which he says is lighter and less syrupy than soda — can fill consumer’s needs. So do a lot of other brands that have introduced their own carbonated, flavored water in the past 13 months. Coca-Cola (KO) introduced its Fruitwater. PepsiCo (PEP) announced the relaunch of FlavorSplash. LaCroix started selling Spree. And Arizona Iced Tea partnered with talk show host Bethenny Frankel, who has a line of low-calorie cocktails, to launch Skinnygirl Sparklers.

These brands are certainly onto something. Sales of carbonated bottled water grew from 600 million liters in 2009 to nearly 790 million in 2013, and they are projected to top 850 million liters this year.

“Consumers want a healthier beverage that’s not water,” Balzer says. “I have no doubt that the drink of the future is water that’s carbonated and flavored. I just don’t know what brand it’ll be.”

About the Author
Claire Zillman
By Claire ZillmanEditor, Leadership
LinkedIn iconTwitter icon

Claire Zillman is a senior editor at Fortune, overseeing leadership stories. 

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

Latest in

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
  • TikTok icon
  • YouTube icon

Latest in

Current price of gold as of July 21, 2026
Personal Financegold prices
Current price of gold as of July 21, 2026
By Danny BakstJuly 21, 2026
27 minutes ago
va
North AmericaWhite House
HUD suspends disaster funding to U.S. Virgin Islands housing authority, saying mismanagement has kept $1.3 billion from hurricane survivors
By Danica Coto and The Associated PressJuly 21, 2026
37 minutes ago
traffic
HealthAutos
Rich countries have cut road deaths by more than 30% in 30 years—but about 90% of fatal crashes now happen in poorer nations
By Mike Stobbe and The Associated PressJuly 21, 2026
39 minutes ago
bird
EnvironmentAnimals
The rare ‘great conservation success story’ is happening off New England as $10 million over 10 years brings back the quirky oystercatcher bird
By Michael Casey and The Associated PressJuly 21, 2026
56 minutes ago
kalshi
CryptoKalshi
Kalshi’s ‘chronically online’ war room figured out World Cup virality — and realized AI might be bringing back the monoculture
By Nick LichtenbergJuly 21, 2026
60 minutes ago
wilt
Arts & EntertainmentAuction
Gen Z entrepreneur found a Wilt Chamberlain Lakers warm-up for $3.07 outside Portland — it was a $90,000 genuine article
By Claire Rush and The Associated PressJuly 21, 2026
1 hour ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
20 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
1 day ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
Future of Work
Warren Buffett says his $147 billion investing career was an accident: ‘I may be one of the 10 luckiest in the world’
By Sarah GlodekJuly 20, 2026
1 day ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 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.