SodaStream: A Smarter Way To Enjoy Soda?

At SodaStream International Ltd. (NASDAQ: SODA), the company believes that it has found a smarter way for consumers to enjoy soda. But is it really any better than Coke (NYSE: KO) or Pepsi (NYSE: PEP)?

“With SodaStream, you can transform ordinary tap water into soda in seconds,” Daniel Birnbaum, CEO of SodaStream, told CNBC this morning. “With this product, with this innovation, I don't see why anyone would continue to buy bottles and cans and continue to bring them home anymore.”

The reason, he says, is because of the hassle of buying traditional soda – you have to purchase cans and bottles, carry them home, store them, and then worry about recycling them. “It's a hazard to the environment,” he said.

SodaStream is currently being sold at Bed Bath & Beyond Inc. (NASDAQ: BBBY), Macy's (NYSE: M), Williams-Sonoma (NYSE: WSM), and other upscale retailers. Roughly 4,000 stores sell the product in the United States, with thousands of additional retailers selling it worldwide.

“We have four million users all over the world,” said Birnbaum, noting that SodaStream has found its way into 15% of households in Switzerland, and 25% in Sweden. “We're just scratching the surface of the United States.”