Sodastream Featured in African Business Review
As most of you know, I follow Sodastream News not just here in the United States but around the world. The African market for Sodastream has always been a bit unique and a source of some of the most interesting information about Sodastream. The African Business Review recently featured an article on Sodastream, which offers us a glimpse into how Sodastream works in other markets. The article includes some interesting history about Sodastream but I found the unique positioning of the brand in Africa to be of most interest. Here are some highlights from the article:
Sodastream
By being a cheaper, more environmentally friendly alternative to shop bought carbonated drinks, SodaStream hopes to grow its South African market share. As a global brand, SodaStream is the world’s largest manufacturer, distributor and marketer of home carbonation drink systems. The company was originally founded in the UK in 1903, eventually entering the South African market in the late seventies. In 1998, market competitor Soda-Club bought SodaStream and has gone on to develop the brand ever since. In November 2010, the company was listed on the Nasdaq stock exchange and today SodaStream operates in 41 countries worldwide.
UNIQUE SELLING POINT
According to Francois Dippenaar, General Manager at SodaStream South Africa, the brand’s unique positioning as the smart alternative to bottled carbonated beverages is a firm foundation for growth, backed by the benefits of offering great value for money, being the only truly environmentally friendly carbonated soft drink brand available and offering consumers convenience and unmatched flavor variety.
“A litre of soda from our system costs about R2 a litre versus R10 a litre for store bought soda,” says Dippenaar.
“SodaStream’s carbon footprint is just 10 percent of that of leading store bought carbonates. There is a lot of oil used in the process of producing plastic bottles. Post manufacture, the bottles are then transported vast distances – sometimes internationally and this creates carbon emissions. Eventually, the bulk of those plastic bottles end up in landfills and will take hundreds of years to decompose.
“Sodastream also offers the benefits of not having a tedious journey to the store to buy cold drinks, carry them home and find storage space for them. We also offer 23 flavours in South Africa (over 100 worldwide) with the added convenience of being able to make the product (fizz and flavor strength) the way you like it.”
ECO-FRIENDLY
SodaStream recently launched a new campaign with the concept “Help Free the World From Bottles,” a sustainable initiative aimed at reducing the amount of plastic and water customers consume. Dippenaar believes that the average household uses around 2,000 bottles and cans per annum, a number which could be significantly reduced by using SodaStream.
“For every machine sold, we donate $1 towards The Water Project, a not-for-profit organisation that raises money which is applied in building water wells to supply fresh drinking water to less fortunate communities in Africa and Asia.”
Dippenaar also points out that SodaStream is unique as it is a product which can actually make a positive contribution towards the environment and doesn’t cost a lot of money. He says: “With most “green” brands, you can make a contribution but it will invariably cost you more, especially in the short-term. Sodastream starts saving you money from the time you start using it. It’s an awareness thing and a conscious decision that the consumer makes.”…
The article goes on to talk about the future of Sodastream and the unique brand positioning in South Africa. The most unique aspect of their approach seems to be Sodastream’s program to set up local entrepreneurs in low-income communities with Sodastream machines. These entrepreneurs use the Sodastream to sell the product by the glass or by liter for customers providing their own refillable bottles.
When asked about the taste of Sodastream Products, Dippennar referenced the on-air CNBC taste test pitting Jim Cramer, possibly Sodastream’s biggest fan, against Sodastream’s biggest critic, journalist Herb Greenberg. The two faced off in a blind taste test pitting Sodastream against Coke to see which product would win out. Although I personally prefer Sodastream over any store bought soda, I was still a little surprised to see that both Cramer and Greenberg picked Sodastream over the soda giant. I’ve posted the video highlights below for anyone that hasn’t already seen the taste test challenge.
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