SodaStream Markets a Soda Fountain for the Kitchen

When London gin distiller George Gilbey began selling British aristocrats do-it-yourself gadgets to carbonate tap water in 1903, the emphasis was on function, not style. Even by 1955, when the first mass-market version was introduced, the soda machine resembled a miniature scuba tank. SodaStream International, a successor to Gilbey’s venerable enterprise, last year pumped up its marketing in the U.S. of sleek countertop versions. Buzz about the $80-$200 appliances, which can turn tap water into over 100 flavors of soda in refillable bottles, has helped drive up SodaStream’s share price 218 percent since its initial public offering eight months ago. “In 20 years,” says Chief Executive Officer Daniel Birnbaum, “the soda industry will not be the same.”

Persuading the masses to embrace homemade soda will take some doing. Getting people to buy the appliance is one thing; getting them to keep buying syrup refills and carbon dioxide canisters is another. As with razors, refills are where the real money lies. But men have to shave. They don’t have to drink soda.