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Why Sodastream's Business Model is so successful?

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Sodastream’s Company Overview

SodaStream is a leading global manufacturer and distributor of home carbonation systems. The company was founded in 1903 and is headquartered in Israel. SodaStream's primary product is a device that allows consumers to transform ordinary tap water into sparkling water and flavored carbonated beverages. The company's mission is to revolutionize the beverage industry by providing a convenient, innovative, and environmentally friendly alternative to traditional soda. SodaStream's products are available in over 60,000 retail stores across 45 countries. Business Model: SodaStream operates under a product sales business model, where revenue is generated from the sale of its various products. The company's product line includes home carbonation systems, exchangeable CO2 cylinders, reusable carbonation bottles, and a variety of flavors for making carbonated drinks. SodaStream's business model is built around the concept of sustainability and convenience, as their products allow consumers to make their own carbonated beverages at home, reducing the need for single-use plastic bottles and cans. Revenue Model: SodaStream's revenue model is primarily based on its home carbonation systems' sales and its consumables' recurring sales, which include CO2 refills and flavor mixes. The initial purchase of a SodaStream machine provides a steady stream of future income for the company, as consumers need to regularly purchase CO2 refills and flavor mixes to continue using the product. In addition to this, SodaStream also generates revenue from licensing its technology to other beverage companies. The company's strong global presence and consistent product innovation have contributed to its robust revenue growth over the years.

Country: Israel

Foundations date: 1903

Type: Subsidiary

Sector: Consumer Goods

Categories: Food & Beverages

Sodastream’s Customer Needs

Social impact:

Life changing: affiliation/belonging

Emotional: design/aesthetics, fun/entertainment, badge value, provides access

Functional: saves time, simplifies, reduces cost, quality, variety

Sodastream’s Related Competitors

Sodastream’s Business Operations

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Direct selling:

Direct selling refers to a situation in which a company's goods are immediately accessible from the manufacturer or service provider rather than via intermediate channels. The business avoids the retail margin and any extra expenses connected with the intermediaries in this manner. These savings may be passed on to the client, establishing a consistent sales experience. Furthermore, such intimate touch may help to strengthen client connections. Finally, direct selling benefits consumers by providing convenience and service, such as personal demonstrations and explanations of goods, home delivery, and substantial satisfaction guarantees.


A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Product innovation:

Product innovation is the process of developing and introducing a new or better version of an existing product or service. This is a broader definition of innovation than the generally recognized definition, which includes creating new goods that are considered innovative in this context. For example, Apple launched a succession of successful new products and services in 2001?the iPod, the iTunes online music service, and the iPhone?which catapulted the firm to the top of its industry.

Regular replacement:

It includes items that must be replaced on a regular basis; the user cannot reuse them. Consumables are products utilized by people and companies and must be returned regularly due to wear and tear or depletion. Additionally, they may be described as components of a final product consumed or irreversibly changed throughout the production process, including semiconductor wafers and basic chemicals.


Companies that manufacture fast-moving consumer goods and services and are committed to sustainability do ecological impact assessments on their products and services. While research-based green marketing needs facts, green storytelling requires imagination and location. Employees responsible for the brand definition and green marketers collaborate with product and service designers, environmental groups, and government agencies.

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