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SodaStream's CEO: Sparkling Water Industry Is A Scam, Smart Water Is Dumb

SodaStream's CEO: Sparkling Water Industry Is A Scam, Smart Water Is Dumb

Shares of Sodastream International Ltd (NASDAQ: SODA) rose nearly 200 percent throughout 2016, as the company saw signs of success from a radical shift in its business strategy.

The maker of a home beverage carbonation system re-positioned itself as a provider of healthy sparkling water rather than a replacement for sugary pop drinks.

Speaking to CNBC's Sara Eisen, SodaStream's CEO Daniel Birnbaum offered further insight into how the company navigated through rough waters.

The SodaStream Advantage

Birnbaum explained that consumers can transform water at home into sparkling water and the process is good for the environment since it eliminates wasted bottles and helps consumers drink more water at a cheaper price — and is fun to do.

He continued that SodaStream is the world's largest sparkling water brand at twice the size of Perrier and San Pellegrino.

"Those brands, what do they bring to the consumer?" he asked. "To me, it's a scam. The whole sparkling water industry as we know it today in those bottles and cans is a scam. It's probably the biggest marketing and advertising scam of all time. Consumers can get the sparkling water without the bottle."

Birinbaum went on to attack "Smart Water," which he described as being "dumb water." He noted that the water comes from municipal sources, which are the same sources that consumers access through their taps at home.

Looking forward to 2017, Birnbaum pledged not to change the company's strategy, which will be to remain a home sparkling water company.


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