SodaStream is putting its faith in TV exposure

SodaStream is putting its faith in TV exposure

SodaStream's CEO has said that he is upping the company's TV ad spend after a controversial Christmas campaign helped drive record fourth-quarter sales.

The US$18m ad campaign, released in November, was black-balled in the UK and withheld from February's Super Bowl in the US. However, in a conference call with analysts yesterday (20 February) Daniel Birnbaum said TV remains the best way to target US consumers.

“We’ve improved dramatically our brand awareness in the US and now it is time to step it up and encourage consumers to take the next step and purchase the product,” he said earlier today (21 February). “So, we need TV for that. That’s why we also need to up the spend.”

Money will be invested in holidays such as Mother's Day, Father's Day and Memorial Day in the US, Birnbaum said. “Those are the special occasions where people would actually think about investing and buying a home soda maker and that’s where we focus a lot of our effort because we are driving out for penetration,” he added.

SodaStream's soda makers have now achieved 1% household penetration in the US, still some way short of its 20% penetration in some European markets. “We still have a long way to go and we certainly to invest a lot in the market and we have lots of potential of growth in future,” Birnbaum said.

Birnbaum was talking on a conference call following the release of SodaStream's full-year results.