The SodaStream Franchise
Franchise Marketing Systems worked with SodaStream to develop a territory model franchise system that would allow for more consistent, controlled distribution of the product line. SodaStream Professional (SSP) is a division of SodaStream International, (NASDAQ: SODA), a leading manufacturer, marketer and distributor of beverage carbonation systems.
SodaStream had revolutionized the beverage industry years ago by empowering people to make their own sodas and carbonated beverages at home. The brand went through a resurgence in the early 2000’s globally and with the increasing demand came the need for stronger, more structured distribution channels. Franchising and licensing arrangements were the vehicle chosen to facilitate this growth and expansion of the business model into new markets around the world.
The SodaStream franchise model is simple in that it only requires an office setting and the purchase of a minimum inventory requirement. Franchisees responsibilities consist of two functions, selling the products and brand primarily and secondarily, delivering service and support to customers in their respective market. Franchise Marketing Systems worked with SodaStream Professional management to develop a franchise model that would allow for both aspects of the business to be replicated efficiently.
SodaStream has driven the majority of their product sales through retail and ecommerce platforms selling the home version of the technology. One of the significant opportunities for growth was in the commercial side of the business. Selling redesigned versions of the equipment that could be used in office settings and in commercial applications. SodaStream professional was structured to do just that and targeted the commercial side of the business.
Due to the fact that the majority of SodaStream’s growth was international and widespread, the need for franchised distributors in these far reaching markets was even more evident. By locating strong franchises in new countries, the learning curve, necessary distributor and retail relationships and overall business relationships were much faster to take hold. SodaStream has always had a strong brand and certainly been considered the innovator in this niche of beverage production, the franchise channel allowed the business model to scale and monetize more effectively.
The franchise distribution channel has been effective for SodaStream and allowed for lean, global expansion opportunities.
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