SodaStream Adds Suds to Fizz With Launch of Beer Bar

Market parties by gulping up rising company shares in Tel Aviv, New York stock exchanges.

An employee packages carbon dioxide (CO2) cylinders at the SodaStream International Ltd. factory in Mishor Adumim, near Jerusalem, Israel, on Wednesday, Aug. 17, 2011.
Bloomberg

SodaStream, the Israeli maker of home fizzy-drink machines, is moving into suds as well.

The company launched in Germany and Switzerland on Monday a home beer system called the Beer Bar that uses sparkling water and a beer concentrate that it said would offer drinkers a "smooth authentic taste, and a hop-filled aroma" brewed in seconds. Its initial offering is a light beer called Blondie containing 4.5% alcohol by volume.

"Our core carbonation technology and distribution infrastructure provide a great platform for us to extend our business into this emerging category, and we choose to do so with a dedicated beer brand," CEO Daniel Birnbaum said.

Other markets are expected to launch the Beer Bar in late 2016 and 2017, the company announced.

Shares of SodaStream, which has been seeking to reposition itself into healthier alternatives to soda pop, rose 5.0% to $20.71. The stock's NASDAQ listing was trading around $20.25, up 3.7%, in early afternoon trading New York time.