“SodaStream is trying to inspire a revolution in the way the world drinks,” explains Yoed Negri, Global Head of Digital Transformation, SodaStream International. “Our goal is not to improve recycling. Rather, what we call ‘pre-cycling’ – a case of addressing an earlier stage in the journey to eliminate the production of single use plastic bottles in the first instance.”
Meeting the environmental challenge
What makes such mass plastic production particularly challenging is the fact that the vast majority is not disposed of responsibly. Of the 8.3 billion tonnes of plastic products that have been produced to date, approximately 6.3 billion tonnes have become waste. Such statistics are shocking, but it is easy to see why they exist. Indeed, according to 2018 figures, 91.3% of all plastic waste generated in the US isn’t recycled.
Thankfully, certain companies are recognising the role that they must play in addressing plastic pollution, SodaStream stand as a prime example.
Operational transformation
Previously, SodaStream operated as a business-to-business enterprise, selling its products to third party retailers that would then market its products in their own stores. However, in recent years, the company has been pursuing a different path. It identified an opportunity to further its environmentally conscious impact by expanding from this B2B model, opting to explore a business-to-consumer-led approach.
“We began, establishing our own B2C website and launching in a handful of markets,” Negri explains. “When our new CEO was appointed in 2020, this focus became accelerated, and today we are live in 10 markets with direct-to-consumer sales.”
SodaStream is now on a journey of significant operational transformation that has already required holistic change. Take its marketing practices, for instance. The shift from B2B to B2C has allowed the firm to benefit from direct contact with consumers via a host of channels, from emails to SMS messages to push notifications, this new approach is unlocking a range of insights and benefits for the firm that enable it to better gauge the needs of its customers.
Sustainable business
SodaStream is also putting all its efforts into shortening the supply chain of its cylinders through local filling stations and operations. SodaStream carefully considers all station locations to ensure that the distance between its inputs and end users is as low as possible
“We also have a new dedicated digital transformation unit which I am leading,” Negri adds. “This is focused on getting to know our consumer and making sure that we are tailoring our offering to each of them individually.
“This is not about using our data to try to simply increase our volume of sales. It is about ensuring that each and every one of our consumers receives content that is relevant to them. That might be information about new products, or it might be advice on reducing environmental impact. Every consumer is different, and that is why we need to have bespoke segments.”