SodaStream struggles to keep afloat in bubbly water business

New York

SODASTREAM, the once-hot gadget for do-it-yourself sodas, is betting on the growing thirst for bubbly water to bring some sparkle back to its business.

And in an effort to tap into the interest for enhanced waters, the company last month unveiled a new line of fruit flavourings, such as pomegranate açaí, green tea lychee and yuzo mandarin, that users of its machines can add to water during the carbonation process.

"There is a blurring of the space between soda and water, and we're in the perfect position to capitalise on that," said Daniel Birnbaum, the company's chief executive.

Sales of water are increasing strongly, according to data from Beverage Digest. Sales of bottled flat water in su…