SodaStream had been in a state of decline for several years as a very small part of Cadbury Schweppes. Changes in consumer behaviour in central Europe presented the company with a turnaround opportunity.

The company was the world’s leading manufacturer of machines for making soft drinks in the home. Its products were in huge demand in Germany, Austria and Switzerland where consumers were carbonating tap water rather then buying bottled water. It had one major competitor but was at the forefront of this new market development.

The turnaround in trading, which was very recent and thus not particularly evident at a group level, provided the opportunity to acquire the business at a very low profit multiple. We backed an experienced management team with a clear strategy. Given the positioning of its main competitor, there was also a clear consolidation opportunity within the sector. Turnover and operating profit grew rapidly under Graphite ownership.