SodaStream's sparkling water makeover pays off

Meet the Keurig Hail Mary: Soda
Meet the Keurig Hail Mary: Soda

SodaStream's healthy makeover just might be paying off.

SodaStream (SODA), now marketed as a maker of sparkling water instead of soda, said Tuesday that its profits more than doubled in the second quarter.

The do-it-yourself beverage company's carbonator refills hit an all-time high and sparkling water starter kit shipments climbed. SodaStream described it as a "sharp acceleration" in sparkling water maker sales.

Wall Street gulped down the encouraging news, driving SodaStream stock as much as 19% higher on Tuesday to its highest level in nearly two years.

SodaStream helped start the at-home carbonated beverage craze and its stock price surged the first few years after going public in 2010.

Related: Goldman Sachs: Avoid stocks for next 3 years

But SodaStream's sales have been slumping for years and the stock remains a shell of its former self. The sales declines sparked concerns that SodaStream is just a fad and won't appeal to today's health-conscious consumers.

That's why SodaStream has sought to recast itself as a maker of sparkling water, rather than soda, which is generally associated with sugary drinks.

The company changed its logo and slogan -- "Love your water" -- to emphasize the shift.

"Our marketing programs aimed at increasing household penetration are resonating with consumers," SodaStream CEO Daniel Birnbaum said in a statement on Tuesday.

SodaStream is also branching out into beer. In May, the company released a make-your-own-beer machine in Germany and Switzerland. It's expected to launch in more markets later this year and 2017.

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