Focus on can launch lowers earnings at Jones Soda
November 02, 2006
by FoodBusinessNews.net Staff
SEATTLE — Net income at Jones Soda Co. fell significantly in the third quarter as the company poured its resources into preparing for the launch of its canned beverage business.
Net income for the period ended Sept. 30 totaled $194,774, down 77% from $846,286 in the year-ago quarter.
Net revenue for the quarter rose 15%, totaling $10,200,843.
Looking ahead, the company is focused on expanding its presence in the carbonated soft-drinks category, both through new relations with leading retailers such as Starbucks and Panera Bread Co. and by moving forward with the launch of its line of canned beverages, slated for 2007
"During the third quarter we announced a 5-year distribution and manufacturing agreement with National Beverage Corp. for 12-oz cans of Jones Soda and 16-oz cans of Jones Energy for the U.S. market beginning in 2007," said Peter Van Stolk, president and chief executive officer of Jones Soda. "After a successful 2-year licensing agreement with Target for Jones Soda cans, we now believe it is in the best interests of our company to expand our presence in the $66 billion C.S.D. category.
"In an effort to maximize our opportunities with our large network of beverage retailers across the country and best prepare for the upcoming launch we are hiring additional personnel, making upgrades to our infrastructure, and increasing our sales and marketing expenditures. We believe these investments will well position us to capitalize on the many prospects we believe exist for this business."