Delay in canned soda rollout hurts Jones Soda income
August 03, 2007
by Eric Schroeder
SEATTLE — A delay in the rollout of the company’s canned soft drinks hurt second-quarter income at Jones Soda Co. Net income for the period ended June 30 totaled $40,726, down sharply from $2,313,795 in the year-ago quarter.
Net revenue for the second quarter rose 30%, totaling $13,012,473.
"Although our second-quarter revenues increased by approximately 30% driven by double-digit sales gain in our core bottle business, our concentrate sales were below plan due to some delays in the launch of our C.S.D. product, which negatively impacted our gross margin and profitability," said Peter van Stolk, president and chief executive officer. "While we are disappointed in the initial rollout of our Jones Soda cans, we are focused on better managing our C.S.D. manufacturing and distribution process and we remain optimistic about the many long-term growth prospects of this business."
Mr. van Stolk said Jones Soda has secured distribution in more than 15,000 retail locations, including at Wal-Mart and Sam’s Clubs.