Jones Soda sustains $5.3 million loss in Q3
November 07, 2008
by Eric Schroeder
SEATTLE — Lower sales, primarily in direct-to-retail (D.T.R.) and direct-store distribution (D.S.D.) channels, contributed to a loss of $5,259,885 at Jones Soda Co. in the third quarter ended Sept. 30. Net sales fell 26% to $8,684,265.
"While sales were below plan, primarily in our D.S.D. and D.T.R. channels, and our earnings were lower than expectations, we executed several initiatives during the third quarter that have us better positioned for the future," said Stephen Jones, chief executive officer. "First, we improved our controls over promotion allowances, reducing our monthly spend by 48% in the current quarter versus the first half of 2008, and we expect this level to decline even further beginning next year.
"Second, we made the strategic decision last month to aggressively right size our operations by further reducing our headcount, which will yield annual savings of approximately $2.6 million. In conjunction with our reduction in staffing from July, these moves together will yield annual savings of approximately $3.3 million.
"Finally, we improved our general operating expenses, including restructure of advertising agency fees, which saves us $540,000 per year."