netrashetty
Netra Shetty
Jones Soda Co. is a beverage company based in South Lake Union, Seattle, Washington.[1][2] It bottles and distributes soft drinks, non-carbonated beverages, energy drinks, and candy. Jones Soda is a carbonated soft drink that has many unusual flavors that are not offered by other soft drink makers.
Bottles of Jones Soda
Founded by Peter van Stolk in 1986,[3] Jones Soda Co started off as a beverage distributor in western Canada in the late 1980s. As the company grew, they gained significant knowledge of the beverage industry and decided to get into the market with alternative beverages as the Urban Juice & Soda Company. In 2000, the company officially changed its name to Jones Soda and moved from its headquarters in Vancouver, British Columbia to Seattle, Washington to improve U.S. sales. Jones products are also sold in the Republic Of Ireland.
Until 1995, the company was a distributor of other beverage lines such as AriZona Iced Tea and Thomas Kemper sodas in western Canada. The Urban Juice and Soda Company changed its name to Jones Soda Co. on August 1, 2000, most likely hoping to benefit from the fact that over 85% of the total revenues came from the Jones Soda brand.
In November 2006, Jones Soda announced that the company would be transitioning to use pure cane sugar (in the form of an inverted syrup) instead of high fructose corn syrup (HFCS) in its products. This is unusual in the carbonated soft drink category compared to other national brands that most often use corn syrup. On January 22, 2007, Jones Pure Cane Soda was launched in 12 ounce cans. By April 2007, all of the company's products switched to cane sugar, except for its energy drinks, which changed that fall.[4]
In March 2010, Jones Soda agreed to allow rival Reed's, Inc. to purchase the company at a steep discount, though later in the month Jones backed out of the deal.[5] The company named former Talking Rain president William Meissner as President and CEO.[6]
Jones Soda (NASDAQ:JSDA) is a small beverage company that makes several lines of “new age soda” that tailors to the recent trend of using healthy and natural ingredients. New age beverages are typically beverages which have not been around for long, uses natural ingredients and flavors, and consumption of which is thought to be healthful. Jones uses pure cane sugar, which some consumers believe is healthier and better tasting than cheaper high fructose corn syrup. The company earned $26 million in revenue but incurred a net loss of $10.5 million in 2009.[1]
Company Overview
History
Jones Soda started out as a distributor of Arizona Iced Tea, Thomas Kemper sodas, and other beverages in western Canada. The company created and launched Jones Soda with six flavors in 1996.
In October 2004, the company entered into the carbonated soft drinks (CSD) industry through the Jones Soda line under a two-year exclusive marketing and distribution agreement with Target Corporation. The CSD industry typically includes all soda products sold in 12-ounce cans and generally compete on price. Despite slowing growth of sub-1%, this sector remained attractive due to its huge volume which is estimated at is approximately $70.0 billion in total annual sales. These 12-ounce cans of Jones Pure Cane Soda line are manufactured, packed and distributed by National Beverage, following the expiration on the agreement with Target.
Business Segments[2]
Jones Soda currently has seven beverage brands:
Contents
1 Company Overview
1.1 History
1.2 Business Segments[2]
2 Business Growth
2.1 FY 2009 (ended December 31, 2009)[1]
3 Trends and Forces
3.1 Rising costs depress margins
3.2 Stadium and professional sports team relationships drive brand visibility
3.3 Innovative new product introductions drive the Jones culture
4 Competition
5 References
Jones Pure Cane Soda: Launched in November 1995, this line of 11 flavors comes in distinctive long-neck bottles with photos on the labels displaying urban images and is a leader in the Premium Soda (also known as all-natural soda) segment of the New Age beverage category. There is also a sugar free version of the line in 5 flavors.
Jones 24C: This is an enhanced water beverage with has 100% natural flavors and contains daily vitamin requirements. The company purchased the trademark rights to 24C. The drink is available in 6 flavors, either in 20-ounce PET bottles or powdered drink mix form.
Jones Organics: Jones Organics is a line of ready to drink organic tea with a mere 60 calories per serving. The line of six tea flavors is sweetened with organic cane sugar and comes in 14-ounce clear glass bottles with a fruit design on the front label.
Jones Energy: Launched in November 2001, Jones Energy is a citrus energy drink containing caffeine and other nutritional supplements such as vitamins. There are three different flavors available in two sizes, 16-ounce cans & 8.4-ounce "four-pack" carrier format.
Whoop Ass Energy Drink: Whoop Ass is another citrus energy drink containing riboflavin, niacin, vitamin B6 and thiamin. It was launched in October 1999 and is currently available in 8.4- ounce (250 ml) slim can and 16-ounce version.
Jones GABA: This is a line of beverage containing a naturally produced form of amino acid which exerts a number of anti-stress effects, among other benefits.
Business Growth
FY 2009 (ended December 31, 2009)[1]
Net sales fell 28% to $26 million.
The company incurred a net loss of $10.5 million an improvement over the $15 million loss in the previous year.
Trends and Forces
Rising costs depress margins
The company is facing increased costs in multiple areas. Co-packing and raw material costs are on the rise. The company is especially susceptible as it uses third party packers who can choose to terminate their arrangements with the company at any time. These ongoing increases in production costs are expected to exert continued pressure on the company’s gross margins. It is uncertain if these increases can be passed along to the company’s customers as the different brands mainly compete on price. As costs continue to rise, the company's margins would probably continue to fall, thus affecting profitability.
Stadium and professional sports team relationships drive brand visibility
The stadium and sports team relationships offer Jones an additional opportunity to connect with its customers. As mentioned before, Jones recently acquired exclusive beverage rights for the New Jersey Nets at its new Barclays Center as well as the Seattle Seahawks at Qwest Stadium.
Innovative new product introductions drive the Jones culture
Jones often introduces specialty beverages which are not meant to sell large quantities. These products are intended to create marketing buzz for the company. The gimmicky flavors used in limited edition variety packs helps Jones differentiate itself in a highly competitive industry and increases brand awareness. At Halloween, four-pack mini cans were introduced with Candy Corn, Gruesome Grape, Lemon Drop Dead and Strawberry Slime flavors. In addition, Turkey & Gravy Soda is now an annual item at Thanksgiving. Consumers might not drink these quirky flavors on a regular basis, but they would remember Jones and its atypical products once they have been drawn to give them a try.
Competition
Jones Soda competes mainly with Cadbury Schweppes & Thomas Kemper in the $16 billion New Age beverage industry and with Coca Cola, Hansen Natural and Pepsi, amongst others in the $70 billion carbonated soft drinks industry.
Dr Pepper Snapple Group (as the company is known, following the demerger of Cadbury Schweppes (CSG)) is third-largest refreshment beverage business in North America. As an integrated beverage business, it manufactures, markets and distributes more than 50 brands of carbonated soft drinks, juices, ready-to-drink tea, mixers and other beverages.
Thomas Kemper is a private company owned by Adventure Funds which brews mainly hand-crafted cane sugar and low calorie soda in five traditional flavors, root beer, vanilla cream, black cherry, orange cream and ginger ale.
Coca-Cola Company (KO) is the world's largest beverage company and beverages bearing its trademarks are sold in 200 odd countries. The company focuses on beverage creation and marketing. Hence, Coca-Cola manufactures the beverage base and syrups and sells them to bottling operations.
Pepsico (PEP) is a global snack and beverage company. The company manufactures, markets and sells a variety of salty, convenient, sweet and grain-based snacks, beverages and foods. The Company is organized into four divisions: Frito-Lay North America (FLNA), PepsiCo Beverages North America (PBNA), PepsiCo International (PI) and Quaker Foods North America (QFNA). While PepsiCo manufactures and sells concentrates to bottlers, the company also produces a line of beverages like fruit juices, energy drinks, dairy-based drinks and exotic teas. [3]
Hansen Natural (HANS) develops, markets, sells and distributes alternative beverages, non-carbonated ready-to-drink iced teas, children’s multi-vitamin juice drinks, Junior Juice juices and flavored sparkling beverages under the Hansen’s brand name. In addition, it also markets several other brands of energy drinks under different brands like Monster Energy, Lost Energy and Rumba brand energy juice. As with Jones, Hansen Natural also offers a line of premium, natural cane soda.
National Beverage develops and sells flavored beverages, including soft drinks, juices, sparkling waters and energy drinks. Its flagship brands, Shasta and Faygo, have over 50 flavor varieties each. National Beverage has a unique relationship with Jones Soda. As a result of an exclusive 5-year manufacturing and distribution agreement signed in September 2006, National Beverage produces and sells the 12-ounce canned Jones Soda and 16-ounces canned Jones Energy with the concentrate purchased from Jones. Sales efforts, marketing, advertising and promotion of Jones Soda remains the responsibility of Jones.
Cott Corporation is a non-alcoholic beverage company and a provider of retailer brand soft drink. In addition to carbonated soft drinks, the company’s product lines include clear, still and sparkling flavored waters, juice-based products, bottled water, energy drinks and ready-to-drink teas. Unlike Jones, Cott Corporation also manufactures private label soda for its various customers.
Bottles of Jones Soda
Founded by Peter van Stolk in 1986,[3] Jones Soda Co started off as a beverage distributor in western Canada in the late 1980s. As the company grew, they gained significant knowledge of the beverage industry and decided to get into the market with alternative beverages as the Urban Juice & Soda Company. In 2000, the company officially changed its name to Jones Soda and moved from its headquarters in Vancouver, British Columbia to Seattle, Washington to improve U.S. sales. Jones products are also sold in the Republic Of Ireland.
Until 1995, the company was a distributor of other beverage lines such as AriZona Iced Tea and Thomas Kemper sodas in western Canada. The Urban Juice and Soda Company changed its name to Jones Soda Co. on August 1, 2000, most likely hoping to benefit from the fact that over 85% of the total revenues came from the Jones Soda brand.
In November 2006, Jones Soda announced that the company would be transitioning to use pure cane sugar (in the form of an inverted syrup) instead of high fructose corn syrup (HFCS) in its products. This is unusual in the carbonated soft drink category compared to other national brands that most often use corn syrup. On January 22, 2007, Jones Pure Cane Soda was launched in 12 ounce cans. By April 2007, all of the company's products switched to cane sugar, except for its energy drinks, which changed that fall.[4]
In March 2010, Jones Soda agreed to allow rival Reed's, Inc. to purchase the company at a steep discount, though later in the month Jones backed out of the deal.[5] The company named former Talking Rain president William Meissner as President and CEO.[6]
Jones Soda (NASDAQ:JSDA) is a small beverage company that makes several lines of “new age soda” that tailors to the recent trend of using healthy and natural ingredients. New age beverages are typically beverages which have not been around for long, uses natural ingredients and flavors, and consumption of which is thought to be healthful. Jones uses pure cane sugar, which some consumers believe is healthier and better tasting than cheaper high fructose corn syrup. The company earned $26 million in revenue but incurred a net loss of $10.5 million in 2009.[1]
Company Overview
History
Jones Soda started out as a distributor of Arizona Iced Tea, Thomas Kemper sodas, and other beverages in western Canada. The company created and launched Jones Soda with six flavors in 1996.
In October 2004, the company entered into the carbonated soft drinks (CSD) industry through the Jones Soda line under a two-year exclusive marketing and distribution agreement with Target Corporation. The CSD industry typically includes all soda products sold in 12-ounce cans and generally compete on price. Despite slowing growth of sub-1%, this sector remained attractive due to its huge volume which is estimated at is approximately $70.0 billion in total annual sales. These 12-ounce cans of Jones Pure Cane Soda line are manufactured, packed and distributed by National Beverage, following the expiration on the agreement with Target.
Business Segments[2]
Jones Soda currently has seven beverage brands:
Contents
1 Company Overview
1.1 History
1.2 Business Segments[2]
2 Business Growth
2.1 FY 2009 (ended December 31, 2009)[1]
3 Trends and Forces
3.1 Rising costs depress margins
3.2 Stadium and professional sports team relationships drive brand visibility
3.3 Innovative new product introductions drive the Jones culture
4 Competition
5 References
Jones Pure Cane Soda: Launched in November 1995, this line of 11 flavors comes in distinctive long-neck bottles with photos on the labels displaying urban images and is a leader in the Premium Soda (also known as all-natural soda) segment of the New Age beverage category. There is also a sugar free version of the line in 5 flavors.
Jones 24C: This is an enhanced water beverage with has 100% natural flavors and contains daily vitamin requirements. The company purchased the trademark rights to 24C. The drink is available in 6 flavors, either in 20-ounce PET bottles or powdered drink mix form.
Jones Organics: Jones Organics is a line of ready to drink organic tea with a mere 60 calories per serving. The line of six tea flavors is sweetened with organic cane sugar and comes in 14-ounce clear glass bottles with a fruit design on the front label.
Jones Energy: Launched in November 2001, Jones Energy is a citrus energy drink containing caffeine and other nutritional supplements such as vitamins. There are three different flavors available in two sizes, 16-ounce cans & 8.4-ounce "four-pack" carrier format.
Whoop Ass Energy Drink: Whoop Ass is another citrus energy drink containing riboflavin, niacin, vitamin B6 and thiamin. It was launched in October 1999 and is currently available in 8.4- ounce (250 ml) slim can and 16-ounce version.
Jones GABA: This is a line of beverage containing a naturally produced form of amino acid which exerts a number of anti-stress effects, among other benefits.
Business Growth
FY 2009 (ended December 31, 2009)[1]
Net sales fell 28% to $26 million.
The company incurred a net loss of $10.5 million an improvement over the $15 million loss in the previous year.
Trends and Forces
Rising costs depress margins
The company is facing increased costs in multiple areas. Co-packing and raw material costs are on the rise. The company is especially susceptible as it uses third party packers who can choose to terminate their arrangements with the company at any time. These ongoing increases in production costs are expected to exert continued pressure on the company’s gross margins. It is uncertain if these increases can be passed along to the company’s customers as the different brands mainly compete on price. As costs continue to rise, the company's margins would probably continue to fall, thus affecting profitability.
Stadium and professional sports team relationships drive brand visibility
The stadium and sports team relationships offer Jones an additional opportunity to connect with its customers. As mentioned before, Jones recently acquired exclusive beverage rights for the New Jersey Nets at its new Barclays Center as well as the Seattle Seahawks at Qwest Stadium.
Innovative new product introductions drive the Jones culture
Jones often introduces specialty beverages which are not meant to sell large quantities. These products are intended to create marketing buzz for the company. The gimmicky flavors used in limited edition variety packs helps Jones differentiate itself in a highly competitive industry and increases brand awareness. At Halloween, four-pack mini cans were introduced with Candy Corn, Gruesome Grape, Lemon Drop Dead and Strawberry Slime flavors. In addition, Turkey & Gravy Soda is now an annual item at Thanksgiving. Consumers might not drink these quirky flavors on a regular basis, but they would remember Jones and its atypical products once they have been drawn to give them a try.
Competition
Jones Soda competes mainly with Cadbury Schweppes & Thomas Kemper in the $16 billion New Age beverage industry and with Coca Cola, Hansen Natural and Pepsi, amongst others in the $70 billion carbonated soft drinks industry.
Dr Pepper Snapple Group (as the company is known, following the demerger of Cadbury Schweppes (CSG)) is third-largest refreshment beverage business in North America. As an integrated beverage business, it manufactures, markets and distributes more than 50 brands of carbonated soft drinks, juices, ready-to-drink tea, mixers and other beverages.
Thomas Kemper is a private company owned by Adventure Funds which brews mainly hand-crafted cane sugar and low calorie soda in five traditional flavors, root beer, vanilla cream, black cherry, orange cream and ginger ale.
Coca-Cola Company (KO) is the world's largest beverage company and beverages bearing its trademarks are sold in 200 odd countries. The company focuses on beverage creation and marketing. Hence, Coca-Cola manufactures the beverage base and syrups and sells them to bottling operations.
Pepsico (PEP) is a global snack and beverage company. The company manufactures, markets and sells a variety of salty, convenient, sweet and grain-based snacks, beverages and foods. The Company is organized into four divisions: Frito-Lay North America (FLNA), PepsiCo Beverages North America (PBNA), PepsiCo International (PI) and Quaker Foods North America (QFNA). While PepsiCo manufactures and sells concentrates to bottlers, the company also produces a line of beverages like fruit juices, energy drinks, dairy-based drinks and exotic teas. [3]
Hansen Natural (HANS) develops, markets, sells and distributes alternative beverages, non-carbonated ready-to-drink iced teas, children’s multi-vitamin juice drinks, Junior Juice juices and flavored sparkling beverages under the Hansen’s brand name. In addition, it also markets several other brands of energy drinks under different brands like Monster Energy, Lost Energy and Rumba brand energy juice. As with Jones, Hansen Natural also offers a line of premium, natural cane soda.
National Beverage develops and sells flavored beverages, including soft drinks, juices, sparkling waters and energy drinks. Its flagship brands, Shasta and Faygo, have over 50 flavor varieties each. National Beverage has a unique relationship with Jones Soda. As a result of an exclusive 5-year manufacturing and distribution agreement signed in September 2006, National Beverage produces and sells the 12-ounce canned Jones Soda and 16-ounces canned Jones Energy with the concentrate purchased from Jones. Sales efforts, marketing, advertising and promotion of Jones Soda remains the responsibility of Jones.
Cott Corporation is a non-alcoholic beverage company and a provider of retailer brand soft drink. In addition to carbonated soft drinks, the company’s product lines include clear, still and sparkling flavored waters, juice-based products, bottled water, energy drinks and ready-to-drink teas. Unlike Jones, Cott Corporation also manufactures private label soda for its various customers.
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