Summary of Jones Soda (JSDA) 2025 Conference Call Company Overview - **Company**: Jones Soda - **Location**: Seattle, Washington - **Founded**: 1987, approaching thirty years in business - **Categories**: Core, Modern, and Adult beverages [1][2] Strategic Vision and Mission - **Mission**: Redefine craft beverages with a multi-category portfolio including nostalgic sodas, prebiotics, and adult beverages [6] - **Strategic Focus**: Transition from a singular craft soda focus to a diversified beverage company, targeting high-growth segments like reduced sugar and THC-infused drinks [4][5] Market Trends and Opportunities - **Modern Soda Growth**: Expected to grow from $700 million in 2024 to $2 billion by 2029, driven by health-conscious consumers seeking alternatives to traditional sodas [15] - **Adult Beverages**: Anticipated growth in the adult beverage market, with projections indicating that by 2027, 1 out of every 5 dollars spent on alcohol will go to alternative adult beverages [16][17] - **Consumer Shift**: Notable decline in beer and wine sales, with consumers seeking flavorful alternatives [10][17] Product Innovations - **Core Soda**: Focus on health-conscious options, including zero-sugar variants and strategic partnerships (e.g., Nuka Cola collaboration) [11][12] - **Modern Soda**: Introduction of Pop Jones and Fiesta, targeting the convenience market with innovative flavors and packaging [12][13] - **Adult Beverages**: Launch of Spike Jones, a hard craft soda, and THC-infused products to cater to changing consumer preferences [16][18] Financial Performance - **Sales Trends**: Sales rebounded to over $19 million after a decline to less than $17 million in 2022, but significant EBITDA losses were noted due to high innovation spending [21][22] - **Gross Margin Goals**: Aiming to improve gross margins from 21% to the 30s, with a focus on cost control and operational efficiency [21][23] Management and Leadership - **New Leadership**: CEO Scott Harvey and CFO Brian Mills have been focusing on restructuring and cost control since joining the company [3][25] - **Board of Directors**: Comprised of experienced individuals from major CPG companies, providing strategic guidance and support [26][29] Distribution Strategy - **Expansion Plans**: Targeting growth in convenience stores and club channels, with successful launches in Costco and Circle K [12][20] - **Direct-to-Consumer**: Products available through Amazon and the company’s website, enhancing accessibility [20] Marketing and Brand Strategy - **Consumer Engagement**: Plans to leverage digital marketing and brand ambassadors to enhance consumer interaction and brand visibility [46][48] - **Market Positioning**: Acknowledgment of the competitive landscape with emerging brands, emphasizing the need for differentiation [49][50] Conclusion - **Future Outlook**: Jones Soda is positioned to evolve into a multi-category beverage company, focusing on innovation, consumer trends, and strategic partnerships to drive growth [30][31]

Core Insights - Jones Soda Co. has launched a limited-time 12-pack variety case in select Costco locations across the Southeast U.S. and Puerto Rico, expanding its club channel presence [1][2] - The 12-pack includes four popular flavors: Orange & Cream, Cream Soda, Green Apple, and Berry Lemonade, packaged in 12 oz glass bottles, aiming to attract both loyal customers and new shoppers [2][3] - The launch is part of a broader retail growth strategy, which includes diversifying the product portfolio with new offerings like Pop Jones and Zero Sugar formats to meet evolving consumer preferences [4] Strategic Regional Entry - The Southeast launch targets key Costco locations in Georgia, Florida, North & South Carolina, Tennessee, Alabama, and Puerto Rico, indicating a strategic entry into eight markets [3][7] - The CEO of Jones Soda Co. highlighted strong consumer demand for differentiated beverage options in the club channel, emphasizing the scalability of the brand in a premium multipack format [3] Growth Platform - The expansion into Costco is aligned with the company's strategy to grow its footprint in high-velocity retail environments, including grocery, specialty, convenience, and direct-to-consumer channels [4] - The company aims to enhance its market presence by leveraging its unique brand identity, which includes clean label credentials with real cane sugar and no high fructose corn syrup [8]