A cult soda brand fights for survival
One-time beverage wunderkind Jones Soda, which slashed its staff this week, continues struggling to shake off the effects of an expansion gone wrong. Share your thoughts here.
From Matt, schuylerville I hope they can pull through. I enjoy their soda because I'd rather consume cane sugar instead of that that crap called high fructose corn syrup.
From Thad Schiele, Denver, CO I love jone's soda, and buy it whenever I buy soda at the supermarket, which isn't that often. I buy it in cans or bottles. I will continue to buy it as long as they use cane sugar instead of high fructose corn syrup. I hope they can figure things out with their distribution. I really enjoy the product.
From Rant Naples FL. Jones has a great product as long as they stay with glass bottles and cane sugar. I hate cans and plastic bottles
and high fructose syrup or any other sweetner than pure cane sugar. I ONLY buy Coca-Cola and Pepsi that is Black Marketed in from Mexico in 16 oz GLASS BOTTLES and with real CANE SUGAR.
From Anonymous So they put all OUR money into cans, went broker, now taking it all out of cans, still going broke–do any of these guys know what they're doing? I've lost thousands believing they did–feeling stupid as a rock in Oregon.
From liv.,mi. don,t like glass/can.I would buy more if it was plasic
From Chris, Portland, Oregon I used to dig the Jones Soda brand (although being diabetic I didn't usually drink it). I enjoy the labels designed with pictures that real people send in as opposed to multi-million dollar marketing firms that come up with crap (in fact, a picture my friend took of me actually ended up on a bottle apparently, but I've yet to see it).
Recently the humor website Something Awful posted a gallery of parody Jones soda bottles with made-up flavors. Jones Soda responded with legal threats to the webmaster, stating that "These unauthorized postings and images are damaging our client's business and product reputation and unfairly capitalizing on the hard-earned goodwill and reputation Jones Soda has developed."
Boo-Hoo. Somebody makes a Jim Jones joke and Photoshops it on a Jones Soda bottle and this will totally ruin Jones Soda's business? Shows how "hip" and "cool" they are when they alienate their demographic audience with a frivolous lawsuit (hasn't Mad Magazine basically done the same thing for DECADES?).
Good riddance if they go under.
From D, Michigan With so many Diabetic's they just need to ship out more sugar free
From pw, los angeles, ca Jones needs to learn the meaning of "parody." Here a little article that linked to this story:
http://preview.tinyurl.com/62jwsu
From Anthony, New York Jones does use sugar cane you dimwit
From Charlie Brash-Sorensen I wish the company luck in a tough marketplace that is getting harder by the day. The average consumer is worried. My daily x2 visit to Starbucks just got cut in half while I dragged out my closeted Gaggia and bought some beans of my own for the second cup. It just makes sense that the consumer is bagging trendy drinks and bottled water.
From Steve Evans, Rome, GA Wish they would offer their products without so much sugar – they have a couple of sugar-free products – but not in the flavors I would buy.
From Curt Fawcett Irvine, Ca Another Jim Cramer recomendation at $7.00 a share. Thanks Jimbo…….
From Ronald, Brunswick, MD I prefer cane sugar and no preservatices. That leaves NJ based Boylan, at least here in the mid atlantic.
From chicago illinois Jones lost its cache when they stepped into the Club stores like Walmart and others. Niche B-Gone.
You're canned!! Literally and visibly.
From Eric I like cane sugar instead of the typical high fructose corn syrup. Jones uses cane sugar, and that's a big plus.
On the other hand, they must be aiming solely for the kid-market. There's enough sugar in a Jones to gag a goat … or satisfy a 12-year-old …
How about knocking down the sugar level in some of the adult flavors?
From D. Miller, Bow, NH I would like to see Jones push their cola. While my kids like the variety Jones offers, their cola is excellent. It would be good to see it in bottles, but priced more moderately. It is disheartening to walk into a store and see such monsterous displays of the competition, but wonder if you can find a Jones cola.
From Stacey, Boston, MA Jones Soda isn't experiencing anything that every other brand in the beverge product category isn't experiencing. They are a solid brand that has found a unique niche in a saturated market. What may seem like mistakes and failures are only highlighted due to the down economy. Chances are that if the economy were in good shape, no one would even notice or care that Jone's Soda ventured into canned products. I agree that this was a stray from their brand identity but it is not something that they can't overcome.
From Simon Ginsberg The comapny seems to have lost it innovation soul since Van Stolk and his charisma left. Loss of distribution in the latest press release sounds more like involuntary loss of distribution. Who, in this economy drops distributors?
….and is this CEO prepared to cut his own salary during this readjustment period…….the slide all year isn't a surprise…has anyone been reading between the lines …….sorry I didnt short it after Peter left.
From sarah jones i love their root beer – it has a unique taste, better than the other companies. hope to hear they survive all the financial chaos!!
From peter, bethesda, md Jones Soda is a great company and as a former shareholder that bought at $1.50 and sold at $24 over a year ago…I made my money and loved the company…I want it to survive…
From Catarino Silva sr. I think Jones soda will survive because the American people will no let them down,and help by showing their support for small business.
From Nicole, Dallas TX Perhaps America has finally had enough liquid birthday cake…
From wallace desjardins Ole jonesy is dead and won't be coming back. Soon the only place you will find bottles is in Seattle and if you are looking for the stock, try the Pink Sheets soon.
From Stu alderson, galesburg Illinois As of friday 10-10-08 at the close the stock price was a mere .75 per share. If you look at how much cash they had on hand from the last quarter you would see it was roughly .72 per hare. With projected sales revenue of 45 – 50 million this year and yes a quarterly loss for the last 5 quarters, with the changes they are implementing this could possibly be one of the best investments ever. I think I will watch this one closely. The products are unique, draw attention and are widely accepted as that. If they can continue to develop the core market and stay on track this could bring the losses back in line, even during a depression like we are seeing right now.
From jim, york pa Is it cane sugar that much more expensive than hfcs? I have just started buying Jones Soda exclusively (instead of Pepsi products), in cans, at a price point competitive with Pepsi.
At Walmart, they sell 2 8 packs for $5. A good deal. Sugar is much better for you than HFCS. I drink a good amount of soda, and I'm not going to pay too much more for sugar (as opposed to hfcs) soda.
From Anonymous I sure didnt know bug juice is made by a cult I wont be buying any more
From Rick Cain, OK Jones Soda costs too much. Make it cheap and continue to make it with sugar only, and you will get mass market appeal.
Top shelf soda is not something on peoples minds when the economy is taking a dump.
From janie, memphis, tn My nephew in college goes through a 12 pack of their cream soda every week. He isn't the only one who loves it. When you have good product, people will search it out.
From Steve Ray, Ooltewah, Tn I am a retailer and sell Jones Soda. I advertise it as a different soda sold at a different kind of place. (I own a real working service station.) People like the glass bottles and neat flavors. And the taste is great. I think they should put my picture on a bottle.
From Tom, Palo Alto, CA I know it's not directly relevant, but what ever happened to "Rat Bastard" root beer? Now that was a cool brand.
From Mike, Chandler, Az Jones soda has never suffered from a lack of creativity, innovation, or imagination. However, they have ALWAYS suffered from a severe lack of execution. Neither the founder/ceo or the board of directors employed accountability based management styles, and the results of that have been painfully visible in it's stock performance.
While the advisory board could be viewed as a step in the right direction, it should not be composed exclusively by members of Jones' distributor network. In a three-tier distribution system, the retailer becomes the most critical link to success as they are the point of purchase by the end user. In other words, if a product is not available for sale to the end user, it matters very little how unique their flavors are or how cool their packaging is. It would be wise for the new CEO to weight his advisory board heavily toward members of the retail community.
Having said that, until both the board of directors and the management begin integrating accountability into their management styles, any advice that they receive from an advisory board is going to have little impact on the performance of the company and it's stock performance.
From Eagle, Palm Coast, FL They need to point out they do not use high fructose corn syrup. That's a big plus.
From Anonymous My two cents:
From a brand marketing stand point Jones soda has a good visual niche. It stand out as a noticeable brand by use of the quirky names, clear bottles and brightly colored liquid, alongside on consumer submitted photos. In my opinion, the can soda version failed b/c the much of it's brand was the soda color and putting the soda in an opaque container weaken "the brand" —of eye catching brightly colored soda.
The main reason I feel that Jones soda is not doing as well as when they first started out is that strayed away from the original recipe of using sugar cane sugar instead of cane sugar. I realized that they still use cane sugar but a majority of the drink is sugar-free and it doesn't taste right. Plus the non-sugar substitute flavors aren't that good. I say, if Jones would like to compete with the healthier trends, then make a sugar-free and cane sugar of all the different flavors. They definitely lost me as a customer as a result of that. And I believe that most would agree with me that the artificial sweetener changes the taste of the drink and if your not to enjoy the drink your drinking then what the point of buying it? The jones soda is one of those brand that will sell but not like coke of pepsi. Jones soda is one of those brands that you would find in specific grocery stores or little cafe shops. The market audience is different between the the big commercial market and the cult market, made so by the product. So if Jones want to survive in an over saturated market, then they better understand there audience first.
From Reginald, Las Vegas NV It's expensive, bottom line. Boutique sodas can be expensive, but they'll never compete.
From Mark, NY, NY Since NYC is one of their key markets I would be delighted to add them to the largest upscale consumer culinary food event, TastingsNYC, at no charge. It would be a great opportunity to find new customers and trade contacts. The key to growing a brand is new customers and new distribution.
From debbie anchorage AK I want to buy this product. It uses cane sugar not corn syrup! Do you know how rare that is in a US soft drink?
From Alex, Durango, CO I buy Jones soda for the family when we are on long drives…it is a treat that my kids enjoy. They are young teens and I am 45.
If they put the CNN heros on the bottles I would buy even more!
The bottles are unique, differentiating the Jones product, helping to sell more.
Going with HellBoy and SinCity means I won't buy any!
From Ryan, Kansas City KS Maybe it has something to do with nobody wanting to pay $8-$15 for a 6 pack of soda.
From Marc, Las Vegas, NV 1. When a company is doing something successful, it should continue it.
2. If it wants to try something new in addition to the successful actions, like here introducing their soda in cans to an entirely new audience, it should be done as a PILOT on the side with very limited risk exposure, NOT on the scale Jones' founder did it. Then, should the Pilot fail, the cost can easily be absorbed and while you move on continuing what you're doing successfully.
3. From what happened it is clear that the company had no Board of Directors to keep the CEO and founder on his strategy or if existent, the Board bitterly failed in its responsibilities to do so. The Board of Directors DIRECTS and the executives EXECUTE. THAT keeps the company out of trouble, not the CEO thinking up and executing such major actions on his or her own. Unfortunately this exact problem, more so in small- and mid-sized companies, happens too often, even more so when the original founder is still the CEO.
4. As for what to do now: Investigate in each of the Divisions/Departments of the company exactly what ALL the successful actions were that caused the Affluence in the company in earlier years, and get EVER ONE of those successful actions implemented again.
5. I'm impressed by the co's Advisory Board, and glad to hear the CEO is listening to their advice. HOWEVER, point # 4 above should be observed FIRST. And any changes advised by the Advisory Board should go through and be approved by the Board, not the CEO acting alone or telling the Board what he's doing and they rubber stamp it.
From Brian, Texas High price is one component that has kept me from purchasing thier product. Another component is that I'm not willing to pay a steep premium for flavored sugar water. I think more and more Americans have come to these conclusions which is bad news for Jones soda.
From Blabrmouthcom, Phila Pa When you are an independent in the beverage industry and someone comes along to hand you a boatload of money, you take it. Then you can satisfy the people that made you what you are (the employees you just laid off come to mind) and now you have powerhouse behind you to help grow the brand.
What I don't understand is that there are so many examples of the right way and wrong way to be acquired in the beverage business that Jones just thought it could do it alone. Now it will be bought at a fire sale price and the brand will dissolve. So much for guarding your brand with your life!
From Adam, Melbourne, FL They need to align themselves with lifetyle marketing events/ media that appeal to their target market… Action Sports comes to mind for Gen-y and Gen-x in one shot!
From Jay, Paris, IL No wonder they are having trouble. Most cults drink Kool-Aid!
From Brigitte Canto, Washington I am a jones soda fan! I let my kids drink it in moderation because of the cane sugar in it. It is sad that I can't find it anywhere anymore. I will support this product if I can find it! It is also cool that they think outside the box. Hope you hang in there and continue to be creative. Brigitte from Puyallup, WA
From Robert, South Jersey What you need to do to increase sales is get into the flavored bottled water market. You have unique flavors, put them to bottled water and watch your profits explode! It's a healthy choice.
From Connor, Prior Lake, MN I don't know much about their stock performance, but I can say their cream soda is the best bar none. Yumm! I like most of their flavors and before they hit the big box retailer I'd do what I could to seek out retailers who sold Jones. I hope they stick around – cool brand, great soda.
From Courtney, Sarasota, FL I didn't know they were in trouble. I am glad now I purchased my Ron Paul Jones Cola! I will probably buy more now just in case I can't get anymore! It taste good and has cane sugar in it.
From brad bartlett Dallas, Texas Total Idiots. Sell my stock. Has anyone thought of going "natural" or "healthy". That is what people want.
From Tom K Peoria, IL I agree with Jones going back to their roots. They should have stayed out of cans and just produced products in glass and kept a low profile.
They would have been much better off. I have been selling soda beverages in glass bottles on the web for almost (10) years now and people like some of the old fashioned flavors that are coming back in glass bottles.
People also like some of the unique new products in glass. Jones should have stayed "hard to get" and they would have been much better off in the long run.
"If it plays in Peoria, it has to be good."
From wes Vancouver, Wa We all love Jones Soda it would be a shame to see the goofy bottles and good pop go to the way side!
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Some people are beyond stupid…if you want healthy, or natural, why are you purchasing a soft drink? America is the ideal place to sell this soft drink because it uses natural sweeteners (or at least it used to) so it could fake and appeal to the minutely concerned health conscious who still drink soda.
I hope they stick around. So much innovation in a market dominated by Coke and Pepsi who have no soul and are all about dominating little players and destroying as much hope for change or innovation as possible.
Long live you Jones… I hope what ever you're working on works out. Bring in Van Stolk's ideology again, Jones, you are just too old and "Coke" style to really understand this brand.
Poor choice of a new CEO