Jones Soda, the US craft soda and cannabis beverage producer, has laid out is plans to regain profitability with “innovation initiatives” that include cannabis shooters and a gut health “soda alternative” brand.
The company has been striving to regain profitability and has set out a product roadmap for the coming months that sees it launch brands across multiple categories.
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In its second quarter results ended 30 June, Jones Soda saw net losses increase 47% on 2023 to $1.5m.
“The decline in bottom line performance was primarily a result of our strategic investments in our innovations, where we have fully developed eight new lines of business from concept to market ready,” Jones Soda CEO David Knight told analysts following the release of the company’s second quarter results yesterday (13 August).
“In 2025, our focus is on activating our innovation, leaving ample room for upside opportunity and revenue and margin growth. We are really just starting our innovation roadmap.”
Jones Soda said that it has five product lines that will be launched in the second half of this year. Knight noted they had invested $600,000 into the “innovation initiatives”.
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By GlobalDataThe Seattle-based company will launch a “healthier soda alternative” that has a gut health focus called Pop Jones. The brand will have an initial rollout in September, followed by a national launch in early 2025.
“Similar products in the category include Olipop and Poppi,” Knight said.
“As popularity for these new sodas continues to grow amongst consumers, we knew we had to be in this high growth category. We have also had a significant number of food service and DSD [direct store delivery] distributors reaching out with interest in this product,”
The group is also launching a cola brand called Jones Nitrocross Cola in September. Additionally, it plans to release Fiesta Jones, a lower-calorie fruit flavoured beverage at the end of the year.
Speaking to Just Drinks earlier this year, Knight indicated the group intended to “[look] at other opportunities with a low-cal, no-cal play”.
The CSD producer noted the decline in losses and said as of 30 June, it had raised $3.2m in funding. Knight told investors the company was “very comfortable” with its liquidity position and that it had access to $2m in credit.
For the six months ended 30 June, Jones Soda reported a revenue of $12.1m, up from $8.6m year on year. Total net loss for the period were $2.7m, a loss increase of 17.3% on the previous year.
Mary Jones growth
Under the cannabis wing of the company, Mary Jones, the company also announced the release of 100mg cannabis-infused shooters in California. The shooters come in four flavours, which Jones Soda said can be used for sipping or mixing into beverages or cocktails.
“Mary Jones is our second growth driver is picking up momentum,” Knight told investors.
“In fact, our cannabis business generated approximately $1.2m in the second quarter of 2024, which represents 100% increase compared to last quarter and a 200% increase year-over-year. This was primarily driven by the success of our HD-9 products, a rebound in our California regulated products, and success in Canada.”
Last year, Jones Soda named David Knight as its president and CEO. Knight’s career includes roles at PepsiCo, where he was vice president of marketing at Gatorade International and vice president of marketing of Asia Pacific for Quaker Oats.
Jones Soda has been a player in US soda since its founding in 1995. The company markets and distributes craft soda under the Jones Soda and Lemoncocco brands. Jones Soda’s product range also includes a line of cannabis-infused beverages, which was launched under the brand Mary Jones in 2022.
