JSDA » Topics » Overview

These excerpts taken from the JSDA 10-K filed Mar 16, 2009.
Overview
 
We develop, produce, market and distribute a range of premium beverages. With the addition of Jones GABAtm in the first quarter of 2009, our premium beverages include the following six brands:
 
  •  Jones Pure Cane Sodatm, a premium carbonated soft drink;
 
  •  Jones 24Ctm, an enhanced water beverage;
 
  •  Jones GABAtm, a functional tea juice blend;
 
  •  Jones Organicstm, a ready-to-drink organic tea;
 
  •  Jones Naturals®, a non-carbonated juice & tea; and
 
  •  Whoop Ass Energy Drink®, a citrus energy drink.
 
We sell and distribute our products primarily throughout the United States (U.S.) and Canada through our network of independent distributors, which we refer to as our direct store delivery (DSD) channel, national retail accounts, which we refer to as our direct to retail (DTR) channel, as well as through licensing and distribution arrangements. We also sell various products on-line which we refer to as our interactive channel and sell soda with customized labels, wearables, candy and other items. In addition we are expanding our international business outside of North America and have entered the markets of Ireland, the United Kingdom (UK) and Australia through independent distributors.
 
Our company is a Washington corporation formed in 2000 as a successor to Urban Juice and Soda Company Ltd., a Canadian company formed in 1987. Our principal place of business is located at 234 Ninth Avenue North, Seattle, Washington 98109. Our telephone number is (206) 624-3357.
 
Overview
 
We develop, produce, market and distribute a range of premium beverages. With the addition of Jones GABAtm in the first quarter of 2009, our premium beverages include the following six brands:
 
  •  Jones Pure Cane Sodatm, a premium carbonated soft drink;
 
  •  Jones 24Ctm, an enhanced water beverage;
 
  •  Jones GABAtm, a functional tea juice blend;
 
  •  Jones Organicstm, a ready-to-drink organic tea;
 
  •  Jones Naturals®, a non-carbonated juice & tea; and
 
  •  Whoop Ass Energy Drink®, a citrus energy drink.
 
We sell and distribute our products primarily throughout the United States (U.S.) and Canada through our network of independent distributors, which we refer to as our direct store delivery (DSD) channel, national retail accounts, which we refer to as our direct to retail (DTR) channel, as well as through licensing and distribution arrangements. We also sell various products on-line which we refer to as our interactive channel and sell soda with customized labels, wearables, candy and other items. In addition we are expanding our international business outside of North America and have entered the markets of Ireland, the United Kingdom (UK) and Australia through independent distributors.
 
Our company is a Washington corporation formed in 2000 as a successor to Urban Juice and Soda Company Ltd., a Canadian company formed in 1987. Our principal place of business is located at 234 Ninth Avenue North, Seattle, Washington 98109. Our telephone number is (206) 624-3357.
 
Overview


 



We develop, produce, market and distribute a range of premium
beverages. With the addition of Jones
GABA
tm

in the first quarter of 2009, our premium beverages include the
following six brands:


 


































































  • 

Jones Pure Cane
Soda
tm,

a premium carbonated soft drink;
 
  • 

Jones
24C
tm,

an enhanced water beverage;
 
  • 

Jones
GABA
tm,

a functional tea juice blend;
 
  • 

Jones
Organics
tm,

a
ready-to-drink
organic tea;
 
  • 

Jones
Naturals
®,

a non-carbonated juice & tea; and
 
  • 

Whoop Ass Energy
Drink
®,

a citrus energy drink.


 



We sell and distribute our products primarily throughout the
United States (U.S.) and Canada through our network of
independent distributors, which we refer to as our direct store
delivery (DSD) channel, national retail accounts, which we refer
to as our direct to retail (DTR) channel, as well as through
licensing and distribution arrangements. We also sell various
products on-line which we refer to as our interactive channel
and sell soda with customized labels, wearables, candy and other
items. In addition we are expanding our international business
outside of North America and have entered the markets of
Ireland, the United Kingdom (UK) and Australia through
independent distributors.


 



Our company is a Washington corporation formed in 2000 as a
successor to Urban Juice and Soda Company Ltd., a Canadian
company formed in 1987. Our principal place of business is
located at 234 Ninth Avenue North, Seattle, Washington 98109.
Our telephone number is
(206) 624-3357.


 




Overview
 
We develop, produce, market and distribute a range of premium beverages. With the addition of Jones GABAtm in the first quarter of 2009, our premium beverages include the following six brands:
 
  •  Jones Pure Cane Sodatm, a premium carbonated soft drink;
 
  •  Jones 24Ctm, an enhanced water beverage;
 
  •  Jones GABAtm, a functional tea juice blend;
 
  •  Jones Organicstm, a ready-to-drink organic tea;
 
  •  Jones Naturals®, a non-carbonated juice & tea; and
 
  •  WhoopAss®, a citrus energy drink.
 
We sell and distribute our products primarily throughout the United States (U.S.) and Canada through our network of independent distributors, which we refer to as our direct store delivery (DSD) channel, national retail accounts, which we refer to as our direct to retail (DTR) channel, as well as through licensing and distribution arrangements. We do not directly manufacture our products but instead outsource the manufacturing process to third party bottlers and contract packers.
 
In September 2006, we entered into an exclusive manufacturing and distribution agreement with National Beverage Corp. (National Beverage) to manufacture and distribute Jones Soda 12-ounce cans to the more mainstream channels and in-store locations in an effort to expand our points of availability within all stores including the shelves that are normally restricted to national mainstream brands manufactured by companies such as The Coca-Cola Company and PepsiCo. Beginning in January 2007, National Beverage Corp. started selling Jones Pure Cane Soda to retailers in the grocery and mass merchant channels in the U.S. Through this arrangement, we identify and secure retailers across the U.S. for Jones Soda 12-ounce cans, and we are solely responsible for all sales efforts, marketing, advertising and promotion. Using concentrate supplied by Jones, National Beverage both manufactures and sells on an exclusive basis the products directly to retailers. Finally, we also sell various products on-line which we refer to as our interactive channel and sell customized soda, wearables, candy and other items.
 
Our products are sold in 50 states in the U.S. and 9 provinces in Canada, primarily in convenience stores, delicatessens, sandwich shops and selected supermarkets, as well as through our national accounts with several large retailers. We have focused our sales and marketing resources on the expansion and penetration of our products through our independent distributor network and national retail accounts in our core markets consisting of the Northwest, Southwest and Midwest U.S. and Canada, as well as targeted expansion into our less penetrated markets consisting of the Northeast and Southeast U.S. In addition we are expanding our international business outside of North America and have entered the markets of Ireland, the United Kingdom (UK) and Australia through independent distributors.


31


Table of Contents

Beginning in 2004, we launched our licensing business strategy as a method to extend our brand into non-alternative beverage products and non-beverage products. We currently have licensing arrangements with three companies. With these licensing agreements, we believe that we are able to partner with companies that will manufacture Jones related products and extend our Jones brand into select products that we feel enhance our brand image. We do not expect this business to be a material part of our operations in 2009.
 
Our business strategy is to increase sales by expanding distribution of our brands in new and existing markets (primarily within North America), stimulating consumer awareness and trial of our products leading to increased relevance and purchase intent of our brands. Our business strategy focuses on:
 
  •  expanding points of distribution for our products;
 
  •  creating strong alignment with our key distributors;
 
  •  developing innovative beverage brands and products;
 
  •  stimulating strong consumer demand for our existing brands and products, with primary emphasis in the U.S. and Canada;
 
  •  inviting consumers to participate in our brand through submission of photographs to be placed on labels through our interactive application of my Jones.com;
 
  •  licensing our brand equity for the creation of other beverage or non-beverage products; and
 
  •  licensing our patented custom-label process to non-competitive products.
 
In order to compete effectively in the beverage industry, we believe that we must convince independent distributors that Jones Pure Cane Sodatm is a leading brand in the premium soda segment of the alternative or New Age beverage industry. Additionally, as a means of maintaining and expanding our distribution network, we introduce new products and product extensions, and when warranted, new brands. In February 2009, we launched Jones GABA, our first line of beverage products containing Pharma GABA, offered in a 12-ounce can. We will market this tea and juice blended beverage by focusing on the benefits of enhanced focus and clarity that studies have shown GABA provides.
 
We have allocated significant resources in our efforts to launch Jones GABA in the first quarter of 2009. Our results with respect to Jones GABA depend in part on our ability to successfully launch Jones GABA and market the product’s ability to enhance levels of mental clarity and focus, as studies have shown. Jones GABA is our first entry into beverage products containing GABA and much of our success will depend on our ability to gain new points of distribution through our DSD channel. We must also be successful in developing DTR distribution for Jones GABA through existing DTR customers and obtain new listings with customers that currently do not have points of distribution. Jones GABA will be launched as a premium priced item and part of a new emerging category of functional beverages. The current economic environment may not support a premium priced beverage entry at the level of our expectations for the product line.
 
The beverage industry can be affected by macro economic factors, including changes in national, regional, and local economic conditions, employment levels and consumer spending patterns. The recent disruptions in the overall economy and financial markets as a result of the global economic crisis have adversely impacted our two primary markets: the U.S. and Canada. This has reduced consumer confidence in the economy and could negatively affect consumers’ willingness to purchase our products as they reduce their discretionary spending. Moreover, current economic conditions may adversely affect the ability of our distributors to obtain the credit necessary to fund their working capital needs, which could negatively impact their ability or desire to continue to purchase products from us in the same frequencies and volumes as they have done in the past. There can be no assurances that government responses to the disruptions in the financial markets will restore consumer confidence, stabilize the markets or increase liquidity and the availability of credit. If the current economic conditions persist or deteriorate, sales of our products could be adversely affected, collectability of accounts receivable may be compromised and we may face obsolescence issues with our inventory, any of which could have a material adverse impact on our operating results and financial condition.


32


Table of Contents

Based on our current plans and amounts expected to be generated from future operations, we believe that our cash and cash equivalents, and net cash provided by operations will be sufficient to meet our anticipated cash needs for working capital and capital expenditures through the end of fiscal 2009 and beyond. This will depend, however, on our ability to execute on our 2009 operating plan and to manage our costs in light of developing economic conditions and the performance of our business. We arrived at our revenue projections for our 2009 operating plan after careful consideration of the macroeconomic factors stemming from the global economic crisis, with an emphasis on our higher-margin, core products, including our Jones Pure Cane Soda glass bottle business. Further, we implemented cost containment measures in the fourth quarter of 2008 and early 2009, including reductions in workforce, to further align our cost structure with our revenue projections. Although we do not believe we are dependent on new product launches to generate sufficient cash flow from operations in 2009, we believe our new higher-margin product introductions in 2009, including the launch of Jones GABA during the first quarter, will help to enhance our sales growth into new markets and consumer groups. We intend to continually monitor and adjust our business plan as necessary to respond to developments in our business, our markets and the broader economy. Even with these measures, we do not anticipate reaching profitability in 2009. Refer to “Liquidity and Capital Resources” included in Item 7 of this Annual Report on Form 10-K.
 
Overview
 
We develop, produce, market and distribute a range of premium beverages. With the addition of Jones GABAtm in the first quarter of 2009, our premium beverages include the following six brands:
 
  •  Jones Pure Cane Sodatm, a premium carbonated soft drink;
 
  •  Jones 24Ctm, an enhanced water beverage;
 
  •  Jones GABAtm, a functional tea juice blend;
 
  •  Jones Organicstm, a ready-to-drink organic tea;
 
  •  Jones Naturals®, a non-carbonated juice & tea; and
 
  •  WhoopAss®, a citrus energy drink.
 
We sell and distribute our products primarily throughout the United States (U.S.) and Canada through our network of independent distributors, which we refer to as our direct store delivery (DSD) channel, national retail accounts, which we refer to as our direct to retail (DTR) channel, as well as through licensing and distribution arrangements. We do not directly manufacture our products but instead outsource the manufacturing process to third party bottlers and contract packers.
 
In September 2006, we entered into an exclusive manufacturing and distribution agreement with National Beverage Corp. (National Beverage) to manufacture and distribute Jones Soda 12-ounce cans to the more mainstream channels and in-store locations in an effort to expand our points of availability within all stores including the shelves that are normally restricted to national mainstream brands manufactured by companies such as The Coca-Cola Company and PepsiCo. Beginning in January 2007, National Beverage Corp. started selling Jones Pure Cane Soda to retailers in the grocery and mass merchant channels in the U.S. Through this arrangement, we identify and secure retailers across the U.S. for Jones Soda 12-ounce cans, and we are solely responsible for all sales efforts, marketing, advertising and promotion. Using concentrate supplied by Jones, National Beverage both manufactures and sells on an exclusive basis the products directly to retailers. Finally, we also sell various products on-line which we refer to as our interactive channel and sell customized soda, wearables, candy and other items.
 
Our products are sold in 50 states in the U.S. and 9 provinces in Canada, primarily in convenience stores, delicatessens, sandwich shops and selected supermarkets, as well as through our national accounts with several large retailers. We have focused our sales and marketing resources on the expansion and penetration of our products through our independent distributor network and national retail accounts in our core markets consisting of the Northwest, Southwest and Midwest U.S. and Canada, as well as targeted expansion into our less penetrated markets consisting of the Northeast and Southeast U.S. In addition we are expanding our international business outside of North America and have entered the markets of Ireland, the United Kingdom (UK) and Australia through independent distributors.


31


Table of Contents

Beginning in 2004, we launched our licensing business strategy as a method to extend our brand into non-alternative beverage products and non-beverage products. We currently have licensing arrangements with three companies. With these licensing agreements, we believe that we are able to partner with companies that will manufacture Jones related products and extend our Jones brand into select products that we feel enhance our brand image. We do not expect this business to be a material part of our operations in 2009.
 
Our business strategy is to increase sales by expanding distribution of our brands in new and existing markets (primarily within North America), stimulating consumer awareness and trial of our products leading to increased relevance and purchase intent of our brands. Our business strategy focuses on:
 
  •  expanding points of distribution for our products;
 
  •  creating strong alignment with our key distributors;
 
  •  developing innovative beverage brands and products;
 
  •  stimulating strong consumer demand for our existing brands and products, with primary emphasis in the U.S. and Canada;
 
  •  inviting consumers to participate in our brand through submission of photographs to be placed on labels through our interactive application of my Jones.com;
 
  •  licensing our brand equity for the creation of other beverage or non-beverage products; and
 
  •  licensing our patented custom-label process to non-competitive products.
 
In order to compete effectively in the beverage industry, we believe that we must convince independent distributors that Jones Pure Cane Sodatm is a leading brand in the premium soda segment of the alternative or New Age beverage industry. Additionally, as a means of maintaining and expanding our distribution network, we introduce new products and product extensions, and when warranted, new brands. In February 2009, we launched Jones GABA, our first line of beverage products containing Pharma GABA, offered in a 12-ounce can. We will market this tea and juice blended beverage by focusing on the benefits of enhanced focus and clarity that studies have shown GABA provides.
 
We have allocated significant resources in our efforts to launch Jones GABA in the first quarter of 2009. Our results with respect to Jones GABA depend in part on our ability to successfully launch Jones GABA and market the product’s ability to enhance levels of mental clarity and focus, as studies have shown. Jones GABA is our first entry into beverage products containing GABA and much of our success will depend on our ability to gain new points of distribution through our DSD channel. We must also be successful in developing DTR distribution for Jones GABA through existing DTR customers and obtain new listings with customers that currently do not have points of distribution. Jones GABA will be launched as a premium priced item and part of a new emerging category of functional beverages. The current economic environment may not support a premium priced beverage entry at the level of our expectations for the product line.
 
The beverage industry can be affected by macro economic factors, including changes in national, regional, and local economic conditions, employment levels and consumer spending patterns. The recent disruptions in the overall economy and financial markets as a result of the global economic crisis have adversely impacted our two primary markets: the U.S. and Canada. This has reduced consumer confidence in the economy and could negatively affect consumers’ willingness to purchase our products as they reduce their discretionary spending. Moreover, current economic conditions may adversely affect the ability of our distributors to obtain the credit necessary to fund their working capital needs, which could negatively impact their ability or desire to continue to purchase products from us in the same frequencies and volumes as they have done in the past. There can be no assurances that government responses to the disruptions in the financial markets will restore consumer confidence, stabilize the markets or increase liquidity and the availability of credit. If the current economic conditions persist or deteriorate, sales of our products could be adversely affected, collectability of accounts receivable may be compromised and we may face obsolescence issues with our inventory, any of which could have a material adverse impact on our operating results and financial condition.


32


Table of Contents

Based on our current plans and amounts expected to be generated from future operations, we believe that our cash and cash equivalents, and net cash provided by operations will be sufficient to meet our anticipated cash needs for working capital and capital expenditures through the end of fiscal 2009 and beyond. This will depend, however, on our ability to execute on our 2009 operating plan and to manage our costs in light of developing economic conditions and the performance of our business. We arrived at our revenue projections for our 2009 operating plan after careful consideration of the macroeconomic factors stemming from the global economic crisis, with an emphasis on our higher-margin, core products, including our Jones Pure Cane Soda glass bottle business. Further, we implemented cost containment measures in the fourth quarter of 2008 and early 2009, including reductions in workforce, to further align our cost structure with our revenue projections. Although we do not believe we are dependent on new product launches to generate sufficient cash flow from operations in 2009, we believe our new higher-margin product introductions in 2009, including the launch of Jones GABA during the first quarter, will help to enhance our sales growth into new markets and consumer groups. We intend to continually monitor and adjust our business plan as necessary to respond to developments in our business, our markets and the broader economy. Even with these measures, we do not anticipate reaching profitability in 2009. Refer to “Liquidity and Capital Resources” included in Item 7 of this Annual Report on Form 10-K.
 
Overview


 



We develop, produce, market and distribute a range of premium
beverages. With the addition of Jones
GABA
tm

in the first quarter of 2009, our premium beverages include the
following six brands:


 


































































  • 

Jones Pure Cane
Soda
tm,

a premium carbonated soft drink;
 
  • 

Jones
24C
tm,

an enhanced water beverage;
 
  • 

Jones
GABA
tm,

a functional tea juice blend;
 
  • 

Jones
Organics
tm,

a ready-to-drink organic tea;
 
  • 

Jones
Naturals
®,

a non-carbonated juice & tea; and
 
  • 

WhoopAss®,

a citrus energy drink.


 



We sell and distribute our products primarily throughout the
United States (U.S.) and Canada through our network of
independent distributors, which we refer to as our direct store
delivery (DSD) channel, national retail accounts, which we refer
to as our direct to retail (DTR) channel, as well as through
licensing and distribution arrangements. We do not directly
manufacture our products but instead outsource the manufacturing
process to third party bottlers and contract packers.


 



In September 2006, we entered into an exclusive manufacturing
and distribution agreement with National Beverage Corp.
(National Beverage) to manufacture and distribute Jones Soda
12-ounce cans to the more mainstream channels and in-store
locations in an effort to expand our points of availability
within all stores including the shelves that are normally
restricted to national mainstream brands manufactured by
companies such as The
Coca-Cola
Company and PepsiCo. Beginning in January 2007, National
Beverage Corp. started selling Jones Pure Cane Soda to
retailers in the grocery and mass merchant channels in the
U.S. Through this arrangement, we identify and secure
retailers across the U.S. for Jones Soda 12-ounce
cans, and we are solely responsible for all sales efforts,
marketing, advertising and promotion. Using concentrate supplied
by Jones, National Beverage both manufactures and sells on an
exclusive basis the products directly to retailers. Finally, we
also sell various products on-line which we refer to as our
interactive channel and sell customized soda, wearables, candy
and other items.


 



Our products are sold in 50 states in the U.S. and 9
provinces in Canada, primarily in convenience stores,
delicatessens, sandwich shops and selected supermarkets, as well
as through our national accounts with several large retailers.
We have focused our sales and marketing resources on the
expansion and penetration of our products through our
independent distributor network and national retail accounts in
our core markets consisting of the Northwest, Southwest and
Midwest U.S. and Canada, as well as targeted expansion into
our less penetrated markets consisting of the Northeast and
Southeast U.S. In addition we are expanding our
international business outside of North America and have entered
the markets of Ireland, the United Kingdom (UK) and Australia
through independent distributors.





31





Table of Contents






Beginning in 2004, we launched our licensing business strategy
as a method to extend our brand into non-alternative beverage
products and non-beverage products. We currently have licensing
arrangements with three companies. With these licensing
agreements, we believe that we are able to partner with
companies that will manufacture Jones related products and
extend our Jones brand into select products that we feel enhance
our brand image. We do not expect this business to be a material
part of our operations in 2009.


 



Our business strategy is to increase sales by expanding
distribution of our brands in new and existing markets
(primarily within North America), stimulating consumer awareness
and trial of our products leading to increased relevance and
purchase intent of our brands. Our business strategy focuses on:


 












































































  • 

expanding points of distribution for our products;
 
  • 

creating strong alignment with our key distributors;
 
  • 

developing innovative beverage brands and products;
 
  • 

stimulating strong consumer demand for our existing brands and
products, with primary emphasis in the U.S. and Canada;
 
  • 

inviting consumers to participate in our brand through
submission of photographs to be placed on labels through our
interactive application of my Jones.com;
 
  • 

licensing our brand equity for the creation of other beverage or
non-beverage products; and
 
  • 

licensing our patented custom-label process to non-competitive
products.


 



In order to compete effectively in the beverage industry, we
believe that we must convince independent distributors that
Jones Pure Cane
Soda
tm

is a leading brand in the premium soda segment of the
alternative or New Age beverage industry. Additionally, as a
means of maintaining and expanding our distribution network, we
introduce new products and product extensions, and when
warranted, new brands. In February 2009, we launched Jones
GABA,
our first line of beverage products containing Pharma
GABA, offered in a 12-ounce can. We will market this tea and
juice blended beverage by focusing on the benefits of enhanced
focus and clarity that studies have shown GABA provides.


 



We have allocated significant resources in our efforts to launch
Jones GABA in the first quarter of 2009. Our results with
respect to Jones GABA depend in part on our ability to
successfully launch Jones GABA and market the
product’s ability to enhance levels of mental clarity and
focus, as studies have shown. Jones GABA is our first
entry into beverage products containing GABA and much of our
success will depend on our ability to gain new points of
distribution through our DSD channel. We must also be successful
in developing DTR distribution for Jones GABA through
existing DTR customers and obtain new listings with customers
that currently do not have points of distribution. Jones GABA
will be launched as a premium priced item and part of a new
emerging category of functional beverages. The current economic
environment may not support a premium priced beverage entry at
the level of our expectations for the product line.


 



The beverage industry can be affected by macro economic factors,
including changes in national, regional, and local economic
conditions, employment levels and consumer spending patterns.
The recent disruptions in the overall economy and financial
markets as a result of the global economic crisis have adversely
impacted our two primary markets: the U.S. and Canada. This
has reduced consumer confidence in the economy and could
negatively affect consumers’ willingness to purchase our
products as they reduce their discretionary spending. Moreover,
current economic conditions may adversely affect the ability of
our distributors to obtain the credit necessary to fund their
working capital needs, which could negatively impact their
ability or desire to continue to purchase products from us in
the same frequencies and volumes as they have done in the past.
There can be no assurances that government responses to the
disruptions in the financial markets will restore consumer
confidence, stabilize the markets or increase liquidity and the
availability of credit. If the current economic conditions
persist or deteriorate, sales of our products could be adversely
affected, collectability of accounts receivable may be
compromised and we may face obsolescence issues with our
inventory, any of which could have a material adverse impact on
our operating results and financial condition.





32





Table of Contents






Based on our current plans and amounts expected to be generated
from future operations, we believe that our cash and cash
equivalents, and net cash provided by operations will be
sufficient to meet our anticipated cash needs for working
capital and capital expenditures through the end of fiscal 2009
and beyond. This will depend, however, on our ability to execute
on our 2009 operating plan and to manage our costs in light of
developing economic conditions and the performance of our
business. We arrived at our revenue projections for our 2009
operating plan after careful consideration of the macroeconomic
factors stemming from the global economic crisis, with an
emphasis on our higher-margin, core products, including our
Jones Pure Cane Soda glass bottle business. Further, we
implemented cost containment measures in the fourth quarter of
2008 and early 2009, including reductions in workforce, to
further align our cost structure with our revenue projections.
Although we do not believe we are dependent on new product
launches to generate sufficient cash flow from operations in
2009, we believe our new higher-margin product introductions in
2009, including the launch of Jones GABA during the first
quarter, will help to enhance our sales growth into new markets
and consumer groups. We intend to continually monitor and adjust
our business plan as necessary to respond to developments in our
business, our markets and the broader economy. Even with these
measures, we do not anticipate reaching profitability in 2009.
Refer to “Liquidity and Capital Resources” included in
Item 7 of this Annual Report on
Form 10-K.


 




This excerpt taken from the JSDA 10-Q filed Nov 10, 2008.

Overview

We develop, produce, market and distribute “New Age” or “Premium” beverages. We currently produce, market and distribute six beverage brands:

 

   

Jones Pure Cane Soda™, a “premium” soda;

 

   

Jones 24C™, an enhanced water beverage;

 

   

Jones Organics™, a ready-to-drink organic tea;

 

   

Jones Energy™, a citrus energy drink;

 

 

 

WhoopAss Energy Drink®, a citrus energy drink; and

 

 

 

Jones Naturals®, a non-carbonated juice & tea.

We currently sell and distribute our products throughout the United States, Canada and Australia through our network of independent distributors (our “Direct Store Delivery” channel, or DSD) and our national retail accounts (our “Direct To Retail” channel, or DTR), as well as through licensing and distribution arrangements.

In 2007, we entered the carbonated soft drink market (CSD) with the introduction of 12-ounce cans of Jones Pure Cane Soda, which are manufactured and distributed by National Beverage Corp. in grocery and mass merchant channels in the U.S. pursuant to an exclusive agreement we entered into with National Beverage in September 2006. Through this arrangement, we identify and secure various national and regional retailers across the United States for our premium carbonated 12-ounce soft drinks and 16-ounce energy drink products, and we are responsible for all sales efforts, marketing, advertising and promotion. Using concentrate supplied by Jones, National Beverage both manufactures and sells on an exclusive basis the products directly to retailers. National Beverage is responsible for the manufacturing, delivery and invoicing of the sales of our products in this channel.

With respect to our DSD channel, we have focused our sales and marketing resources on the expansion and penetration of our products through our independent distributor network in our core markets consisting of the Northwest, Southwest and Midwest U.S. and Western Canada, as well as targeted expansion into our less penetrated markets consisting of the Northeast and Southeast U.S. and Eastern Canada.

We launched our DTR business strategy in 2003 as a complementary channel of distribution to our DSD channel. Through these programs, we negotiate directly with national retailers, primarily food service-based businesses, to carry our products, serviced through the retailer’s appointed distribution system. Our DTR channel customers include, but are not limited to, Barnes & Noble, Panera Bread Company, Target Corporation, Cost Plus, Ruby Tuesday, SuperValu, Inc., Alaska Airlines and Sam’s Club.

 

16


Table of Contents
This excerpt taken from the JSDA 10-Q filed Aug 8, 2008.

Overview

We develop, produce, market and distribute “New Age” or “Premium” beverages. We currently produce, market and distribute six beverage brands:

 

   

Jones Pure Cane Soda™, a “premium” soda;

 

   

Jones 24C™, an enhanced water beverage;

 

   

Jones Organics™, a ready-to-drink organic tea;

 

   

Jones Energy™, a citrus energy drink;

 

 

 

WhoopAss Energy Drink®, a citrus energy drink; and

 

 

 

Jones Naturals®, a non-carbonated juice & tea.

 

15


Table of Contents

We currently sell and distribute our products throughout the United States and Canada through our network of independent distributors (our “Direct Store Delivery” channel, or DSD) and our national retail accounts (our “Direct To Retail” channel, or DTR), as well as through licensing and distribution arrangements.

In 2007, we entered the carbonated soft drink market (CSD) with the introduction of 12-ounce cans of Jones Pure Cane Soda, which are manufactured and distributed by National Beverage Corp. in grocery and mass merchant channels in the U.S. pursuant to an exclusive agreement we entered into with National Beverage in September 2006. Through this arrangement, we identify and secure various national and regional retailers across the United States for our premium carbonated 12-ounce soft drinks and 16-ounce energy drink products, and we are responsible for all sales efforts, marketing, advertising and promotion. Using concentrate supplied by Jones, National Beverage both manufactures and sells on an exclusive basis the products directly to retailers. National Beverage is responsible for the manufacturing, delivery and invoicing of the sales of our products in this channel.

With respect to our DSD channel, we have focused our sales and marketing resources on the expansion and penetration of our products through our independent distributor network in our core markets consisting of the Northwest, Southwest and Midwest U.S. and Western Canada, as well as targeted expansion into our less penetrated markets consisting of the Northeast and Southeast U.S. and Eastern Canada.

We launched our DTR business strategy in 2003 as a complementary channel of distribution to our DSD channel, targeting large national retail accounts. Through these programs, we negotiate directly with large national retailers, primarily premier food service-based businesses, to carry our products, serviced through the retailer’s appointed distribution system. We currently have distribution arrangements with Barnes & Noble, Panera Bread Company, Target Corporation and Sam’s Club. Wal-Mart discontinued the sale of Jones Soda 12-ounce bottles during the quarter ended June 30, 3008.

We are a Washington corporation formed in 2000 as a successor to Urban Juice and Soda Company Ltd., a Canadian company formed in 1987. Our principal place of business is located at 234 Ninth Avenue North, Seattle, Washington 98109. Our telephone number is (206) 624-3357.

This excerpt taken from the JSDA 10-Q filed May 12, 2008.

Overview

We develop, produce, market and distribute “New Age” or “Premium” beverages. We currently produce, market and distribute six beverage brands:

 

 

 

Jones Pure Cane Soda, a “premium” soda;

 

 

 

Jones 24C, an enhanced water beverage;

 

 

 

Jones Organics, a ready-to-drink organic tea;

 

 

 

Jones Energy, a citrus energy drink;

 

 

 

WhoopAss Energy Drink®, a citrus energy drink; and

 

 

 

Jones Naturals®, a non-carbonated juice & tea.

We currently sell and distribute our products throughout the United States and Canada through our network of independent distributors (our “Direct Store Delivery” channel, or DSD) and our national retail accounts (our “Direct To Retail” channel, or DTR), as well as through licensing and distribution arrangements.

In 2007, we entered the carbonated soft drink market (CSD) with the introduction of 12-ounce cans of Jones Pure Cane Soda, which are manufactured and distributed by National Beverage Corp. in grocery and mass merchant channels in the U.S. pursuant to an exclusive agreement we entered into with National Beverage in September 2006. Through this arrangement, we identify and secure retailers across the United States for our premium carbonated 12-ounce soft drinks and 16-ounce energy drink products, and we are responsible for all sales efforts, marketing, advertising and promotion. Using concentrate supplied by Jones, National Beverage both manufactures and sells on an exclusive basis the products directly to retailers. National Beverage is responsible for the manufacturing, delivery and invoicing of the sales of our products in this channel.

With respect to our DSD channel, we have focused our sales and marketing resources on the expansion and penetration of our products through our independent distributor network in our core markets consisting of the Northwest, Southwest and Midwest U.S. and Western Canada, as well as targeted expansion into our less penetrated markets consisting of the Northeast and Southeast U.S. and Eastern Canada.

 

15


Table of Contents

We launched our DTR business strategy in 2003 as a complementary channel of distribution to our DSD channel, targeting large national retail accounts. Through these programs, we negotiate directly with large national retailers, primarily premier food service-based businesses, to carry our products, serviced through the retailer’s appointed distribution system. We currently have distribution arrangements with Barnes & Noble, Panera Bread Company, Target Corporation, Sam’s Club and Wal-Mart Stores, Inc.

We are a Washington corporation formed in 2000 as a successor to Urban Juice and Soda Company Ltd., a Canadian company formed in 1987. Our principal place of business is located at 234 Ninth Avenue North, Seattle, Washington 98109. Our telephone number is (206) 624-3357.

These excerpts taken from the JSDA 10-K filed Mar 17, 2008.

Overview

We develop, produce, market and distribute “New Age” or “Premium” beverages. We currently produce, market and distribute six beverage brands:

 

   

Jones Pure Cane Soda™, a “premium” soda;

 

   

Jones 24C™, an enhanced water beverage;

 

   

Jones Organics™, a ready-to-drink organic tea;

 

   

Jones Energy™, a citrus energy drink;

 

 

 

Whoop Ass Energy Drink®, a citrus energy drink; and

 

 

 

Jones Naturals®, a non-carbonated juice & tea.

Our business strategy is to increase sales by expanding distribution of our brands in new and existing markets, stimulating consumer trial of our products and increasing consumer awareness of, and brand loyalty to, our brands and products. Key elements of our business strategy include:

 

   

creating strong distributor relationships and key accounts;

 

   

stimulating strong consumer demand for our existing brands and products, with primary emphasis in the United States and Canada;

 

   

developing innovative alternative beverage brands and products; and

 

   

licensing our brand equity for the creation of other beverage or non-beverage products.

We currently sell and distribute our products throughout the United States and Canada through our network of independent distributors, which we refer to as our “direct store delivery” channel (DSD) and our national retail accounts, which we refer to as our “direct to retail” channel (DTR), as well as through licensing and distribution arrangements.

We also participate in the carbonated soft drink (CSD) industry through distribution and sales of our 12-ounce cans of Jones Pure Cane Soda through an exclusive arrangement with National Beverage Corp. in grocery and mass merchant channels in the U.S.

With respect to our “direct store delivery” channel (DSD), we have focused our sales and marketing resources on the expansion and penetration of our products through our independent distributor network in our core markets consisting of the Northwest, Southwest and Midwest U.S., and Western Canada, as well as targeted expansion into our less penetrated markets consisting of the Northeast and Southeast U.S., and Eastern Canada.

We launched our “direct to retail” business strategy in 2003 as a complementary channel of distribution to our DSD channel, targeting large national retail accounts. Through these programs, we negotiate directly with large national retailers, primarily premier food-service based businesses, to carry our products, serviced through the retailer’s appointed distribution system. We currently have distribution arrangements with Barnes & Noble, Inc., Panera Bread Company, Target Corporation, Sam’s Club and Wal-Mart Stores, Inc.

Beginning in 2004, we launched our licensing business strategy as a method to extend our brand into non-alternative beverage products and non-beverage products. We currently have licensing arrangements with two companies: Big Sky Brands, Inc. and J&J Snack Food Corp. With these licensing agreements, we believe that we are able to partner with companies that can manufacture Jones related-products and extend our Jones brand into select products that we feel enhance our brand image.

 

1


Table of Contents

In December 2006, we announced the transition from high-fructose corn syrup to pure cane sugar for all our bottled and canned products. Our co-packers commenced production of Jones Pure Cane Soda in January 2007 and it was launched in the second quarter of 2007.

We entered into Sponsorship Agreements with Football Northwest LLC (d/b/a Seattle Seahawks) and First & Goal, Inc. on May 22, 2007, and Brooklyn Arena LLC and New Jersey Nets Basketball, LLC on November 8, 2007 that provide us with the exclusive beverage rights for certain soft drinks as well as signage, advertising and other promotional benefits to enhance our brand awareness.

Our company is a Washington corporation formed in 2000 as a successor to Urban Juice and Soda Company Ltd., a Canadian company formed in 1987. Our principal place of business is located at 234 Ninth Avenue North, Seattle, Washington 98109. Our telephone number is (206) 624-3357.

Overview

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">We develop, produce, market and distribute “New Age” or “Premium” beverages. We currently produce, market and distribute six beverage
brands:

 







  

Jones Pure Cane Soda™, a “premium” soda;

 







  

Jones 24C™, an enhanced water beverage;

 







  

Jones Organics™, a ready-to-drink organic tea;

 







  

Jones Energy™, a citrus energy drink;

 







 

 

Whoop Ass Energy Drink®, a citrus energy drink; and

 







 

 

Jones Naturals®, a non-carbonated juice &
tea.

Our business strategy is to increase sales by expanding distribution of our brands in new and existing markets,
stimulating consumer trial of our products and increasing consumer awareness of, and brand loyalty to, our brands and products. Key elements of our business strategy include:

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

creating strong distributor relationships and key accounts;

 







  

stimulating strong consumer demand for our existing brands and products, with primary emphasis in the United States and Canada;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

developing innovative alternative beverage brands and products; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

licensing our brand equity for the creation of other beverage or non-beverage products.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">We currently sell and distribute our products throughout the United States and Canada through our network of independent distributors, which we refer to
as our “direct store delivery” channel (DSD) and our national retail accounts, which we refer to as our “direct to retail” channel (DTR), as well as through licensing and distribution arrangements.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">We also participate in the carbonated soft drink (CSD) industry through distribution and sales of our 12-ounce cans of Jones Pure Cane Soda through an
exclusive arrangement with National Beverage Corp. in grocery and mass merchant channels in the U.S.

With respect to our “direct
store delivery” channel (DSD), we have focused our sales and marketing resources on the expansion and penetration of our products through our independent distributor network in our core markets consisting of the Northwest, Southwest and Midwest
U.S., and Western Canada, as well as targeted expansion into our less penetrated markets consisting of the Northeast and Southeast U.S., and Eastern Canada.

FACE="Times New Roman" SIZE="2">We launched our “direct to retail” business strategy in 2003 as a complementary channel of distribution to our DSD channel, targeting large national retail accounts. Through these programs, we negotiate
directly with large national retailers, primarily premier food-service based businesses, to carry our products, serviced through the retailer’s appointed distribution system. We currently have distribution arrangements with Barnes &
Noble, Inc., Panera Bread Company, Target Corporation, Sam’s Club and Wal-Mart Stores, Inc.

Beginning in 2004, we launched our
licensing business strategy as a method to extend our brand into non-alternative beverage products and non-beverage products. We currently have licensing arrangements with two companies: Big Sky Brands, Inc. and J&J Snack Food Corp. With these
licensing agreements, we believe that we are able to partner with companies that can manufacture Jones related-products and extend our Jones brand into select products that we feel enhance our brand image.

STYLE="margin-top:0px;margin-bottom:0px"> 


1







Table of Contents


In December 2006, we announced the transition from high-fructose corn syrup to pure cane sugar for all
our bottled and canned products. Our co-packers commenced production of Jones Pure Cane Soda in January 2007 and it was launched in the second quarter of 2007.

FACE="Times New Roman" SIZE="2">We entered into Sponsorship Agreements with Football Northwest LLC (d/b/a Seattle Seahawks) and First & Goal, Inc. on May 22, 2007, and Brooklyn Arena LLC and New Jersey Nets Basketball, LLC on
November 8, 2007 that provide us with the exclusive beverage rights for certain soft drinks as well as signage, advertising and other promotional benefits to enhance our brand awareness.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Our company is a Washington corporation formed in 2000 as a successor to Urban Juice and Soda Company Ltd., a Canadian company formed in 1987. Our
principal place of business is located at 234 Ninth Avenue North, Seattle, Washington 98109. Our telephone number is (206) 624-3357.

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