Jones Soda (JSDA) The Gateway Conference 2025 summary

Strategic vision and business transformation

• Transitioning from a craft soda company to a multi-category beverage portfolio, including core, modern, and adult segments.

• Focused on high-growth areas: reduced sugar, better-for-you, hemp, THC-infused, and ready-to-drink beverages.

• Leveraging nearly 30 years of brand equity and taste superiority, emphasizing real cane sugar and fewer preservatives.

• Leadership team with deep CPG experience, implementing cost controls and operational restructuring.

• Narrowing innovation to three main channels to drive depth and efficiency.

Product innovation and market expansion

• Core soda remains relevant with low and sugar-free options, supported by strategic partnerships like Bethesda's Fallout series.

• Modern soda targets a $2 billion market by 2029, with products like Pop Jones (prebiotic, low-calorie) and Fiesta (Latin-inspired flavors).

• Adult beverages, including Spiked Jones and THC-infused products, positioned for growth as consumer preferences shift from beer and wine.

• Club pack launch at Costco Southeast, with potential for national expansion based on performance.

• Distribution expanded into convenience stores (Circle K) and club channels, with strong omnichannel presence.

Financial performance and operational focus

• 2023 sales rebounded to over $19 million after a dip in 2022, but with significant EBITDA loss due to innovation investments.

• Gross margin improved to the 30% range, with ongoing efforts to reach mid-30s.

• EBITDA loss reduced by 47% in the first half of the year through cost-cutting and process improvements.

• Focus on sequential quarterly revenue growth and SG&A management.

• Foundation laid for sustainable growth, with support from an experienced board and management team.