US: Jones Soda plunges into red in 2007
Jones Soda Co. has reversed its full-year profits, despite a slight lift in sales in 2007.
The US-based company, which markets and distributes soft drink brands across North America, said yesterday (10 March) that its net profit for 2006 of US$4.6m became "unanticipated losses" last year, totalling $11.6m.
Sales for the year came in at $39.8m compared to $39.0m in 2006.
In detailing its initiatives for last year, which included the launch of functional beverage 24C and entry into the concentrate business, Jones Soda conceded that it had been "unable to execute the details of our expansion to a level that staisfies the team at Jones Soda".
Operating expenses in the year leapt to $20.8m from $13.2m, due in part to severance costs and increased expenses related to promotion and advertising, salary and benefits, and legal and audit fees.
The worst hit was taken in the final quarter, where net losses hit $10.2m from a profit of $2.1m in the corresponding period a year earlier.
"We need to do a much better job of executing our new initiatives at the store level and managing our internal systems," said interim CEO, Stephen Jones. "While we achieved much, we are not satisfied with our full year or fourth quarter financial results and we are confident we can do a better job executing our business going forward.
"We will continue to invest in the future of the business and pursue the strategic initiatives we began in 2007," Stephen Jones added. "As a result of the continued investments in 2008, we may incur losses on our way to solidifying a platform for future profitability."
- Chile's winemakers caught out by Brexit "disease"
- What's coming up in beer in 2017? - Comment
- The just-drinks Analyst - 2017 forecasts
- Interview - Pernod Ricard's luxury director
- What's coming up in wine in 2017? - Comment
- Suntory sends staff to fat camp - report
- Diageo Australia names new commercial head
- Pernod Ricard's Absolut Lime - NPD
- Former Stoli Group CEO joins Perfect Vodka owner
- US craft beer growth slows again - IRI figures
- Global vodka insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global Cognac insights - market forecasts, product innovation and consumer trends
- Global gin insights - market forecasts, product innovation and consumer trends
- Darker Than Before: Global Prospects for Brown Spirits