US: Jones Soda posts Q3 loss as costs rise

By just-drinks.com editorial team | 9 November 2007

Jones Soda Co. has reported a drop in profits for its third quarter due to higher than expected promotional costs.

The Seattle-based beverage company said yesterday (8 November) that it has seen a net loss of US$1.5m, compared with a net profit of $194,774 from the previous year's third period.

Net revenue for the quarter rose 15.1% to $11.7m.

In a statement, the company said thatvits Q3 results were "negatively impacted" by higher than planned promotional allowances and slotting fees to aid its expansion into the CSD market, as well as the expense of hiring additional sales and marketing personnel.

Operating expenses for the third quarter net revenue rose to 52.1% from 36.8% last year.

Jones Soda president and CEO Peter van Stolk said: "While we have taken a number of important steps and investments to successfully position our company within the $70bn CSD market - including distribution of our product in over 15,000 retail locations across the US - we have not executed as well as we know we can.

"We are focused on driving more sales per door by broadening awareness of our canned business through more effective marketing and advertising programmes," van Stolk added.

Sectors: Soft drinks, Water