Jones Soda Co · CSE:JSDA
Jones Soda — Shareholder Meeting (May 2015)
46 slides from Jones Soda's shareholder meeting presentation, May 14, 2015
Slide 1: 2015 Annual Shareholder Meeting
2015 ANNUAL SHAREHOLDER MEETING cap.tif
Slide 2: Safe Harbor Language
Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements that address future operating performance, the economy, events or developments that management expects or anticipates will or may
Slide 3: Agenda
Agenda 1.Review of Industry 2.Review of the Brand 3.Review of 2014 Results 4.2015 Sales Initiatives 5.2015 Marketing Initiatives 6.Q&A
Slide 4: Review of Industry
4. JONES POPS Bees} Tee SODA CO: REVIEW OF INDUSTRY Independent Since ‘96
Slide 5: Industry Facts
INDUSTRY FACTS Global Liquid Refreshment Beverages $1 Trillion Dollar Industry (130 Billion Cases) CSDs Other (RTD Tea & Coffee, Water, Juice, Sports Drinks, etc.) 39 Billion Cases Source: Beverage-Digest
Slide 6: Industry Response to CSD Declines
•Innovation in sweeteners that allow for production of better tasting and naturally sweetened diet and low calorie beverages •Innovative packaging, new pack sizes •Consumers are more health conscious, but taste matters! Industry Response to CSD Declines -3.5% -3.0% -2.5% -2.0% -1.5% -1.0% -0.5% 0.0%
Slide 7: Industry Characteristics
•CSD declines by only 0.9% in 2014 compared to decline of 3% in 2013 •Excluding diet, CSD volume was up 0.9% in 2014 •Larger players coming into the craft premium soda market •Fountain channel outperformed bottle/cans in 2014 CSD market •Energy drinks dominated by few, continue to show strong result
Slide 8: Review of Our Brand Portfolio
REVIEW OF OUR BRAND PORTFOLIO
Slide 9: Jones Soda
Jones Soda •Made with cane sugar •Traditional flavors and unique colorful flavors that “pop” in the cold box •Eye -catching labels with ever-changing consumer submitted photos •Convenient resealable cap •Connects with the consumer like no other premium soda brand!
Slide 10: Jones Zilch Zero Calorie Soda
Jones Zilch Zero Calorie Soda •Same great Jones Soda taste •Zero calories, sweetened with Splenda •Three delicious, refreshing flavors
Slide 11: Jones Soda – Ounce Cans
Jones Soda – 12 Ounce Cans 12oz Cans Clean.bmpRB_8pk_sm.jpgBerry Lemonade Can & Pack - Small.JPGCream Soda Can & Pack - Small.bmpStrawberry Lime Can & Pack.tif•Premium 12oz 8pk cans •Portable and convenient •Eye-catching consumer-submitted photos on cans
Slide 12: Jones Stripped
Jones Stripped •Made with naturally sourced flavors and sweeteners •Only 30 calories and 8 grams of sugar •Same great consumer-submitted photos on labels •Convenient resealable cap Stripped to the Bare Essentials
Slide 13: Jones Fountain
Jones Fountain •Officially launched in February 2015 •Provides for a cane sugar offering on fountain •Jones Cola, Jones Zero-Calorie Cola, Root Beer, Lemon Lime, Ginger Ale, Berry Lemonade, Green Apple •Co-branded with foodservice partners based on region and theme •Fountain equipment and cups desig
Slide 14: The Strength of the Jones Soda Brand
Brand and Company Strengths: •Solid national brand awareness after 19 years •Diversified portfolio of beverage products •Strong social media presence with nearly one million Facebook fans… and counting! •Innovative and exciting brand •Our consumers create our brand; photos on labels are our consumer
Slide 15: 2014 Financial Results
4. JONES POPS Bees} Tee SODA CO: 2014 FINANCIAL RESULTS Independent Since ‘96
Slide 16: Key Financial Highlights From 2014
Key Financial Highlights From 2014 •Finalized the turnaround and set up the Company to focus on profitability and sales growth •Third and fourth quarter achieved case sale growth over comparable periods •Revenue stability under the reduced cost structure •Continuing to foster distributor relationshi
Slide 17: Financial Summary for 2010-2014
Financial Summary for 2010-2014 $(10,000,000) $(5,000,000) $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 2010 2011 2012 2013 2014 Revenue Operating Expenses Net (Loss)
Slide 18: Financial Data – Comparison of Years Ended 2014 - 2012
Financial Data – Comparison of Years Ended 2014 - 2012 Year Ended December 31, 2014 Year Ended December 31, 2013 Year Ended December 31, 2012 Sales $13.6M $13.7M $16.4M Cases 1.0M 1.0M 1.2M Gross Profit Gross Margin % $3.0M 22.2% $3.3M 23.8% $4.5M 27.4% Operating Expenses $4.8M $5.1M $7.3M Operating
Slide 19: 2015 Initiatives
4. JONES POPS Bees} Tee SODA CO: 2015 INITIATIVES Independent Since ‘96
Slide 20: Strategy Overview
Strategy Overview •DSD •Jones Stripped •Fountain •International •Online Business •New Brand •New Opportunities
Slide 21: DSD Focus in Canada
DSD Focus in Canada Jones originated in Canada and continues to be a strong market and focus
Slide 22: DSD Focus in the US West
DSD Focus in the US West Go Hawks!
Slide 23: DSD Focus in the Midwest
DSD Focus in the Midwest U.S.A West Virginia Washington Oregon California Nevada Idaho Montana Wyoming Utah Colorado Kansas Oklahoma Missouri Arkansas Louisiana Mississippi Alabama Georgia Florida Tennessee Kentucky Virginia MD DE North Carolina South Carolina Texas New Mexico Arizona Nebraska Iowa
Slide 24: Regain Presence in the Northeast
Regain Presence in the Northeast New York City
Slide 25: Safeway Resets
Safeway Resets Single bottles in chilled beverage section Green Apple Single.jpgBerry Lemonade Single.JPGStrawberry Lime Single.JPG
Slide 26: Kroger Resets
Kroger Resets May 2015 Resets •First national listing to include broad Jones portfolio, with Jones Stripped high on shelf, pure cane sugar mid-shelf and 12oz cans on bottom shelf •Moving from 4 packs to single bottles •Flavors include Cream Soda, Green Apple, and Berry Lemonade, Jones Stripped Huckl
Slide 27: Costco San Diego Division
Costco San Diego Division •Third consecutive year for Variety Pack in the San Diego division of Costco in May 2015 •Featuring Cream Soda, Crushed Melon, Green Apple, and Grape
Slide 28: Costco Eastern Canada
part1Costco Eastern Canada •Six flavor Variety Pack for 55 club stores in Eastern Canada •Unique custom pack offered to highest velocity location - Newfoundland Variety Pack and Newfoundland Kitchen Party Pack
Slide 29: Natural Channel Strategy
stripped_mockup_CP.jpgstripped_mockup_HB.jpgNatural Channel Strategy
Slide 30: Jones Stripped Strategy
Jones Stripped Strategy Limited distribution in 2015 in select markets through natural channel and DSD hybrid http://upload.wikimedia.org/wikipedia/en/thumb/8/86/Kum_%26_Go_Logo.png/180px-Kum_%26_Go_Logo.pngWhole Foods Market logo.svgKeHEhttp://blogs.dallasobserver.com/unfairpark/HEB.jpghttp://ts4.m
Slide 31: Jones Stripped Test in Target
Jones Stripped Test in Target Select Target stores testing Jones Stripped in 4 flavors starting mid-2015 NEW_STRIPPED_OM_CH_HB_LL_LINEUP_RGB_WEB.jpg
Slide 32: Jones Fountain
Jones Fountain •Cane sugar soda option for fountain •Nation’s Restaurant News ad in May 16th edition •Showcasing Jones Fountain at the National Restaurant Association tradeshow in Chicago, May 16-19th
Slide 33: International Update
International Update Continued focus in Costa Rica, Panama, Nicaragua Continued focus in Ireland and the UK http://www.naturexp.com/CLIPPERPROGRAMS-8-30-05/Costa%20Rica-Panama/YKCP05_map.jpg
Slide 34: 2015 Marketing Initiatives
4. JONES POPS Bees} Tee SODA CO: 2015 MARKETING INITIATIVES Independent Since ‘96
Slide 35: Labeling Changed in 2015 to Highlight Cane Sugar Soda
Labeling Changed in 2015 to Highlight Cane Sugar Soda http://www.jonessoda.com/media/catalog/product/cache/1/image/194x448/2091d5c437d0f7138d5a951d6205592d/b/e/berrylemondaesoda.jpgNew
Slide 36: 2015 Caps for Gear Program
2015 Caps for Gear Program Year-long consumer program to redeem bottle caps for prizes! 2015 Prizes: 15 Caps: Jones Soda hat 20 Caps: Jones Soda t-shirt 50 Caps: Zip up hoodie 60 Caps: Lib Tech skate deck 75 Caps: Kinivo Bluetooth speaker 100 Caps: Jones Soda backpack 150 Caps: Spy Sunglasses 300 Ca
Slide 37: Point of Sale
Point of Sale •Shoppable displays •Statics •Neck hangers •Pole signs •IRC coupons •Price circle •On premise items – coasters and door statics AF829138-E705-4ADF-8AF6-8696388B6CDFAll new POS items highlighting Jones Soda made with cane sugar!
Slide 38: Jonesin' for a FIAT Contest – 2015
Jonesin’ for a FIAT Contest – 2015 Third Annual Partnership with FIAT USA •Photo contest June 1st through November 1st •Weekly prizes with Jones FIAT gear and myJones Stripped for FIAT 500 purchasers •Partnering in event activations 2015_JfaF_Fangate_R.jpg
Slide 39: Online Business
Online Business •Continuing to build an online presence to sell our core product line on our website •Marketing campaign for the myJones business oTradeshows: Wedding, Event Planning, Networking, Gifts oMonthly specials email blasts Bridal Party Photos-82.jpg
Slide 40: Easter Flavors - 2015
Easter Flavors - 2015 EasterWebSlider2015.pngOffered at Cost Plus World Markets and Other Independent Retail Accounts EasterBottlesInstagram.pngEasterTweet.PNG
Slide 41: "Made In", "Shot In", "Snapped In" Programs
“Made In”, “Shot In”, “Snapped In” Programs Launching May 15th made in necker.jpg•Campaigns featuring photos sent in by consumers in each region •Eye-catching bottle neck hangers promote the campaign in each region •Expanding to new markets next year!
Slide 42: Back to School Limited Edition Peanut Butter & Jelly Flavor
Back to School Limited Edition Peanut Butter & Jelly Flavor •Bringing back PB&J Limited Edition bottles for a second year in a row due to overwhelming positive consumer feedback •Online and retail promotions by the start of Back To School season, late summer to early fall PB&J Bottle.pngPBJ Front.jp
Slide 43: Jones Soda Mobile App and Product Locator
Jones Soda Mobile App and Product Locator With nearly one million Facebook fans, the Jones Soda Product Locator and Mobile App help loyal fans find more Jones Soda and submit photos for label entries!
Slide 44: Young Audiences
Young Audiences Young Audiences•Serving over 5 million children and youth each year; Young Audiences provides funding for public schools that have had arts education funding decreased or eliminated •With young Audiences, Jones has created a photo curriculum to teach kids about photography •Launched
Slide 45: Thank You for Participating in Our 2015 Annual Shareholder Meeting
THANK YOU FOR PARTICIPATING IN OUR 2015 ANNUAL SHAREHOLDER MEETING!
Slide 46: Q&A
4 JONES oP PSE Aske 2 STs SODA CO: Q&A Independent Since ‘96