Jones Soda Co · CSE:JSDA
Jones Soda — Shareholder Meeting (May 2019)
20 slides from Jones Soda's shareholder meeting presentation, May 9, 2019
Slide 1: Annual Meeting May 9, 2019
ANNUAL MEETING MAY 9, 2019 66 S. HANFORD ST., STE. 150, SEATTLE, WA 98134
Slide 2: Forward-looking statements
This presentation contains a number of “forward - looking statements” within the meaning of the of the Private Securities Litigati on Reform Act of 1995 that reflect management’s current views and expectations with respect to our business, strategies, products, future results and events, an d f inan
Slide 3: Who We Are
WHO WE ARE • Founded in 1996 as the original national craft soda • We stand for premium craft beverages (no high - fructose corn syrup, made with cane sugar) • Compete in a unique & growing segment of the beverage industry • Asset - light, co - pack model • Strategic initiatives underway – well - po
Slide 4: Craft Soda – A Growth Market
~$470M ~$490M ~$540M ~$730M 2014 2015 2016 2025E CRAFT SODA MARKET SALES¹ ¹Grand View Research. Craft Soda Market Analysis by Product Type, Target Consumer, Distribution Channel & Segment Forecasts. Nov, 2017. CRAFT SODA – A GROWTH MARKET • Consumer behavior is changing • “Better for you” ingredient
Slide 5: Our Beverage Portfolio
GLASS BOTTLES STRATEGIC PARTNERS FOUNTAIN LEMONCOCCO OUR BEVERAGE PORTFOLIO 5
Slide 6: Glass Bottles
GLASS BOTTLES • Cane sugar, premium product • 22 - year legacy • Classic flavors & exclusive Jones offerings (11 Flavors) • 20 - 25% gross margins • Provides cash flow to help fund growth/higher margin initiatives 6
Slide 7: Glass Bottles – New Flavors
GLASS BOTTLES – NEW FLAVORS • Introduced Jones Ginger Beer and two sugar - free flavors , Strawberry Lime and Cream Soda, in January 2019 • Switching to all natural flavors and colors in core lineup when possible 7
Slide 8: New Chain Accounts in 2019
NEW CHAIN ACCOUNTS IN 2019 • Walmart • Safeway/Albertsons • Circle K • QuikTrip 8
Slide 9: Fountain
FOUNTAIN • Leverage Jones ’ brand recognition & consumer acceptance to offer differentiated fountain experience • Launched in 2015 • Competitive pricing with better ingredients • Target margins >50% • Q1 - 19 sales up 52% year - over - year 9
Slide 10: Fountain – Early Adopters
FOUNTAIN – EARLY ADOPTERS 10 The ~2,000 early adapters (# of locations) (5) (6) (6) (6) (1,500) (20, converting to 140) (2) (6) (15) • Some 2019 Fountain adopters : • Zeeks Pizza (16 locations) • Yesway (150 locations) • Corporate, restaurant, convenience, grocery
Slide 11: Lemoncocco
LEMONCOCCO • Non - carbonated all - natural blend of Sicilian lemons and coconut, 90 calories total • Launched in 2016 • 1 SKU • Retail chain locations up 400+% since end of 2016 • 40% gross margin target • ~3% of our total revenue in Q1 - 19 • Q1 - 19 revenue up 13% from Q1 - 18 11
Slide 12: Lemoncocco – Enhancements
LEMONCOCCO – ENHANCEMENTS 12
Slide 13: Lemoncocco Chain Listings
CHANNEL 2017 2018 Grocery 1,580 1,662 Food Service 93 232 Total 1 1,673 1,894 GROCERY & RETAIL FOOD SERVICE ¹ Strong reorders and consumer traction from existing customers. Total does not include independent accounts. LEMONCOCCO CHAIN LISTINGS 13
Slide 14: Strategic Partners
STRATEGIC PARTNERS • Launched partnership with 7 - Eleven in 2016, “7 - Select crafted by Jones Soda” • Available in majority of U.S. stores (8,000 total 7 - Eleven locations) • Minimal inventory risk • Target 20% gross margin • Premium shelf & cooler placement without slotting spend • Minimal below
Slide 15: Our Growth Strategy
GLASS BOTTLES • Add new chain business as craft segment gains traction • Gradually reduce calories • Enhance portfolio FOUNTAIN • Focus in select geographic regions • Land increasingly larger QSRs and convenience chains • Currently in talks testing with several regional restaurant chains • Grow inde
Slide 16: Executive Team
JENNIFER CUE - CEO & DIRECTOR • July 2012 to present; oversaw complete turnaround of the company • Was COO/CFO from 1995 - 2006 at JSDA • Single largest shareholder in the company STEVE GRESS – EVP SALES • Previously President/CEO of Exclusive Distribution from 2006 - 2015; built Vita Coco in 5 boro
Slide 17: Key Stats: Trading Data and Financial Overview
1. Source: Capital IQ 2. TTM = trailing twelve months as of 3/31/19 3. MRQ = most recent quarter as of 3/31/19 Stock Price $0.79 $0.22/$0.98 52 WEEK LOW/HIGH 270,668 AVG. DAILY VOL. (3 MO.) 41.6M SHARES OUTSTANDING 82.2% PUBLIC FLOAT TRADING DATA @ (5/7/19 ) ¹ Market Cap $33.0M VALUATION MEASURES @
Slide 18: Strategy Highlights and Recent Financial Highlights
• Stabilization and growth of Jones bottle business • Growth of new portfolio initiatives • Prudently managing expenses – executive team on low - salary, equity - driven compensation package STRATEGY HIGHLIGHTS RECENT FINANCIAL HIGHLIGHTS • Fountain revenue grew 52% year - over - year in Q1 - 19 • L
Slide 19: Key Takeaways
KEY TAKEAWAYS • The original national craft soda, broad consumer acceptance • Changing consumer tastes & behavior setup strong market dynamics • Leverage Jones’ national recognition to drive high - margin fountain and bottle growth • Lemoncocco is a completely new, “white space” category • Strategic
Slide 20: Jones Soda contact and investor relations
INDEPENDENT, AUTHENTIC & ALTERNATIVE CRAFT BEVERAGES JONES SODA 66 S. Hanford St., Ste. 150 Seattle, WA 98134 206 - 624 - 3357 www.jonessoda.com INVESTOR RELATIONS Cody Slach 949 - 574 - 3860 JSDA@gatewayir.com 20