Jones Soda Co · CSE:JSDA
Jones Soda — Shareholder Meeting (May 2016)
40 slides from Jones Soda's shareholder meeting presentation, May 11, 2016
Slide 1: Annual Shareholder Meeting Presentation May 11, 2016
An nual Shareholder Meeting Presentation May 11, 2016
Slide 2: Forward-looking statements
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 the Industry 2.2015 & Q1 2016 Financial Results – Jones Soda Co. 3.Review of the Brand Portfolio 4.2016 Sales & Marketing Initiatives
Slide 4: Review of the Industry
4 JONES [PES AAR 2 = ee SODA CO: REVIEW OF THE INDUSTRY Independent Since ‘96 y
Slide 5: Industry Facts: Global Liquid Refreshment Beverages
Industry Facts Global Liquid Refreshment Beverages $1 Trillion Dollar Industry (130 Billion Cases) CSDs Other (RTD Tea & Coffee, Water, Juice, Sports Drinks, etc.)
Slide 6: Industry Facts: US Liquid Refreshment Beverages
Industry Facts US Liquid Refreshment Beverages (15.8 Billion Cases) CSDs Other (RTD Tea & Coffee, Water, Juice, Sports Drinks, etc.)
Slide 7: Industry Facts: U.S. CSD Industry Volume Changes
Industry Facts – Size is $79.0 Billion U.S. CSD Industry Volume Changes 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 cons
Slide 8: Beverage Industry – Craft Sodas Bust Out!
Beverage Industry – Craft Sodas Bust Out! •Craft sodas currently make up 1% of total CSD category •Craft Soda category increases 30% in 2014 and 34% in 2015 •Opportunities exist in CSD category to strengthen brand trust, authenticity, and experience, particularly through trending natural and craft C
Slide 9: Industry Characteristics
Industry Characteristics •U.S. beverage industry significant size; CSDs alone $79.0 Billion •Overall yearly declines of CSDs in past decade; rate of decline has slowed •Larger players coming into the craft premium soda market •Energy drinks dominated by few, continue to show strong results •Health &
Slide 10: 2015 Financial Results
4. JONES POPS Bees} Tee SODA CO: 2015 FINANCIAL RESULTS Independent Since ‘96 ‘
Slide 11: Key Financial Highlights From 2015
Jones Soda Co. Key Financial Highlights From 2015 •Finalized the turnaround of the business and set up the company to focus on profitability and sales growth into 2016 •Operating under a sustainable cost structure •Achieved 1st year of case volume growth (3%) in 2015 since 2007 •Canadian dollar weak
Slide 12: Financial Summary for 2007-2015
Financial Summary for 2007-2015 $(20,000,000) $(10,000,000) $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 13: Financial Data Comparison - Years Ended 2011 - 2015
Financial Data Comparison - Years Ended 2011 - 2015 Year Ended December 31, 2011 2012 2013 2014 2015 Sales $17.4M $16.4M $13.7M $13.6M $13.6M Cases 1.30M 1.19M 1.04M 1.01M 1.04M Gross Profit $4.3M $4.5M $3.3M $3.0M $3.2M Gross Margin % 24.70% 27.40% 23.80% 22.20% 23.90% Operating Expenses $11.5M $7.
Slide 14: Capitalization of Company
Capitalization of Company As of December 31, As of March 18, 2012 2013 2014 2015 2016 (3) Outstanding Shares 38,530,416 38,710,416 40,972,394 41,314,894 41,314,894 Share Price $0.30 $0.48 $0.35 $0.38$ $0.68 Market Cap $11,559,125 $18,581,000 $14,340,338 $15,699,660 $28,094,128 CEO Ownership - Shares
Slide 15: Q1 2016 Results
Q1 2016 Results Q1 2016 Q1 2015 Sales $4.3M $2.9M Cases 0.39M 0.23M Gross Profit $1.2M $0.7M Gross Margin % 27.40 % 25.60% Operating Expenses $1.1M $1.0M Operating Income (Loss) $66K ($229K) Net Income $49K ($278K)
Slide 16: Review of the Brand Portfolio
REVIEW OF THE BRAND PORTFOLIO
Slide 17: Product Line-Up
Product Line-Up 1.Jones Soda – Pure Cane Premium Soda 2.Jones Zilch – Zero Calorie version of Jones Soda 3.Jones Stripped – Natural Sparkling Beverage 4.Jones on Fountain – Jones Cane and Zilch on Fountain 5.7-Select® x Jones Soda – Co-Branded CSD 6.Lemoncocco – New Brand
Slide 18: Jones Pure Cane Premium Soda
Jones Soda Lineup Jones Pure Cane Premium Soda •Made with pure cane sugar •Unique, colorful flavors as well as traditional flavors •Eye –catching labels with ever-changing consumer submitted photos •Glass bottle features convenient resealable cap Traditional Flavors Fun Flavors Select flavors also a
Slide 19: Jones Zilch Zero Calorie Soda
Jones Soda Zero Calorie Lineup Jones Zilch Zero Calorie Soda •Zero calorie Jones sweetened with Splenda •Two refreshing flavors •Convenient resealable caps •Also available in 12 oz can for convenience and portability
Slide 20: Jones Stripped
Jones Soda Lineup Jones Stripped •All natural sparkling beverage - no artificial colors or preservatives •Only 30 calories and 8 grams of sugar •Made with proprietary blend of 3 natural sweeteners including pure cane sugar, organic agave syrup and Stevia •Same great consumer-submitted photos on labe
Slide 21: Distribution - DSD
Distribution - DSD Jones Independent Distributor Network •Approximately 100 active distributor partners across North America in all 50 states •All of Canada •International distribution includes U.K., Ireland, Central America, South Africa
Slide 22: Key Jones Soda Retailers
4 JONES PES aes s 2 SS SODA CO: Key Jones Soda Retailers TARGET Sobeys = Walmart>\< azamas Publix. Independent Since ‘96
Slide 23: Jones Soda on Fountain
Jones Soda Lineup Jones Soda on Fountain •Launched in February 2015 •Unique combination of traditional and fun flavors •Sweetened with cane sugar (no HFCS) •Custom equipment incorporates consumer submitted photos on equipment •Amazing co-branded custom photo cup
Slide 24: 7-Eleven USA Jones Partnership
7-Eleven USA Jones Partnership •20 year relationship with 7-Eleven Canada •7-Eleven USA building premium high quality private label program •First premium co-branded product that 7-Eleven has created for its private label program; clear understanding of mutual millennial demographic Jones/7-Eleven •
Slide 25: 7-Select x Jones
4. JONES POPS Bees} Tee SODA CO: 7-Select® x Jones Independent Since ‘96 ‘
Slide 26: 7-Select x Jones Social Media Response
7-Select® x Jones Social Media Response
Slide 27: New Brand - Lemoncocco
New Brand - Lemoncocco Official Launch January 2016 •New premium non-carbonated drink made with a delightful blend of Sicilian lemon and coconut flavors •5 Ingredients, all natural •Naturally light and refreshing, Lemoncocco is the perfect afternoon or weekend drink inspired by the distinctive lemon
Slide 28: 2016 Sales and Marketing Initiatives
2016 SALES AND MARKETING INITIATIVES
Slide 29: Birthday Cake Soda
Birthday Cake Soda Celebrating Our 20th Birthday with Birthday Cake Soda! •On line contests for monthly prizes, including birthday presents and soda •Available as custom labeled flavor
Slide 30: Caps for Gear Consumer Program
Caps for Gear Consumer Program Consumers Redeem Caps for Great Prizes, Including GoPro Camera!
Slide 31: Point of Sale
Point of Sale All New POS Items Highlight Jones Soda Made With Cane Sugar! •Shoppable displays •Statics •Neck hangers •Pole signs •IRC coupons •Price circle •On premise items – coasters and door statics
Slide 32: Jones Soda Website and Online Presence
Jones Soda Website and Online Presence •Strong, active website engagement from loyal fan base •Photo gallery with over 1.5M consumer submitted images! •“myJones” custom labeled soda for special occasions such as birthdays, engagements, weddings, graduations….or just because its Jones Soda!
Slide 33: Social Media - Jones Soda At Its Best!
Social Media - Jones Soda At Its Best! Social media and fan interaction through Facebook, Pinterest, Twitter, Instagram and YouTube with very high engagement rates! Nearly one million Facebook fans! Over 14,000 followers and 47,000 posts with #Jonessoda on Instagram Over 16,000 followers on Twitter
Slide 34: Partnership with FIAT
Partnership with FIAT “Jonesin’ for a FIAT” •Entering our 4th year of partnership between Jones Soda and FIAT USA •North American photo contest to give away a FIAT 500x! •FIAT 500 purchasers received a Limited Edition FIAT 4 pack of Jones Stripped •Online and social media engagement
Slide 35: 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 •Goal to
Slide 36: Fountain Point of Sale Promotional Items
Fountain Point of Sale Promotional Items Highlight Unique Fountain Offering!
Slide 37: Lemoncocco Marketing
Lemoncocco Marketing Tent Cards, Umbrellas, Straws, Glasses, Shelf Talker, Cocktail Menu, Lemoncocco Car
Slide 38: Brand and Company Strengths
Brand and Company Strengths •Strong national brand awareness after 20 years •Solid distributor and retailer relationships •One of the original national premium craft sodas on the market •Operating Expenses streamlined; more variable •Recent new opportunities provide solid foundation for growth •Bran
Slide 39: Jones Soda Co. Mission Statement
Jones Soda Co. Mission Statement “We create innovative products that celebrate the individuality of our consumers and ourselves in a responsible and profitable way.
Slide 40: Q&A
4. JONES POPS Bees} Tee SODA CO: Q&A Independent Since ‘96 ‘