Jones Soda Co · CSE:JSDA
Jones Soda — Investor Presentation (May 2018)
18 slides from Jones Soda's investor presentation, May 10, 2018
Slide 1: May 10, 2018
May 10, 2018
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 m
Slide 3: Who We Are
• Founded in 1996 as the original national craft soda • Strong original focus in snowboard, skateboard and surfing culture • Asset light, co - pack model • Peak (2007): $39M in Revenue, $32.60 stock price. Missteps by former management lead to share value deterioration. • Jennifer Cue (CFO/COO 1995
Slide 4: Beverage Portfolio
Beverage Portfolio Glass Bottles Private Label Fountain Lemoncocco 4
Slide 5: Glass Bottles
Glass Bottles – 22 years old About the Product • Cane sugar, premium product • Classic flavors & exclusive Jones offerings (11 Flavors) • 20 - 25% Gross Margins • Provides cash flow to fund growth/higher margin initiatives Growth Plan for 2018: • Diversify account base, focus on classic flavors, gra
Slide 6: Private Label
• Target 20% Gross Margin • Minimal inventory risk • Premium shelf and cooler placement without slotting spend • Minimal below the line costs, high flow through margins • Co - Branded/private label 7 - Eleven glass bottle product in majority of US stores (8,000 total locations) Growth Plan for 2018:
Slide 7: Fountain
Fountain – 3 years old • Recurring revenue: larger accounts contracted • Jones can offer competitive pricing with better ingredients • Our target margins are 50% + and significantly accretive to our overall business • Approximately 2,000 accounts currently • Revenue up 123% YoY (Q1 - 18) • Currently
Slide 8: Fountain Initiatives – 7-Eleven
• Launched Green Apple on Fountain in Northwest (~400 stores) June 2017 • 2017 Slurpee Limited Time Offer (“LTO”): Orange & Cream and Fufu Berry in Northwest Growth Plans for 2018: • Awarded approximately 1,000 stores within the Northern California Region and across Canada in addition to the Northwe
Slide 9: Fountain Initiatives – 7-Eleven, cont.
Fountain Initiatives – 7 - Eleven, cont. 9
Slide 10: Lemoncocco
Lemoncocco – 2 years old • 1 SKU: easier to manage & focus • Non - carbonated all - natural blend of Sicilian lemons and coconut, 90 calories total • Retail chain locations up +350% since the end of 2016 • 40% gross margin target • ~3% of our total revenue in 2017 Growth Plan for 2018: • Focus in se
Slide 11: Lemoncocco – enhancements
Lemoncocco – enhancements 11
Slide 12: Lemoncocco Chain Listings
Lemoncocco Chain Listings Channel 2016 2017 Grocery 322 1,580 Food Service 50 93 Total (1) 372 1,673 GROCERY & RETAIL FOOD SERVICE (1) Strong reorders and consumer traction from existing customers. Total does not include independent accounts. 12
Slide 13: Executive Team
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 due to direct investment in company of ~$700K Steve Gress – EVP Sales (Since October 2017) • Previously President/CEO of
Slide 14: Jones Soda Co. Financials
*The difference between Adjusted EBITDA (a non - GAAP measure) and Net Loss (the most comparable GAAP financial measure) is the ex clusion of interest expense, income tax expense, depreciation & amortization expense and stock - based comp. . Jones Soda Co. Financials 14 Recent Financial Timeline 201
Slide 15: Summary of Opportunities
Summary of Opportunities Jones Soda • National brand, Cane sugar, premium product • Room for growth in craft soda similar to craft beer • Potential to leverage brand in Fountain • Utilize expertise for private label opportunities • Testing other extensions: Spiked Lemoncocco • Completely new “white
Slide 16: Appendix
Appendix 1¢ JONES
Slide 17: Craft Soda Outlook
Craft soda continues to grow in 2017, while rest of CSD industry continues to suffer declines. "This has legs. It has some good growth ahead of it. This is where the consumer is.“ – Michael Bellas, Chairman of Beverage Marketing “Craft soda addresses the competing desires of wellness and eating - ou
Slide 18: Premium Fountain Soda Outlook
Premium Fountain Soda Outlook Millennials spend disproportionately on experiences “Young Americans entering the workforce dine out at restaurants or buy take - out food 5 times a week reported Bankrate.com.” – June 2017 Fortune.com “If you’re taking fresh, culinary - driven food to a higher echelon,