Jones Soda Co · CSE:JSDA
Jones Soda — Shareholder Meeting (May 2006)
44 slides from Jones Soda's shareholder meeting presentation, May 23, 2006
Slide 1: Jones Soda Co.
Exhibit 99.1 JONES SODA CO. May 2006
Slide 2: Forward Looking Statement
Forward Looking Statement Comments today may include forward-looking statements. Please keep in mind that any statements made by the Company during this presentation that look forward in time or include anything other than historical information, involve risks and uncertainties that may affect the C
Slide 3: Presenters
Presenters Peter van Stolk Chairman, CEO, and President
Slide 4: Jones Brand Creates an Emotional Connection
Jones Brand Creates an Emotional Connection The future for any Brand is to… Create an Emotional connection with its consumers.
Slide 5: Company Overview
Company Overview • Premium beverage company - - Jones Soda brand launched in 1996 • Five product lines addressing $16.9 billion New Age beverage market and $65.9 billion carbonated soft drink (“CSD”) market • Premium brand with strong customer loyalty • Unique marketing strategy generates high aware
Slide 6: Premium Portfolio of Products
Premium Portfolio of Products Premium Sodas Jones Naturals Launched in 2001 Jones Energy Jones Organics Jones Cans Launched in 2002 Sugar Free launched in 2004 Launched in 2004 Exclusive with Target Launched in 2005 Launched in 1996
Slide 7: Differentiated Sales & Marketing Strategy
Differentiated Sales & Marketing Strategy • “Customers pay for brands, whereas they buy products” • Target 12-24 year olds with grass roots brand imaging • Pillars of the Jones Brand – Alternative Accounts – Athletes – pro and amateur – RV Program – Event Sponsorship – Website • Total interaction wi
Slide 8: Growth Opportunities
Growth Opportunities Premium CSD Healthy Alternatives Web Strategy Seasonals Licensing Premium Soda Energy
Slide 9: Jones Premium Sodas
Jones Premium Sodas Premium Sodas • Premium Sodas have been sold in the North American marketplace for over 150 years • Stable category for growth
Slide 10: Premium Soda Portfolio
Premium Soda Portfolio Jones Soda Product Offering: Current Flavors: - Cream Soda - Tangerine - Root Beer - Blue Bubblegum - Orange & Cream - Lemon Drop - Cherry - Crushed Melon - Strawberry Lime - Berry Lemonade - MF Grape - Fruit Punch - Vanilla Cola - Fufu Berry - Watermelon Soda - Blueberry - Gr
Slide 11: Premium Soda Market Size
Premium Soda Market Size $16.9 Billion New Age Beverage Market PET Water 35% • Until recently Jones competed in a narrow niche of the $16.9 billion New Age Beverage market RTD Tea 16% Sports Drinks 18% Premium Soda 3% Sparkling Water 6% Other 1% RTD Coffee 1% Single-Serve Fruit Beverages 20%
Slide 12: DSD Distribution Network
DSD Distribution Network • Approximately 280 active distributors across North America – 40 States in the U.S. – National brands typically have 600-700 distributors • 8 provinces in Canada, including BC, AB, MB, ON, QC, NB, NF, SK Core Jones DSD markets Markets with limited DSD coverage No coverage
Slide 13: High Profile, Premier Customer Base
High Profile, Premier Customer Base Premium Foodservice Alternative Retail, Club, Mass Natural (Regionally) • Jones has national distribution and superior relationships in the fastest growing trade channels – High profile partnerships provide significant opportunities – Jones has DTR distribution wi
Slide 14: Growth Opportunities
Growth Opportunities Premium CSD Healthy Alternatives Web Strategy Seasonals Licensing Premium Soda Energy
Slide 15: Premium Bottle = Premium Can
Premium Bottle = Premium Can
Slide 16: Jones Premium CSD Offering
Jones Premium CSD Offering
Slide 17: CSD Market Opportunity
CSD Market $66 CSD Market Opportunity PET Water 35% New Age Beverages $16.9 billion (1) Entire New Age and CSD Market $82.8 Billion • Jones Soda’s current market is only a slice of the entire $82.8 Billion New - Age and CSD Market • Until recently, Jones competed in a narrow niche of the premium bev
Slide 18: Beverage Category Market Size
$65.9 BEVERAGE CATEGORY MARKET SIZE (1) CSD Market Opportunity • Launch new “ Jones Premium CSD ” format • CSD represents a $65.9 billion industry – Category has significant influence on consumer traffic and grocery sales $4.1 $9.9 $20.4 $21.6 $42.6 $58.8 $3.0 RTD Tea Sports Drinks Bottled Water Jui
Slide 19: The Target Test
The Target Test • In order to prove the brand’s ability to enter the CSD category, Jones entered into a two-year test with Target beginning July 2004 (Ending in July 2006) • Target has offered to extend the contract with increased volume commitments • All 1,400 Target Stores launch with: – 9 Flavors
Slide 20: Target CSD Program
Target CSD Program Target vs. Industry Growth (1) 1.6% 13.1% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% Industry Growth Target Growth (1) Based on Target data for 52 weeks ending July 2005. • Jones Soda was an incremental CSD product for Target that helped the Company grow its CSD business • Jones CSD is only
Slide 21: Growth Opportunities
Growth Opportunities Premium CSD Healthy Alternatives Web Strategy Seasonals Licensing Premium Soda Energy
Slide 22: Energy Strategy / Opportunity
Energy Strategy / Opportunity Energy Market Size (1) ENERGY… • Significant opportunity to grow energy product • Differentiated brand positioning • $1.8 billion market size (1) • 700% Category Growth between and (2) (1) Source: ACNielsen for 52 weeks ending April. (2) Source: Food Navigator Research.
Slide 23: Growth Opportunities
Growth Opportunities Premium CSD Healthy Alternatives Web Strategy Seasonals Licensing Premium Soda Energy
Slide 24: Jones Organics
Jones Organics New From Jones Soda Co. Organics for Everyone…
Slide 25: Organic Focus for 2006
Organic Focus for 2006 • Jones Soda created and soft launched Jones Organics in early 2005 • Jones Organics successfully targets the organics component of the $3.0 billion Ready to Drink market • The goal was to secure limited high profile customers, realizing that we were entering new channels and
Slide 26: Growth Opportunities
Growth Opportunities Premium CSD Healthy Alternatives Web Strategy Seasonals Licensing Premium Soda Energy
Slide 27: Innovative and Interactive Web Community
Innovative and Interactive Web Community • Web community reinforces brand – www.myjones.com – www.jonessodastore.com • Community creates stickiness and “cult-following” - and is on trend with customer base • Patented on-line customization and branding system enhances value and uniqueness of Jones
Slide 28: www.myjones.com – Mass Customization
www.myjones.com – Mass Customization • Jones Soda is the first consumer branded company that offers mass customization from one bottle to one million, and we own the patent • Get personalized Jones Soda delivered to your door
Slide 29: Mass Customization - Retailers
Mass Customization - Retailers • Creating an emotional connection does not stop at the consumer • Retailers are looking to differentiate themselves from their competitors and in doing so are willing to pay higher prices to be different • Every picture on every bottle at Panera comes from an employee
Slide 30: Web Strategy
www.myjonesmusic.com Web Strategy: • Utilize the legitimate connection that the brand has with Photos and Music and create a social network site with similar DNA to www.myspace.com – In 2004, Jones launched its first independent music site that allows bands, listeners and consumers to download music
Slide 31: Growth Opportunities
Growth Opportunities Premium CSD Healthy Alternatives Web Strategy Seasonals Licensing Premium Soda Energy
Slide 32: Seasonal Holiday Packages
Seasonal Holiday Packages • Our company strategy is to enhance the emotional connection our brand has with consumers – associations with holidays is critical to our strategy • From Thanksgiving to Halloween to Valentine’s Day, utilize competitive advantages to create unique selling opportunities in
Slide 33: Halloween 2005
Halloween 2005 • Jones Halloween cans have performed better than expected – Jones Halloween can sales in Target exceeded the sales of similar sized products offered by Pepsi and Cadbury Schweppes (two of the top three national brands) – During a three week-period, over 100,000 cases (600,000 selling
Slide 34: Valentine Pack 2006
Valentine Pack 2006 • For Valentines Day, Jones Soda tested “Love Packs” - on a limited production basis • Unlike other promotional seasonal flavors used solely as a marketing tool, like Turkey and Gravy, the “Love Packs” - were successfully formulated to offer a great taste
Slide 35: Growth Opportunities
Growth Opportunities Premium CSD Healthy Alternatives Web Strategy Seasonals Licensing Premium Soda Energy
Slide 36: Licensing Programs
Licensing Programs Frozen Soda Pops Lip Balm Big Sky Hard Candy
Slide 37: Original
ORIGINAL —e Kitekin MOKICKER, GA S2ID 2 |cHEVY DRED THE MOTOR CITY. Prom Byres
Slide 38: Growth Opportunities – Summary
Growth Opportunities – Summary $0.5 billion $3.9 billion $74.6 billion • Premium Soda • Premium Soda • Jones Naturals • Premium Soda • Jones Naturals • Jones Energy • Jones Organics • Premium Canned Soda • Continued diversification of product offering building upon premium soda • Current product off
Slide 39: Management and Board of Directors
Management and Board of Directors Management and Board of Directors Bauer Nike Hockey Name Position Experience Age Peter M. van Stolk Founder, Chairman, President and CEO Founder Hassan N. Natha CFO Accenture / Lars P. Nilsen Executive Vice President of Sales Coca Cola - Europe Scott Bedbury Directo
Slide 40: Annual Revenue Growth
Annual Revenue Growth Annual Revenue Growth ($ in millions) $20.1 $27.5 $33.5 $5 $10 $15 $20 $25 $30 $35 $40 $45 29.1% CAGR
Slide 41: Quarterly Revenue – March First Quarter
Quarterly Revenue – March 31 First Quarter March 31, $6.9 $8.8 $5 $6 $7 $8 $9 $10 27.4% CAGR ($ in millions)
Slide 42: Quarterly EPS – March First Quarter
Quarterly EPS – March 31 First Quarter March 31, (1) $0.00 $0.02 $0.00 $0.01 $0.02 $0.03 $0.04 $0.05 (1) Excludes stock related compensation.
Slide 43: Consolidated Balance Sheet
Consolidated Balance Sheet Balance Sheet December 31, March 31, ($ in millions) Assets Cash and cash equivalents $1.2 $2.8 Accounts receivable 3.7 4.6 Inventory 4.7 3.9 Prepaid expenses 0.1 0.2 Total current assets 9.7 11.5 Capital assets 0.7 0.6 Intangible assets 0.1 0.1 Total Assets 10.5 12.2 Liab
Slide 44: Highlights
Highlights • Five product lines addressing $16.9 billion New Age beverage market and $65.9 billion CSD market • Current Direct to Store Distribution (“DSD”) covers less than 40% of the market significant expansion opportunity for all product lines • Premium soda distribution agreements with leading