Jones Soda (JSDA) investor relations material

Strategic direction and business transformation

• Leadership team joined in early 2024, initiating a turnaround focused on cost controls, purchasing, and manufacturing improvements.

• Transitioning from a craft soda business to a multi-category beverage portfolio, targeting growth in reduced sugar, hemp/THC-infused, and ready-to-drink segments.

• Emphasis on leveraging strong brand equity and experienced CPG leadership to drive expansion.

• Innovation is now concentrated within three main categories: core, modern, and adult beverages, with a focus on depth over breadth.

• Board and management team bring significant CPG and supply chain expertise, supporting the company’s growth trajectory.

Product portfolio and market positioning

• Core soda remains relevant, with new low and zero sugar options appealing to health-conscious consumers.

• Modern soda, including Pop Jones and Fiesta Jones, targets the $2B category projected by 2029, focusing on functional and Latin-inspired flavors.

• Adult beverages, such as Spike Jones and THC-infused products, are positioned to capture shifting consumer preferences away from beer and wine.

• Expansion into prebiotics and “better for you” products aligns with market trends and consumer demand.

• Club and convenience channels, including a recent launch in Costco Southeast, are key growth drivers.

Financial performance and operational focus

• 2022 revenue was around $19M, declined to under $17M, but rebounded above $19M last year, though with significant EBITDA losses due to heavy innovation spending.

• Gross margin improved from 21% to the 30% range in the first half, with a goal to reach mid-30s.

• Sequential quarterly revenue growth is targeted, with a focus on core, modern, and adult beverage categories.

• EBITDA loss improved by 47% in the first six months through cost-cutting and process improvements.

• Foundation for future growth established by narrowing focus, controlling costs, and replicating best practices.