The Bubbly Rise And Shattering Fall Of Jones Soda

Summary

Jones Soda, a Canadian craft soda brand founded in 1995, gained fame for its quirky flavors and user-generated bottle photos. Known for wacky offerings like turkey and gravy soda, Jones enjoyed a meteoric rise, with partnerships with Starbucks, Target, and even the Seattle Seahawks. However, after struggling during the 2008 recession, a shift to corporate strategies and a series of financial losses, Jones Soda almost went flat. But after restructuring and refocusing on its customers, the brand returned to profitability. Today, Jones continues to release limited edition flavors and unique products, including cannabis-infused soda, keeping its quirky legacy alive.

Takeaways

• 😀 Jones Soda was founded in 1995 in Vancouver, Canada by Peter Van Stoke and Victor John Penner, aiming to offer an alternative to large soda brands like Coca-Cola and Pepsi.
• 😀 The brand became popular for its unique marketing strategy, which featured user-submitted photos on its bottles, even offering a program called 'My Jones' to let customers personalize their bottles.
• 😀 Jones Soda first gained major attention with its limited-edition, quirky flavors like turkey and gravy soda, which sold out within hours in 2003.
• 😀 Over the years, Jones Soda released many strange flavors for special occasions, such as zombie juice, blood sucker, werewolf piss, and even salmon pate soda.
• 😀 The brand initially used alternative distribution strategies by selling in record stores, tattoo parlors, and clothing shops, later partnering with Starbucks and Target to expand its reach.
• 😀 By 2007, Jones Soda had gained significant media attention and was even named the official beverage of the Seattle Seahawks, marking a historic deal in NFL beverage sponsorship.
• 😀 Despite early successes, the company faced financial struggles in the late 2000s, partly due to the Great Recession and unsuccessful expansions, including the shift to cans and large corporate partnerships.
• 😀 Jones Soda's decline in the late 2000s led to several years of financial losses, culminating in a $12 million loss in 2007 and a $15 million loss in 2008.
• 😀 A renewed focus on customer experience and reduced spending on advertising helped Jones Soda break even in 2015, and by 2016, the company returned to profitability with a modest $49,000 profit.
• 😀 In recent years, Jones Soda has diversified its product line with sugar-free sodas, energy drinks, juices, and even a controversial cannabis-infused soda, while also continuing to release limited edition flavors.
• 😀 Although not back to its peak, Jones Soda's focus on craft sodas and its unique, customer-centric approach has allowed it to remain profitable and competitive in the growing craft soda market.

Q & A

What was the original vision behind Jones Soda?

The original vision behind Jones Soda was to create an alternative to sodas like Coca-Cola and Pepsi, offering a more unique and craft approach to soft drinks.

How did Jones Soda involve its customers in the product design?

Jones Soda involved its customers by allowing them to submit their own photos to be featured on the soda bottles. This user-generated content became a central part of their marketing and brand identity.

What is the significance of the 'My Jones' program?

'My Jones' was a program launched in 1999 that allowed customers to customize their soda bottles with their own photos and messages, further engaging the customer base and increasing brand loyalty.

How did Jones Soda make its debut in unusual flavors?

Jones Soda gained attention by releasing limited-edition, unusual flavors like turkey and gravy soda around Thanksgiving in 2003, which sold out in less than two hours.

Why did Jones Soda start offering canned versions of its drinks?

Jones Soda started offering canned versions of its drinks in 2004 to compete with larger soda companies like Coke and Pepsi, but it ultimately led to financial struggles due to increased costs and competition.

What happened to Jones Soda during the Great Recession?

During the Great Recession of 2007-2008, Jones Soda faced significant financial losses, losing nearly $12 million in 2007 and another $15 million in 2008, which led to workforce reductions.

What role did corporate partnerships play in Jones Soda's success?

Corporate partnerships, such as with Starbucks and Target, played a crucial role in expanding Jones Soda's distribution and visibility, helping the brand reach a larger audience.

What challenges did Jones Soda face after partnering with major corporations?

After partnering with major corporations, Jones Soda struggled with becoming 'too corporate' and losing its original focus on creating unique, small-batch sodas, which impacted its success and profitability.

How did Jones Soda return to profitability in 2015?

Jones Soda returned to profitability in 2015 by reducing costs, cutting advertising spending, and refocusing on customer relationships, leading to increased sales and a modest profit.

What new products has Jones Soda introduced in recent years?

In recent years, Jones Soda has introduced new products such as sugar-free sodas, energy drinks, juices, and even cannabis-infused beverages, diversifying its product line to appeal to a wider market.