Jones Soda Co

Q2 2023 Earnings Conference Call

8/9/2023

spk00: to sustain long-term profitability shortly after that as our growth initiative starts to land.
spk01: All right. Question four. David, in your short time as new CEO, are there any significant organizational changes that you anticipate will need to be made to accomplish the growth plans you've laid out? Also, what have been the biggest surprises, good or bad, in your first few months?
spk00: Firstly, no real surprises, but in my short time at Jones, the biggest realization for me is that I've joined a team that is extremely passionate about this brand with deep experience in the category. We are in a pretty exciting time here at Jones with key growth areas gaining momentum. My focus will be on taste and growth and delivering innovation on both our core Jones Soda business as well as Mary Jones. Our rally cry moving forward is keep up with the Joneses. as we set a new pace in craft sodas and beyond.
spk01: Great. And last question here. As Mary Jones continues to take market share and become a top brand in the cannabis industry, how long until the business becomes a more meaningful revenue contributor? Do you eventually expect the cannabis business to overtake the core bottled soda business from a sales perspective?
spk00: The Mary Jones brand is certainly one that we've been actively expanding to encompass into a wide range of products and simultaneously increase the regional footprint. Every time we add a state or expand the portfolio, the business is 100% incremental from a revenue and profitability perspective. So as you look out over the balance of the year, each month gets better, each quarter gets better, and we're excited about the run rates we see through the end of the year. As we said, it is coming slower than we wanted, but it is coming. And we believe it can be a significant growth initiative, and it will have a major impact on the organization in the future. The long-term goals of Mary Jones are significant, but so are our goals for the core bottle soda business. So we believe that these two categories of business are being set up to grow together in a really exciting way.
spk01: Thanks, David. This concludes our Q&A session. We'd like to thank everyone for taking the time to listen today. We look forward to speaking with you to report our third quarter results later this year. Thanks again and have a great day. Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time.
spk00: Thank you for your participation.
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