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March 2008 > Feature
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Brands in Transition

By Matt Casey

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MEET MARTHA STEWART

But Jones had little choice but to adapt and change. Starbucks – the company that put Jones’ quirky glass bottles into the hands of millions of consumers across the U.S. – scuttled their distribution agreement last June to make room for expanded menu offerings.

Jones hasn’t lost its toe-hold in national chains altogether: you can still find them in Panera Bread Bakery Cafes. And the company hasn’t been content to stand still while the ground shifts beneath it. Jones is taking new stabs at building an independent network, and is also being trumpeted by retailers like Wal-Mart and K-Mart as one of those slightly upscale brands that retailers now try to incorporate across all categories. Martha Stewart, meet Jones Soda.

Meanwhile, Godwin said, the company has big plans for the near future under the direction of interim CEO Steve Jones, a former Coca-Cola executive and Jones board member.

One bright light is 24c –the company’s response to the vitamin-infused water phenomenon – already making its way onto Whole Foods’ shelves in powder form. The company has also released a ready to drink version of 24c, one that Godwin said entered the market at an opportune time, as Coca-Cola’s purchase of glaceau has left a vitamin water-shaped hole in the independent distributor system.

But Jones also has higher ambitions for 24c. With more vitamins and minerals than anybody else, he said, the company wants 24c to create a premium fortified water segment, much like Perrier created the premium bottled water segment.

Whether or not 24c cuts out new space for Jones in the cooler case, Godwin said, the company plans to make its entry into the functional drink market later this year. The product is still in the early stages of development, so it’s too early for Godwin to discuss flavor profiles – or much else, for that matter – but he said beverage will likely be tea-based and will certainly include an amino acid called Gamma Aminobutyric Acid – or Gaba, for short. The substance is popular in Japan, Godwin said, where golfers and video game players consume it for mental clarity and focus. If the additive is a hit, Jones will have a jump on copy-cats, Godwin said, because the company has an exclusive two-year contract to use Gaba in beverages.

Despite all the big changes, Godwin said Jones Soda wants to remain the same company it has always been.

“We’re still trying to stay true to what our brand is all about, which is self-expression,” Godwin said.

But Steele remains unconvinced.

“To me, I guess they’re chasing everybody else,” he said. “I’m not sure if that’s who they are.”

Maybe it isn’t, but scrappy little Jones Soda has made it to Wal-Mart shelves, and the end zone at Qwest Field. That represents an enormous new arena with a lot of new seats to fill. Jones needs to fill those seats, but can they do it with the new lineup? Only time will tell.

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