Seattle-based craft soda producer Jones Soda Co. is crossing over into BevAlc with the launch of Spiked Jones Hard Craft Soda, announced yesterday.
The company, which also expanded into foodservice and deeper into cannabis this year, is now leveraging its unconventional soda brand to move into the ready-to-drink category with the help of another Washington-based beverage company. Rainmaker, producer of Locust Cider, will partner with Jones on national distribution, a collaboration focused on “operational efficiencies, incremental sales and profits for key retailers,” read a statement.
Spiked Jones will launch with 19.2 oz single cans (6.9% ABV) and a mixed 12-pack of 12 oz cans (8.4% ABV). Known for its indulgent flavors, the initial SKUs include M.F. Grape, Orange & Cream, Strawberry Lime, Berry Lemonade, Cola & Lime, and Green Apple. Cans will feature user submitted photos, as popular with other Jones Soda products.
The product is not Jones Soda’s first foray into BevAlc, in 2018 it launched Spiked Jones, a hard cider-soda produced in partnership with Jeff Bland, the cider maker for Spire Mountain Ciders at Fish Brewing in Olympia, Washington. But that was before other soda and non-alc beverage producers began a rapid push into ready-to-drink products, also aiming to open up new revenue streams using familiar brand names.
Hard soda sales were up 50.6% in the two weeks ending February 2, with brands like Hard MNT Dew dominating in share, according to NielsenIQ data for US x AOC (extended All Outlet Combined) channels.
The brand has secured a major retail grocery partner for initial distribution in Q2 2024, to be announced at a future date, according to a statement. Jones Soda was founded in 1986 and has since become a retail mainstay available in chains such as Walmart, Kroger, Albertsons, Circle K and Kum & Go, among others. Last month, the company created a new internal foodservice division to focus on growing the brand in on-premise accounts including bars, restaurants and quick-service locations across the country.
The partnership with Rainmaker compliments and broadens Jones’ flavors and formulation, retail grocery and convenience relationships, as well as its new footprint in food service, according to a release. The launch is being supported by in-store sampling and activation at music festivals.
The expansion arrives on the heels of its move into the Delta-9 hemp category via its cannabis Mary Jones beverage line, allowing it to grow its THC-infused products in mainstream retail accounts.
Last year, David Knight became president and CEO of the company, taking over the role from outgoing executive Mark Murray, who had been credited with helping to turn around the brand following years of declining sales.
In its most recent Q3 2023 earnings report in November, Jones reported revenue for the quarter fell to $4.5 million from $4.8 million the prior year. However, gross profit as a percentage of revenue increased 600 basis points to 32.9% in the quarter. The company plans to release its Q4 and full year 2023 earnings tomorrow.