Jones Soda Co. fizzled in 2007, and it was apparent the company needed to make some changes and go in a different direction. That change was made at the top, when the company announced Tuesday that CEO and chairman Peter van Stolk will resign at the end of the year.
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The Seattle-based company did not provide a reason for the resignation, but the writing was on the wall. Under van Stolk, Jones' last three consecutive quarters resulted in disappointing earnings. The latest quarter generated a $1.5 million loss, which the company blamed on high promotional costs as well as expenses related to getting its products on retailer shelves. And through all these disappointing earnings, the stock nosedived from a 52-week high of $31.54 in mid-April to its present $6 range.
Add to this a stockholder lawsuit against the company for alleged insiders intentionally participating in a fraudulent scheme to inflate the company's stock price, and it's no wonder that a change was made. Jones will replace van Stolk with Scott Bedbury as the interim chairman and Steve Jones as interim chief executive. Both are current board members.
Dealscape suggested in February that Jones might be a good target for either Coca-Cola Co. or PepsiCo Inc. With the stock trading so low and a leadership void, a deal might be even more likely now than earlier in the year. Additionally, its breadth of products is certainly unique, and both soft-drink giants have been seeking something new to offer customers. Jones differentiates itself by using pure cane sugar instead of high fructose corn syrup, a cheaper sweetener that many soft drink and juice companies use that is often blamed for the growing obesity epidemic and rising cases of type 2 diabetes. — Gerald Magpily
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