Jones Soda's New Pure Cane Sugar Soft Drink: Competition for Coke

Jones Soda's (JSDA) recent announcement of the introduction of a sugar sweetened soda, as opposed to the more typical corn syrup sweetened variety, went largely unnoticed by the Street. Can you blame them? What's the big deal. Corn syrup or sugar? Who cares, what's the difference anyway?

Soda aficionados know that there is a huge difference. Pure cane sugar just plain tastes better. Some of us go to great lengths prior to Passover (your very Presbyterian Cheap Stocks editor included) to obtain supplies of Coca Cola's (KO) kosher-for-Passover version of Coke, made with sugar, produced in limited quantities and available only in certain parts of the country. It tastes like the Coca Cola from many years ago, much better than the corn syrup version, with a much healthier head of foam.

Jones is touting their soon to be released Jones Pure Cane Sugar Soda as a healthier alternative to corn syrup sweetened sodas. While cane sugar is natural, high fructose corn syrup is not. Whether or not there are health benefits is up for debate.

Jones sees this new release as a differentiator in the already highly competitive soft drink market. Ultimately, if taste wins out, perhaps Jones and ultimately shareholders will benefit.

JSDA-KO 1-yr comparison chart:

Disclosure: The author has a position in this stock.

Comments

[User 139124:]

Jones Soda, No matter if its in a bottle or can, Is always smooth and refreshing...On a hot summer day here in PHOENIX, AZ it is a nice drink to quench your thirst and unlike all other sodas it doesn't leave a Phlegm in your throat....Since I first had Jones soda I have not felt the same about Dr. Pepper or Coke again....

2008 Jan 12 01:36 AM

[Michelle:]

Jones Soda is not only an entertaining brand (made with Pure Cane Sugar and Love) but its also classically delicious. The accounts made by Pepsi corp. are ridiculous; stating that Jones Soda is using Pure Cane Sugar simply to make the brand sound healthier than others. Quite frankly, I'd rather pop open a Jones Soda on a warm evening than a can of Pepsi or Coke. I think they made the smart decision on 2007 when they switched their products to strictly Pure Cane Sugar; the cocky corporations would be smart to do the same.

2008 Oct 05 05:17 PM