| Lou Victor : Will Jones Soda Expand Their Horizons Through Strategic Cross Marketing? |
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| Wednesday, 29 August 2007 | |
Lou Victor : Will Jones Soda Expand Their Horizons Through Strategic Cross Marketing?NEW YORK, NY (NAMC) (August 28, 2007) - After a sharp rise earlier in 2007 due to a short squeeze, hitting a 52-week high of $32.60 back in April, the soda company that we see as more of a lifestyle brand, Jones Soda Co (NASDAQ: JSDA), may still prove to be a good investment at these levels. Now Jones Soda develops, produces, markets and distributes alternative beverages in six beverage brands: Jones Pure Cane Soda, a soda; Jones Organics, a ready-to-drink organic tea; Jones Energy, a citrus energy drink; WhoopAss, a citrus energy drink; Jones Naturals, a non-carbonated juice and tea, and Jones 24C, a water beverage. Their products are sold throughout the United States and Canada through independent distributors and national retail accounts, they do not have a massive presence in Europe, Asia or other parts of the world as of yet. Back in August 2006, Jones Soda entered into a manufacturing and distribution agreement with National Beverage Co. to manufacture and distribute Jones Soda's 12-ounce cans to the grocery and mass merchant channel in the United States, this kicked off iIn January 2007. Now with Wall Street anticipating a potential rate cut by the Fed, and the retail industry poised to take center stage in this economy, a company such as Jones Soda may be in an interesting position, believe it or not. I'll throw one phrase at you, Cross- Marketing, one prime example of this is Crocs, Inc (NASDAQ: CROX) which refused to be a one show pony and announced that they were diving into the clothing area and not just keeping their focus in the footwear arena. This sent the stock to a 52-week high of $61.99, and why, simple answer, because they added value to the company by expanding their horizons. Granted Jones Soda is no Crocs, but they actual can align themselves with the likes of Pacific Sunwear of California or Pacsun (NASDAQ: PSUN) or Hot Topic (NASDAQ: HOTT) for a cross-marketing campaign or should I dare to say merger, that may be far fetched but some time ago News Corp (NYS:E NWS) taking over MySpace was far fetched as well. Jones Soda aligning with American Eagle Outfitters (NYSE: AEO) or The Gap (NYSE: GPS) wouldn't be beneficial to either of these companies, so you can shoot that thought down. Our outlook for Jones Soda is this, if they align with a like minded retail chain in the third quarter of 2007, such as Pacsun or Hot Topic, both of whom need the additional exposure to compete with the teen sensations American Eagle Outfitters and Abercrombie & Fitch (NYSE: ANF), with the Gap on the hunt of a piece of that highly desireable and profitable demographic, Jones Soda may see the high teens once again. It all comes down to reaching your target market and connecting with them, Jones Soda just may have that opportunity and not rise solely on a short squeeze. Jones Soda Co. closed at $11.00 on Monday, August 27, 2007. Remember to listen to the show on Jones Soda which is available Online now! NAMC Newswire Note: NAMC Worldwide provides Investment Banking consulting services to both publicly traded and privately held companies, everything from capital raising to mergers and acquisitions. Other areas of focus are Private Equity Capital Raising and Private Commodity Transactions. This article can be republished either online or in print as long as credit is given to the author and the NAMC Newswire. NAMC Newswire articles can now be listened to on StreetIQ.com http://www.streetiq.com/dir/NAMC.shtml |
