Jones Soda (JSDA) 8-K Regulation FD Disclosure

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1

JONES SODA CO.

May 2006

Exhibit 99.1

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2

Forward Looking Statement

Comments

today

may

include

forward-looking

statements.

Please

keep

in

mind

that

any

statements

made

by

the

Company

during

this

presentation

that

look

forward

in

time

or

include

anything

other

than

historical

information,

involve

risks

and

uncertainties

that

may

affect

the

Company’s

actual

results

of

operations.

Those

risks

and

uncertainties

are

discussed

in

more

detail

in

the

Company’s

periodic

reports

filed with the Securities and Exchange Commission.

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3

Presenters

Peter van Stolk

Chairman, CEO, and President

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4

The future for any Brand is to…

Create an Emotional connection

with its consumers.

Jones Brand Creates an Emotional Connection

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5

Company Overview

•

Premium beverage company --Jones Soda brand launched in 1996

•

Five product lines addressing $16.9 billion New Age beverage market and $65.9

billion carbonated soft drink (“CSD”) market

•

Premium brand with strong customer loyalty

•

Unique marketing strategy generates high awareness with a limited budget

•

Nationwide reach through distributors, direct to retail (“DTR”), and licensing

agreements

•

Strong online web community

•

Patented consumer packaged goods customization technology

•

#1 growing premium brand in retail grocery

•

#1 premium soda in convenience stores

•

The average selling price for ONE BOTTLE of Jones Soda at $1.75 is greater than

the average selling price of 12 cans of private label

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6

Premium Portfolio of Products

Premium Sodas

Jones Naturals

Launched in 2001

Jones Energy

Jones Organics

Jones Cans

Launched in 2002

Sugar Free launched in 2004

Launched in 2004

Exclusive with Target

Launched in 2005

Launched in 1996

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7

Differentiated Sales & Marketing Strategy

•

“Customers pay for brands, whereas they buy

products”

•

Target 12-24 year olds with grass roots brand imaging

•

Pillars of the Jones Brand

–

Alternative Accounts

–

Athletes –

pro and amateur

–

RV Program

–

Event Sponsorship

–

Website

•

Total interaction with our consumers and our brand

•

Truly understanding our customers

•

Customized Branding Technology

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8

Growth Opportunities

Premium CSD

Healthy

Alternatives

Web Strategy

Seasonals

Licensing

Premium Soda

Energy

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9

Premium Sodas

•

Premium Sodas have been sold in the North American 

marketplace for over 150 years

•

Stable category for growth

Jones Premium Sodas

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10

Jones Soda Product Offering:

Current Flavors:

-

Cream Soda

-

Tangerine

-

Root Beer

-

Blue Bubblegum

-

Orange & Cream

-

Lemon Drop

-

Cherry

-

Crushed Melon

-

Strawberry Lime

-

Berry Lemonade

-

MF Grape

-

Fruit Punch

-

Vanilla Cola

-

Fufu Berry

-

Watermelon Soda

-

Blueberry

-

Green Apple

-

Twisted Lime

Sugar-Free Jones:

-

Sugar-Free Black Cherry

-

Sugar-Free Cream Soda

-

Sugar-Free Root Beer

-

Sugar-Free Ginger Ale

-

Sugar-Free Pink Grapefruit

-

Sugar-Free Cream Soda

-

Sugar-Free Green Apple

Premium Soda Portfolio

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11

Premium Soda Market Size

•

Until recently Jones competed in a narrow niche of the $16.9 billion

New Age Beverage market

$16.9 Billion New Age Beverage Market

RTD Tea

16%

Sports Drinks

18%

Premium Soda

3%

Sparkling Water

6%

Other

1%

RTD Coffee

1%

Single-Serve

Fruit Beverages

20%

PET Water

35%

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12

•

Approximately 280 active distributors across North America

–

40 States in the U.S.

–

National brands typically have 600-700 distributors

•

8 provinces in Canada, including BC, AB, MB, ON, QC, NB, NF, SK

Core Jones DSD markets

Markets with limited DSD coverage

No coverage

DSD Distribution Network

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13

High Profile, Premier Customer Base

•

Jones has national distribution and superior relationships in the fastest growing

trade channels

–

High profile partnerships provide significant opportunities

–

Jones has DTR distribution with Starbucks, Panera and Barnes & Noble (currently over 8,000

retail accounts)

Premium Foodservice

Alternative

Retail, Club, Mass

Natural (Regionally)

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14

Growth Opportunities

Premium CSD

Healthy

Alternatives

Web Strategy

Seasonals

Licensing

Premium Soda

Energy

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15

Premium Bottle = Premium Can

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16

Jones Premium CSD Offering

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CSD Market

$66 

New Age Beverages

$16.9 billion

(1)

Entire New Age and CSD Market

$82.8 Billion

•

Jones Soda’s current market is only a slice of the entire $82.8 Billion New-Age and

CSD Market

•

Until recently, Jones competed in a narrow niche of the premium beverage market

•

Entry into the CSD market gives Jones access to a significantly larger opportunity

CSD Market Opportunity

(1) Beverage World magazine annual beverage market survey for calendar year 2005, based on full year 2004 data.

RTD Tea

16%

Sports Drinks

18%

Premium Soda

3%

Sparkling Water

6%

Other

1%

RTD Coffee

1%

Single-Serve

Fruit Beverages

20%

PET Water

35%

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18

•

Launch new “Jones Premium CSD”

format

•

CSD represents a $65.9 billion industry

–

Category has significant influence on consumer traffic and grocery sales

$4.1

$9.9

$20.4

$21.6

$42.6

$58.8

$3.0

$65.9

RTD Tea

Sports Drinks

Bottled Water

Juices

Wine

Spirits

Beer

Soft Drinks

BEVERAGE CATEGORY MARKET SIZE

(1)

($ in billions)

CSD Market Opportunity

(1) Based on 2005 data.

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•

In order to prove the brand’s ability to enter the CSD category, Jones entered into a

two-year test with Target beginning July 2004 (Ending in July 2006)

•

Target has offered to extend the contract with increased volume commitments

•

All 1,400 Target Stores launch with:

–

9 Flavors of Jones Soda cans in 12-packs

–

5 Flavors of Jones Soda bottles

–

3 Flavors of Jones Energy in 4-packs

The Target Test

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20

Target CSD Program

Target vs. Industry Growth

(1)

1.6%

13.1%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

Industry Growth

Target Growth

(1) Based on Target data for 52 weeks ending July 2005.

•

Jones Soda was an incremental CSD product for Target that helped

the Company grow its CSD

business

•

Jones CSD is only sold in Target’s 1,400 Stores

–

Target is 2% of the All-Commodity Volume (“ACV”)

•

Jones’

proven CSD business can expand to larger volume retailers

•

Opportunity equals 100% of the total ACV

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21

Growth Opportunities

Premium CSD

Healthy

Alternatives

Web Strategy

Seasonals

Licensing

Premium Soda

Energy

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22

ENERGY…

•

Significant opportunity to grow energy product

•

Differentiated brand positioning

•

$1.8

billion

market

size

(1)

•

700%

Category

Growth

between

2000

and

2005

(2)

Energy Strategy / Opportunity

Energy

Market

Size

(1)

(1) Source: ACNielsen for 52 weeks ending April.

(2) Source: Food Navigator Research.

$1,156

$1,794

$600

$1,000

$1,400

$1,800

$2,200

2004

2005

55.2% Growth

($ in millions)

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23

Growth Opportunities

Premium CSD

Healthy

Alternatives

Web Strategy

Seasonals

Licensing

Premium Soda

Energy

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24

New From Jones Soda Co.

Organics for Everyone…

Jones Organics

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25

Organic Focus for 2006

•

Jones Soda created and soft launched Jones Organics in early 2005

•

Jones Organics successfully targets the organics component of the $3.0 billion

Ready to Drink market

•

The

goal

was

to

secure

limited

high

profile

customers,

realizing

that

we

were entering new channels and new demographics

•

Jones Organics has been tested in New York City

–

The results provide us with the confidence to focus more on Jones Organics in 2006

•

Currently distributed in Whole Foods and Safeway

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26

Growth Opportunities

Premium CSD

Healthy

Alternatives

Web Strategy

Seasonals

Licensing

Premium Soda

Energy

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27

•

Web community reinforces brand

–

www.myjones.com

–

www.jonessodastore.com

•

Community creates stickiness and “cult-following”-and is on trend with customer base

•

Patented on-line customization and branding system enhances value and uniqueness of

Jones

Innovative and Interactive Web Community

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www.myjones.com

–

Mass Customization

•

Jones

Soda

is

the

first

consumer

branded

company

that

offers

mass

customization

from

one

bottle

to

one

million,

and

we

own

the

patent

•

Get personalized Jones Soda delivered to your door

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29

•

Creating an emotional connection does not stop at the consumer

•

Retailers are looking to differentiate themselves from their competitors

and in doing so are willing to pay higher prices to be different

•

Every picture on every bottle at Panera comes from an employee

•

Starbucks is implementing a barista submitted photo program

Mass Customization -

Retailers

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30

Web Strategy:

•

Utilize the legitimate connection that the brand has with Photos

and Music and create a social

network site with similar DNA to www.myspace.com

–

In 2004, Jones launched its first independent music site that allows bands, listeners and

consumers to download music

Customization:

•

Opportunity to License our technology and take full advantage of

our Patent on “customizing

consumer brands over the internet”

www.myjonesmusic.com

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31

Growth Opportunities

Premium CSD

Healthy

Alternatives

Web Strategy

Seasonals

Licensing

Premium Soda

Energy

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32

•

Our company strategy is to enhance the emotional connection our brand

has with consumers

–

associations with holidays is critical to our strategy

•

From Thanksgiving to Halloween to Valentine’s Day, utilize competitive

advantages to create unique selling opportunities in seasonal flex space

Seasonal Holiday Packages

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33

Halloween 2005

•

Jones Halloween cans have performed better than expected

–

Jones Halloween can sales in Target exceeded the sales of similar sized

products offered by Pepsi and Cadbury Schweppes (two of the top three

national brands)

–

During a three week-period, over 100,000 cases (600,000 selling units) were

sold in Target stores

Strawberry Slime

Candy Corn

Caramel Apple

Scary Berry

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34

Valentine Pack 2006

•

For Valentines Day, Jones Soda tested “Love Packs”-on a limited

production basis

•

Unlike other promotional seasonal flavors used solely as a marketing

tool, like Turkey and Gravy, the “Love Packs”-were successfully

formulated to offer a great taste

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35

Growth Opportunities

Premium CSD

Healthy

Alternatives

Web Strategy

Seasonals

Licensing

Premium Soda

Energy

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36

Licensing Programs

Frozen Soda Pops

Lip Balm

Big Sky Hard Candy

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Licensing Programs -

Chevy

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38

Growth Opportunities –

Summary

$0.5 billion

$3.9 billion

$74.6 billion

•

Premium Soda

•

Premium Soda

•

Jones Naturals

•

Premium Soda

•

Jones Naturals

•

Jones Energy

•

Jones Organics

•

Premium Canned Soda

•

Continued diversification of product offering building upon premium soda

•

Current product offering positions Jones to capitalize on a $74.6 billion   

addressable market

Time

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39

Management and Board of Directors

Management and Board of Directors

Bauer Nike Hockey

Name

Position

Experience

Age

Peter M. van Stolk

Founder, Chairman, President and CEO

Founder

42

Hassan

N. Natha

CFO

Accenture

/

46

Lars P. Nilsen

Executive Vice President of Sales

Coca Cola -

Europe

44

Scott Bedbury

Director

Nike / Starbucks

48

Michael M. Fleming

Director

Lane Powell Spears Lubersky

LLP

57

Jack Gallagher

Director

Optiva

Corporation –

Sonicare

57

Matthew Kellogg

Director

Kingfisher Capital, LLC

40

Stephen C. Jones

Director

Coca Cola

50

Al Rossow

Director

Samuel Adams / Kendal Jackson

73

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40

($ in millions)

Annual Revenue Growth

Annual Revenue Growth

$20.1

$27.5

$33.5

$5

$10

$15

$20

$25

$30

$35

$40

$45

2003

2004

2005

29.1% CAGR

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41

$6.9

$8.8

$5

$6

$7

$8

$9

$10

2005

2006

27.4% CAGR

Quarterly Revenue –

March 31

First Quarter March 31,

($ in millions)

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42

Quarterly EPS –

March 31

First

Quarter

March

31,

(1)

$0.00

$0.02

$0.00

$0.01

$0.02

$0.03

$0.04

$0.05

2005

2006

(1) Excludes stock related compensation.

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Consolidated Balance Sheet

Balance Sheet

December 31,

March 31,

($ in millions)

2005

2006

Assets

Cash and cash equivalents

$1.2

$2.8

Accounts receivable

3.7

4.6

Inventory

4.7

3.9

Prepaid expenses

0.1

0.2

Total current assets

9.7

11.5

Capital assets

0.7

0.6

Intangible assets

0.1

0.1

Total Assets

10.5

12.2

Liabilities and Shareholders' Equity

Accounts payable and accrued liabilities

3.9

4.7

Current portion of capital lease obligations

0.1

0.1

Current portion of deferred revenue

0.1

0.0

Total current liabilities

4.1

4.8

Capital lease obligations

0.1

0.1

Total Liabilities

4.1

4.9

Common stock

12.5

13.1

Addition paid in capital

0.8

1.2

Accumulated other comprehensive income

0.1

0.1

Deficit

(7.0)

(7.0)

Total shareholders' equity

6.3

7.4

Total Liabilities and Shareholders' Equity

10.5

12.2

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44

Highlights

•

Five product lines addressing $16.9 billion New Age beverage market

and $65.9 billion CSD market

•

Current Direct to Store Distribution (“DSD”) covers less than 40% of the

market

significant expansion opportunity for all product lines

•

Premium soda distribution agreements with leading retailers —-sold at

all US Starbucks, Panera and Barnes & Noble locations

•

Further penetration into the $65.9 billion CSD market provides an

exceptional top and bottom line growth opportunity

–

Jones Soda's CSD line provides retailers with a high margin alternative and

compelling reason to display Jones Soda

•

Proven ability to create proprietary packaging products for major

retailers    (e.g. energy, organics and juice boxes)

•

Premium brand with focused marketing strategy has led to strong

customer loyalty

•

Strong balance sheet; no debt