Jones Soda Co. is searching for its second CEO in 16 months as David Knight has “departed” the recently loss-making US business.
Former PepsiCo executive Knight only joined the Lemoncocco soda and Mary Jones brand of cannabis-infused beverages business in June last year to replace Mark Murray as president and CEO, who also stepped down at that point.
Murray was appointed CEO late in 2020, adding to the president role he had held at the Seattle-based company for three months.
Jones Soda, which entered the alcohol category earlier this year with Spiked Jones Hard Craft Soda, did not provide a reason for Knight’s departure, effective from last Friday, 25 October.
In a brief statement, the company said its current chairman, Paul Norman, will step in as interim president and CEO while a search for Knight’s replacement commences.
Ex-Kellogg man Norman has been the chairman of Jones Soda since 2022 but had sat on the board as a director since 2019. With “over 30 years of experience creating brand and shareholder value” he served as president of the cereal maker’s North America division from 2015 to 2018.
“As we continue to launch new and exciting brands, I intend to ensure that Jones Soda will remain committed to focusing on value-creation strategies and operating efficiently,” Norman said.
“I look forward to working with the board, the management team, and the entire organisation to unlock value for the company's shareholders and to help identify and bring on a new permanent chief executive officer who can execute on the many exciting initiatives we currently have underway."
The shares closed down 3% yesterday (28 October) at 30 US cents, the day Knight’s departure was announced. While they have lost 8% in value over the past month, the stock is up more than 100% this year.
Those gains have emerged despite Jones Soda failing to turn around its profitability this year – the business was loss-making in the first six months through June and also ended 2023 in the red.
The net loss for the second quarter widened to $1.57m from $1.02m a year earlier. The year-to-date loss was $2.72m, compared to a loss of $2.39m.
Adjusted EBITDA losses also widened, to $1.1m from $729,000 for the quarter, and to $2.1m versus $1.8m for 2024 so far.
Revenue for the second quarter did increase, however, rising 49% to $7.2m. But it was down 12% at $16.7m year to date.
Knight said when those results were issued in August: “We remain highly focused on unlocking the full potential of the Jones Soda brand and delivering profitable growth, which we believe will produce significant shareholder value accretion over the long term.
“We’ve made great strides as an organisation to get us to this point, but there is much work ahead to capitalise on all the opportunities at hand.”
He added that in terms of innovation, plans were in store to launch a gut-health soda Pop Jones and a “lower-calorie, Latin-inspired soda alternative”, Fiesta Jones.
