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After moving past key operational issues, is Jones Soda finally ready to start delivering a meaningful top line again? That's what JSDA brass indicated on Q3 earnings call this morning after explosive takeup of Fallout-themed entries stoked rush of orders for core CSD line ahead of current Q4 period. "We are seeing significant interest in our Fallout-themed product line, and given the high number of customer purchase orders we have received so far in the fourth quarter for our core soda products, we currently expect significantly increased aggregate sales revenues for our core, modern and adult (Spiked Jones) products," said CEO Scott Harvey. Those PO s have led Jones leaders to anticipate that gross sales in current period, Q4, will exceed $8 mil. Among developments that countered some of the reported progress were coupla setbacks on co's Mary Jones line of hemp-derived Delta-9 bevs. For starters, copacking issue resulted in shortfall in Q3 sales, leaving total co sales below topline recorded in Q1 and Q2. That's been resolved now, CFO Brian Meadows indicated. More significantly, inclusion in gov't funding bill of language that would eliminated hemp-based Delta-9 bevs, a key plank in co's adult platform alongside Spiked. But there's a year to go before implementation and co will weather issue one way or other, execs assured. Harvey and Meadows were reporting on Q3 that saw revenue increase 15% to $4.5 mil. Gross margin widened by over 10 pts to 28.9% from 18.8% thanks to lower trade spend, lower product costs and lower freight & warehousing as new team grappled with persistent operational challenges. Operating loss narrowed to $1.4 mil from $2.6 mil. That left 9-mo revenue off 10.1% to $13.6 mil and operating loss for period at $3.1 mil vs $5.6 mil in year-earlier period. So now the focus turns more toward growth.Fertile Fallout As we reported from recent NACS c-store show, JSDA is bullish about alliance with Bethesda Softworks and its Fallout franchise, both for its own success and for the effect it had on inspiring other properties to approach Jones about collabs (BBI, Oct 20). Some large-format retailers that had given brand the cold shoulder also have warmed up to it now, seeing traffic-driving benefit of Bethesda deal. So alliance helped Jones "establish credibility" and to "open the door to opportunities that were unobtainable before," Harvey enthused.That deal mainly took the form of Bethesda Fallout Vault Tec Supply Pack featuring Sunset Sarsaparilla 4-packs to celebrate Fallout Day and target gaming fans and collectors. Among other features, 1 in 12 bottles carried blue star under the cap, unlocking oppty to enter sweepstakes to win swag like $500 Wasteland Travel Voucher or Nuka-Cola Mini Fridge. Jones invested some marketing $$ in driving social media buzz and worked with specific influencers in Fallout space. It paid a fee to one whose post to followers "just exploded." There was frenzy of fans deluging Costco to secure their share, leaving Jones staff scrambling to replenish inventory, and some items ended up for sale on eBay. Then, this past weekend at Fallout Fan Celebration outside Las Vegas, saw debut of new Rocket Bottle (fins included) in hands of star at on-site "saloon" also sparked frenzy. Efforts like that have "brought us back to relevancy," CEO stated. Further launches are planned for 2026.Other News: Delaying Uplisting Effort, Disappointments at Costco, Walmart Among other developments that came up on call, JSDA has paused its S-1 effort to uplist to Nasdaq exchange, deeming it wiser to continue to solidify foundation before revisiting issue next year. In any case, Nasdaq recently stiffened capital requirements. In response to questions, execs also acknowledged coupla retail disappointments. A test they had earlier touted of 12-pk variety pack of core glass bottles in Costco units in SE region had disappointed. "Didn't meet the threshold of what Costco was looking for," Harvey said, perhaps because brand doesn't yet boast "a lot of notoriety in the Southeast." But failure doesn't close door to future efforts and Jones is back to pitching Costco on new ideas, he said. Then there was pitch to Walmart of co's new line of Pop Jones gut pops. The 5 flavors got great feedback and there was talk of a possible test before buyer moved on and effort was put on hold until replacement is able to revisit. Still, brand has gotten full range into regional retailers like Meijer, Jewell and Fiesta Foods, tho co is looking to revamp formula to lower input costs without undermining flavor profiles regarded as key differentiator.Agency Vet Schnabel Advising on Marketing Among other moves co has taken in recent wks has been to recruit as interim CMO, apparently on contract basis, the agency vet Eric Schnabel, who's had extended stints at likes of Fallon, Leo Burnett and in-house team at Meta.Business as Usual on D9 for Now Jones brass said it's biz as usual as they await final guidance on D9 legislation in coming 60 days. They plan to work closely with other orgs "to advocate for responsible science-based regulation" while setting contingency plans.

Jones Soda Reports Soft Q3 Topline but Says Fallout Alliance Yielding Deluge of Q4 Orders; Wait & See on Mary Jones D9 Line

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