Seattle’s Jones Soda Co (USA) (CNSX: JSDA) (OTCMKTS: JSDA) is divesting its cannabis beverage business assets to focus on its new alcoholic libations, health-conscious pop and long-standing line of fizzy drinks.
On Monday, the renowned drink maker revealed that it has sold its cannabis-derived THC beverage line to the private company MJ Reg Disrupters LLC for US$3 million. Jones got US$489K in cash upfront and the remainder will be paid in chunks over a three-year period.
The Mary Jones product lineup with marijuana-derived THC also includes gummies and 59-millilitre liquid “shooters” with 10 milligrams of the plant’s psychoactive cannabinoid. However, it should be noted that Jones will be continuing to distribute its line of Mary Jones products with hemp-derived THC.
“We are excited about the opportunity to build on the Mary Jones legacy,” said MJ Reg Director Joe Oblas. “Jones Soda created a unique and high-quality product, and we are committed to continuing its innovation and reach.”
In March last year, the Washington-based beverage company entered the liquor business with the launch of its Spiked Jones Hard Craft Soda drinks. The intoxicating beverages come in tall cans with 6.7 per cent alcohol.
Additionally, Jones Soda has been focused on its new Pop Jones line: a healthier batch of soda than the standard variety with ingredients such as agave fibre, stevia extract, zinc and pure cane sugar. Pop Jones made its debut in September.
“I believe this divestiture enables us to sharpen our strategic priorities and accelerate investment in our core soda, functional beverage and adult beverage categories,” Jones chief executive Scott Harvey said.
In Q1 this year, Jones reported a 7.3 per cent year-over-year decline in revenue from Mary Jones at US$380,000, reinforcing the company’s decision to let another operator take over the pot pop business.
But, recent success with hemp-derived THC products has prompted the beverage maker to retain its ownership of that variety of Mary Jones merchandise.
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