Friday, December 08, 2006

Jones Soda(JSDA)Goes Back to Basics

Jones Soda's recent announcement of the introduction of a sugar sweetened soda, as opposed to the more typical corn syrup sweetened variety, went largely unnoticed by the Street. Can you blame them? What's the big deal. Corn syrup or sugar? Who cares, what's the difference anyway?

Soda afficionados know that there is a huge difference. Pure cane sugar just plain tastes better. Some of us go to great lengths prior to Passover (your very Presbyterian Cheap Stocks editor included) to obtain supplies of Coca Cola's kosher version of Coke, made with sugar, produced in limited quantities and available only in certain parts of the country. It tastes like the Coca Cola from many years ago, much better than the corn syrup version, with a much healthier head of foam.

Jones is touting their soon to be released Jones Pure Cane Sugar Soda as a healthier alternative to corn syrup sweetened sodas. While cane sugar is natural, high fructose corn syrup is not. Whether or not there are health benefits is up for debate.

Jones sees this new release as a differentiator in the already highly competitive soft drink market. Ultimately, if taste wins out, perhaps Jones and ultimately shareholders will benefit.

*The author has a position in this stock. This is neither a recommendation to buy or sell this security. All information provided believed to be reliable and presented for information purposes only.

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