Even in good times, Jones’ attempt to enter the canned-soda market would have been ill-advised. Coming as it did just as the consumer economy was teetering and just before the financial markets began to swoon, it can now only be called a major misstep. Jones this week has laid off about 40 percent of its workers, of which there were only about 110. According to CNNMoney.com, the ‘21-year-old cult soda company’s struggles are a microcosm of the challenges facing small companies in a weakening U.S. economy. With consumer spending down and credit tight, any misstep becomes a potentially fatal mistake.’But most other small companies didn’t make Jones’ mistakes. The brand’s identity was tied to its weird, colorful glass-bottled soda products with names like ‘fufu berry’ and ‘bug juice.’ People ‘ mainly kids and young adults ‘ sick of drinking Coke and Pepsi products out of cans or plastic bottles, but who nevertheless wanted a sugary, carbonated soda, gladly paid a premium for Jones’ products. ‘But in 2007, CNN notes, ‘the company posted an $11.6 million loss, created largely by founder Peter van Stolk’s attempted expansion into the canned-soda market.’ More.
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