Archive for May, 2010

New Rule Maker Goes Down The Wrong Road

May 27, 2010

Just saw that Jones Soda just announced that they have just gained availability in Wal Mart – over 3,800 stores.  You would think this would be a reason to celebrate – hey the world’s largest retailer wants to sell their products. I am not so sure. Quick, name the last successful beverage incubated in Wal Mart? Name me any beverage that has incubated in Wal Mart? I can’t think of any.

Don’t get me wrong, I wish Jones Soda all the success in the world. They are what we call a ‘New Rule Maker’.

They have redefined the carbonated soft drink market – going right at the powerhouses Coke and Pepsi.  They have carved out a very loyal consumer base.

It’s just that we believe in fishing where the fish are.  Retailers of Wal Mart’s size make their money selling tons of goods for low prices.  They demand low costs and expect high volume.  This is difficult, we think impossible, for brands like Jones.

Will they get overwhelmed by slow movement and fail (our guess), or will they suceed?  We hope the latter, but fear the former.