a savage condemnation of Jennifer Cue and JOnes in the market today
with the investment in mnst by coke, the sector is spotlighted like it has not been in years. the fact that jsda is down on almost no volume with not the slightest bit of market interest in an exploding sector, is a sad condemnation of the brand at this stage. after two years of efforts in the greatest bull market in US history they have managed to drop sales consistently while still losing money, selling more shares, taking on debt and losing distribution and margin. however, most critically, the brand was not re-invented for 2014. it is now a nostalgia brand with failed products, poor product reviews and comical conference calls devoid of any actual data like same store sales. coke is buying into monster for the energy drink market. jones completely failed at introducing an energy drink for the exact same reasons it is floundering now. this suicidal, tautological belief that if they produce something, its cool and people love it. newsflash before filing bankruptcy: they don't. what is so so astonishing is the refusal to do anything about it, other than hire people who think jones is still cool and who worked there back in the day when the street thought it had potential. then the street saw reality.
maybe an entrepreneur with a clue can come in and act like jones is a start-up in 2014. fiat? seattle seahawks? same thing. i assume these deals were done because of executive perks. i bet at 5:01pm the offices are dark.
i bet on weekends, the mountain bikes are all deployed and the offices are dark. as they lose millions and coke snickers at a dying company.
low margin model is to blame....and no capital to fix ....it doesn't matter who you put in place ,even if they know Quantum physics....they won't be able to make chicken salad out of chicken shiattt....
at some point someone with a pedigree is going to tell them convincingly that their products - artificially flavored, colored and preserved soda in kids flavors, is a giant market loser. the clown - or clowns - who decided to market a natural soda, but forgot to publish the ingredients might get fired too. it would be nice to see management hired that is content to manage the company as opposed to going hiking with their dog and gawking at fiats.