Mr. Scott Harvey reports

JONES SODA GROWS MARKET FOOTPRINT WITH EXPANDED DISTRIBUTION NETWORK

Jones Soda Co. is increasing its sales and distribution network, including securing two new direct store delivery partners servicing major retailers in first quarter 2025 alone. The new distributors are enlarging Jones's market footprint, generating significant incremental sales and validating the company's decision to expand beyond its craft soda roots with a diversification of its product portfolio.

• In the DSD business segment, which represents 31 per cent of the company's total gross revenue, Jones has increased its distribution network from 75 partners to 81 over the past 15 months. These new relationships are helping the company increase penetration in key national and regional retailers, including Kroger and Albertson-Safeway banners, Meijer, HyVee, Publix, Wakefern-Shoprite, and others in 37 states.
• In the broadliner business segment, which represents 9 per cent of the company's total gross revenue, Jones established a new partnership with Dot Foods in 2024 to expand its foodservice channel, as well as increase regional grocery and mass channel penetration. With this new relationship, plus the company's new products, Jones's five broadline distributors generated a 198-per-cent gross revenue increase in 2024 and are trending at a 128-per-cent Q1 2025 increase compared with Q1 2024.
• In the hemp-derived (HD9) business segment, which involves specialty distributors and represents 11 per cent of the company's total gross revenue, Jones has signed 32 distribution partners since launching its Mary Jones hemp Delta-9 line in January, 2024, to provide a legal alternative to its regulated cannabis-infused products. Four of those were signed in Q1 2025 to support expanding distribution, including two new states. The HD9 channel is currently trending at a 281-per-cent Q1 2025 gross revenue increase compared with Q1 2024.

In addition to Mary Jones HD-9, new product lines that have helped Jones attract new distribution partners include Pop Jones, a collection of 30-calorie functional prebiotic sodas with four grams of sugar and a generous dose of fibre and immune support; Fiesta Jones, a line targeting convenience store customers with Latin-influenced flavours packaged in resealable aluminum bottles; Spiked Jones, hard craft sodas made with four of Jones's pure cane sugar soda flavours; and most recently Zero Cola, the first of a series of three zero-calorie sodas scheduled to launch this year.

"All of the product development work we've done to grow the business by taking advantage of changing consumer tastes and emerging beverage segments is paying off by helping us attract new distribution partners while also adding value for our current distributors," said Jones Soda chief executive officer Scott Harvey. "These achievements are already translating into increased sales and helping us meet our goal of establishing a profitable growth path for the Jones brand."

About Jones Soda Co.

Jones Soda is a leading developer of sodas and hemp-infused beverages known for their premium taste, unique flavours and unconventional brand personality. Launched in 1996 as the original craft soda brand, the company today markets a diverse portfolio of core craft sodas, premium adult beverages and modern beverages under the Jones Soda brand, as well as a line of award-winning hemp beverages and edibles leveraging Jones's trademark flavours under the Mary Jones brand.