In a Seattle Times article dated December 21st, Melissa Allison wrote that South Lake Union-based soda company Jones Soda is considering a bid from Big Red, a company headquartered in Waco, Texas (that poor town which we will all forever associate with FBI/insane cult people showdowns).
Allison reports that Big Red offered $7.9 million for the company. When you put that in the context of Google’s 500 million dollar bid for Yelp.com—a company that has done little more than convince regular people to provide free content—you learn a valuable 21st century lesson: making things doesn’t pay.
Over the past 18 months, Jones has laid off about 75 people in an effort to cut costs and now has about 40 employees.
Last month, it posted a loss of $1.5 million for the third quarter, a 72 percent improvement from a year earlier despite an 18 percent drop in revenue.
Fans of Jones’ tofurky and gravy soda might want to stock up—something tells me we won’t be seeing that again if the bevey company goes to Texas. It’s always sad to see a good-hearted local company go, at least we still have delicious Dry Soda.