Jones Soda's Big Bet: Costco Deal Signals Canadian Craft Soda Boom

SEATTLE, WA – February 02, 2026 – Jones Soda Co. is making a significant push into the Canadian market, announcing a major expansion of its distribution program with warehouse retail giant Costco. The move will see large-scale shipments of the iconic craft soda roll out to select Costco locations across Canada, leveraging the brand's powerful momentum after a historically strong financial performance.

This partnership represents more than just additional shelf space; it is a strategic play that underscores Jones Soda's remarkable operational turnaround and its ambition to capture a larger share of the North American beverage market. The Seattle-based company is betting that Canadian consumers, much like their American counterparts, are increasingly seeking unique, premium beverage options, and that a high-volume retailer like Costco is the ideal partner to meet that demand at scale.

A Foundation of Financial Turnaround

The confidence to undertake such a significant expansion is built on a foundation of unprecedented financial success. The company's announcement follows what it describes as the “strongest quarter in the Company’s history.” Preliminary unaudited results for the fourth quarter of 2025 paint a picture of explosive growth. Net sales are projected to land between $11.0 million and $11.3 million, a staggering increase of approximately 329% compared to the $2.6 million reported in the same period of 2024.

Even more telling is the dramatic improvement in profitability. Jones Soda anticipates a gross profit margin between 32% and 34% for the quarter. This marks a monumental reversal from the negative 36% margin reported in Q4 2024, a figure that had raised concerns about the company's long-term viability. The positive trend extends across the entire fiscal year, with projected 2025 net sales from continuing operations expected to climb by roughly 37% to over $24 million, while the full-year gross margin is set to improve to the 30-32% range, up from 21.3% in 2024.

This financial resurgence provides the necessary capital and stability to support a large-scale logistical operation like the Costco Canada rollout. It demonstrates to retail partners and investors alike that the company has not only stabilized but is now poised for aggressive, sustainable growth.

The Strategy Behind the Fizz

The company’s recent success is not accidental but the result of a deliberate and disciplined strategic overhaul executed throughout 2025. A key component of this turnaround has been a relentless focus on improving operational efficiency and margins. Jones Soda has actively implemented cost reduction initiatives, targeting major expenses like freighting and warehousing, which have historically eroded profits in the beverage industry.

Management has also focused on what it calls “disciplined cost management,” which has manifested in lower operating expenses. For example, in the first nine months of 2025, selling and marketing expenses fell by 30%, or approximately $1.4 million, compared to the prior year. This was achieved by strategically reducing spend on online marketing and tradeshows, allowing the company to get more impact from a leaner budget. As a percentage of revenue, these expenses dropped from 30.4% to 23.5% over the same period, indicating greater efficiency.

Further bolstering the bottom line, the company has successfully negotiated more favorable terms for co-manufacturing fees, raw materials, and packaging. This, combined with the strategic divestment of its cannabis business in mid-2025 to sharpen its focus on core beverage categories, has transformed the company's financial profile. This renewed focus is exactly what major retail partners like Costco look for.

“We are entering 2026 with clear momentum following our strongest quarter in the Company's history,” stated Scott Harvey, Chief Executive Officer of Jones Soda, in the official announcement. “As we build on this foundation, we remain focused on driving sustainable revenue growth, improving operating leverage, and strengthening our financial profile.”

Tapping the Canadian Market

The expansion into Costco warehouses across Canada is a calculated move to capitalize on the company's operational readiness and the growing consumer appetite for craft beverages. Securing and expanding a partnership with a retail behemoth like Costco provides a level of volume and brand visibility that is difficult to achieve through smaller, independent channels alone. It validates Jones Soda's product appeal and its proven ability to execute complex supply chain demands.

This move aligns with the company's stated strategy to “scale high-velocity SKUs with leading national partners.” By focusing on its most popular products in a high-traffic retail environment, Jones can drive significant sales volume while benefiting from the operational efficiencies it worked to build in 2025. The company expects the program to contribute meaningfully to its net sales in the first half of 2026.

The Canadian beverage market is dynamic and competitive, with large players like PepsiCo and Coca-Cola constantly innovating. However, there is also a clear and growing trend of consumers seeking out brands that offer unique flavors, quality ingredients, and an authentic story—all hallmarks of the Jones Soda brand. While Jones has had a presence in Canada, including a period of growth in its now-divested cannabis segment in 2024, this Costco partnership represents its most significant push into the mainstream Canadian beverage market to date.

From Niche Brand to Retail Powerhouse

For decades, Jones Soda has cultivated a loyal following as a quirky, niche brand known for its pure cane sugar formula, bold flavors, and iconic labels featuring user-submitted photographs. This Costco expansion marks a pivotal chapter in the brand's evolution, demonstrating its ability to transition from a cult favorite to a significant player in mass-market retail without abandoning its craft roots.

The Canadian deal is not the company's first successful collaboration with the retailer. In late 2025, Jones launched a special edition Fallout-themed product in Costco clubs across the United States, a partnership that likely served as a successful trial run, proving the brand's ability to drive sales and manage the logistics of a large-scale program.

As shipments begin to arrive in Canadian warehouses, Jones Soda faces the challenge of maintaining the brand authenticity that fans love while executing at the level a partner like Costco demands. The success of this expansion will be a critical indicator of the company’s long-term growth trajectory, testing whether its revitalized operational and financial discipline can turn a historic quarter into a sustained era of profitability and market leadership in the craft soda space.