Jones Soda to hit shelves at Kmart

Jones Soda of Seattle has signed a contract to sell its drinks in Kmart stores nationwide, but shoppers will have to wait for flavors like candy corn, broccoli casserole and turkey and gravy.

For now, trucks filled with tamer Jones Soda flavors — cream soda, fufu berry, green apple and blue bubblegum — are on their way to Kmart's 1,450 stores.

The soda is in bottles, not the cans that yield higher profit margins.

"We will be more excited as contracts for carbonated beverages in cans arrive," said Nicole Miller, an analyst for San Francisco-based ThinkEquity Partners, which makes a market in Jones Soda stock.

Still, somebody was excited about the Jones announcement. The company's shares climbed 17.2 percent to $9.05 in regular trading Wednesday and rose 5 cents more in after-hours trading.

For now, Target holds the exclusive right to sell Jones Soda in 12-ounce cans under a contract that would have expired July 16 but was extended last week until Dec. 31.

Hassan Natha, Jones' chief financial officer, said it is hard to estimate how much revenue the Kmart relationship could mean. It does not represent an exclusive arrangement.

Other retailers to whom Jones sells directly, rather than through distributors, include Starbucks and Panera Bread.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com