Shares of Jones Soda Co., the maker of Fufu Berry and Blue Bubble Gum soft drinks, fell as much as 7.1 percent after Starbucks Corp. decided to stop selling its sodas so it can devote more cooler space to food.
Jones Soda gets less than 1 percent of its $39 million in annual sales through Starbucks, the soft-drink company's chief financial officer said. Agreements to sell drinks at Wal-Mart Stores Inc. and Ruby Tuesday Inc. restaurants will "more than make up for" the loss, Hassan Natha said in an interview.
Shares of Jones Soda fell 89 cents, or 5.7 percent, to $14.79 at 2:07 p.m. New York time in Nasdaq Stock Market composite trading. They have gained 20 percent this year.
Starbucks plans to stop selling Jones Soda at company-owned stores in the U.S. at the end of June so it can put more salads and sandwiches in coolers, said spokesman Brandon Borrman. The company has added warm breakfast sandwiches, books and CDs as it tries to expand sales beyond coffee.
Jones will lose out on the publicity that selling at Starbucks generated, Mark Astrachan, an analyst at Stifel Nicolaus & Co., wrote in a note. "We consider the news negative because of the high visibility afforded by the relationship," he wrote.
Starbucks will continue to carry Jones Soda at its Canadian stores, Natha said.
Both Starbucks and Jones are based in Seattle. Starbucks has more than 13,700 coffee shops, with almost three-quarters of them in the United States
The Seattle Post-Intelligencer reported Starbucks' plans on its Web site late Wednesday.