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Jones Soda Quietly Exits Cannabis
This piece was first published on Substack on June 25, 2025. We’ve reformatted it here for all our new readers to enjoy—because the insight still holds, and the story’s too good to miss.
Jones Soda has never been afraid to get weird—turkey & gravy flavors, photo contests on bottle labels, and a cult following to match. But not even a brand this bold could make cannabis beverages work.
Just two years after launching with plenty of fanfare, Jones sold off its entire cannabis beverage line for $3 million. The deal wasn’t splashy, but it was smart: a real-world example of how to walk away without burning it all down.
This wasn’t a failure. It was a well-timed, well-structured divestment—a reminder that sometimes, the best move is knowing when to stop pouring.
Anatomy of the Exit
Rather than a full cash deal, Jones structured the exit creatively:
$3M total consideration, including:
$489,399 cash upfront
$2.5M via staggered promissory notes (paid over 36 months)
A 10-year royalty deal (3.5% of gross sales on all “Mary Jones” products)
A licensing agreement ($150K in year 1, $225K per year after)
It’s not a blockbuster, but it’s strategic: guaranteed near-term capital + long-tail upside if the brand takes off under new ownership.
This kind of exit structure—common in lower mid-market deals—is all about balance: risk for the buyer, potential reward for the seller.
Why the Cannabis Pivot Fell Flat
Jones jumped into cannabis the way many brands did: with optimism, branding muscle, and market timing. But the path to scale was anything but smooth.
Here’s what got in the way:
Fragmented state-by-state distribution made scaling a logistical nightmare
Federal restrictions limited marketing, banking, and operations
Brand fit issues—a soda brand with a playful image didn’t quite land in a cannabis market that prizes quality, trust, and regulation
Even with early momentum in California and Washington, the numbers didn’t justify the long-term lift. Jones chose to pivot, not persist—and that’s the lesson.
🧃 From the Tower
This wasn’t a billion-dollar boom or bust—it was something more valuable: a disciplined, drama-free exit.
It’s easy to admire bold entries into hot markets. But there’s real power in a clean, creative exit strategy—especially when it avoids ego and focuses on what’s next.
Jones Soda now walks away with:
Cash now
Cash later
Royalties that don’t require further effort
A lighter balance sheet and renewed focus
And that’s the fizz we respect.
Resources
Disclaimer: Some of the links below may be affiliate links*
Sources & Further Reading:
Tools & Platforms You May Find Useful:
Kumo – AI-powered deal sourcing and CRM tailored for M&A professionals
BizBuySell – The largest online marketplace for buying and selling small businesses
Acquire.com – Streamlined platform to buy and sell startups and small businesses
MeetAlfred.com – LinkedIn and multichannel outreach automation
Outscraper – Web scraping tools for local business data, Google Maps, and more
GetCalley – Free auto-dialer for outbound calling and lead follow-up
Postale.io – Affordable custom domain email hosting
eVirtual Assistants - Hire a VA from the Philippines
Hostinger - Affordable, fast, and beginner-friendly web hosting with a built-in AI website builder to launch your site in minutes.
Beehiiv – A newsletter publishing platform built by newsletter creators
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