Monster Beverage Corp (NASDAQ: MNST), a mid cap marketer and distributor of energy drinks and alternative beverages, has been a monster of a performer since the end of the financial crisis as the stock is up around 308% over the past five years, but could new or overlooked players like small cap beverage stocks Jones Soda Co (OTCMKTS: JSDA), Celsius Holdings, Inc (OTCMKTS: CELH) and Konared Corp (OTCBB: KRED) repeat that performance? A look strictly at the long term performance of all three small caps might have you thinking otherwise. After all, none of these small cap beverage stocks are profitable while the beverage industry can be a long hard expensive slog just to increase market share by one or two points when you are competing for shelf space with industry giants like Pepsi and Coke. But past performance is just that – the past and only part of the story as there is much more to consider about these small cap beverage stocks which could also make them potential acquisition targets by larger beverage players seeking to expand their product line up with innovative products:
Jones Soda Co. Founded in 1987 when company founder Peter van Stolk recognized the potential of emerging "alternative" products in the beverage industry, Jones Soda began as a distributor in western Canada before coming up with its own beverage flavors. In 2000, Jones Soda launched its own energy drink called WhoopAss. It should be mentioned that Jones Soda's share price peaked at around $28 a share in 2007 but has mostly traded below the $1 level since the financial crisis. However, the company has been under a new CEO since 2012 and she has been working to turn the company around. Either way, annual net losses have fallen from the $10 million level in 2009 to under $3 million in 2012. On Tuesday, Jones Soda rose 0.16% to $0.556 (JSDA has a 52 week trading range of $0.25 to $0.91 a share) for a market cap of $21.50 million plus the stock is up 104.4% over the past year and up 20.8% over the past five years.Top Bank Companies To Watch In Right Now
KonaRed Corporation's products are already sold in select Whole Foods, Albertsons, Safeway, Sprouts, Wal-mart, 7-Eleven, and many other retail outlets throughout the US and Canada.
In addition to recent a announcements about getting its products into more retail stores, Konared Corp announced earlier this month that it had entered into a purchase agreement with Lincoln Park Capital Fund, LLC, a Chicago-based institutional investor that is committed to invest up to $12 million of equity capital over the term of the Purchase Agreement; plus at the end of last month, the company also announced a $1 million private placement – meaning KRED probably has enough working capital to keep expanding and developing new products for this year. On Tuesday, Konared Corp rose 0.01% to $0.70 (KRED has a 52 week trading range of $0.59 to $1.36 a share) for a market cap of $45.05 million plus the stock is up 0.01% since last October.
The Bottom Line. Again, all of the above small cap beverage stocks are not yet profitable and have had their share of past performance hiccups, but all of them do have products with the potential to make them the next Monster Beverage Corp.