Without a doubt Canada has spawned world class entertainers: Jim Carrey; Michael Buble; Michael J. Fox; Donald Sutherland; to name a few. In Gold Medal Brands I will highlight some of the world class businesses that have Canadian roots. In this installment I speak with Peter Van Stolk founder of Jones Soda.
Jones Soda is a brewed in Canada success story. Edmontonian Peter Van Stolk founded Jones in 1996 after building up a successful distribution business with third party beverage brands. From the beginning Stolk saw an opportunity to form his own irreverent fun soft drink brand that was everything the big boys (Coke & Pepsi) were not. He succeeded beyond his wildest dreams.
By 2000 the company was growing quickly and he relocated to Vancouver, B.C. By 2001 financing and distribution pressures forced another relocation to Seattle Washington. From 2001 to 2008 Peter border hopped from family life in North Vancouver to a surging soft drink business headquartered in Seattle.
An in-depth 2005 Fast Company article summed up the brands cache as: “It has created buzz, produced 30% yearly revenue growth in a flat beverage market, drawn major distribution partners such as Starbucks and Target, and brought in $30 million in annual revenue. That [key growth] ingredient: you. Virtually everything about a Jones Soda, from labels to flavors, comes from customers. That’s important because “the reality is that consumers don’t need our s — -,” van Stolk says unapologetically…So how do you sell an unnecessary product? If you’re van Stolk, a 41-year-old former ski instructor who started Jones eight years ago, you hand the product over to customers.”
- Jones Soda founder Peter Van Stolk at Blenz Granville/Broadway
I caught up with Peter at Blenz Granville & Broadway location recently. He shared with me a frank assessment of the current state of marketing in general, Jones Soda today and his 2007 departure from the business he built.
RP: Firstly, let’s talk about this idea of brand, and where it lives. Some social media gurus – such as Chris Brogan or even you in the Fast Company article – suggest brand wholly exists within the purview of the customer. Is that true or does the organization itself have any control over brand?
PVS: Well, both viewpoints are true. I believe that you build a brand like a home. You need to have architectural drawings and ensure the home is built with natural airflow and ventilation. Once the home is built though, your customers determine the airflow. In that way the brand is a bit like a dance – to and fro – between what you say and what the customers say. If you remember in that Fast Company article I unequivocally said that you can’t just hand over every decision to customers. You have to steward the brand.
RP: OK, that’s cool. Now, fast forward to 2007. What exactly went down at Jones that left you on the outside?
PVS: I completely take responsibility. I invited individuals onto the board who I thought would bring a level of sophistication to the business and look attractive to investors. The latter was true [investor appeal] but in reality the board member who was Chief Marketing Officer at a $2B beverage company had little relevance to a $40M irreverent soda brand. And unfortunately some of those very board members saw an opportunity to put themselves into senior management positions at my expense. They were in, I was out – it was that simple.
RP: That sucks! What are you up to now?
PVS: After leaving Jones I spent a short period wondering if I had the right stuff. I lost a bit of confidence frankly. I think I’m on the right path now. I have a brand consultancy, The Tree Fort Group, and we are currently working with a half-dozen packaged goods companies. I am usually asked by the clients to help them with marketing but once engaged I find they need help with generic business topics: contracts; growth; management; legal; disputes. All things I’m familiar with.
RP: That sounds great. What about the future?
PVS: For now, I’m sitting on five boards: four corporate boards and one non-profit. The non-profit is an amazing Santa Barbara based organization Vitamin Angels . I am currently looking at buying a business, a packaged goods brand that needs revitalizing. I’m just trying to decide how badly I want back in the game.
As a true marketing pioneer, it’s clear that whatever Peter chooses to do next, he will be wildly successful.
– Rich Patterson