Jones Soda Co., Seattle, reported a 9.5 percent decline in revenue to $3.9 million for the second quarter of 2014, ending June 30. This equates to a net loss of $429,000 compared with a net loss of $95,000 in the prior-year period. Gross margin decreased to 22.5 percent of revenue, compared with 28.8 percent of revenue last year. Additionally, operating expenses decreased by 3.1 percent to $1.27 million, compared with $1.32 million last year.

The company attributes these results to key distributor transitions in certain regions and increased costs of production due to commodity glass prices and special packaging for a major retail chain.

“As we complete the restructuring process of our business, we are now shifting the management team’s focus from stability toward growth and profitability,” said Jones Soda Chief Executive Officer Jennifer Cue in a statement. “I am extremely pleased with the significant improvements we have achieved in our operating structure over the long term. We have made some key investments in the second quarter of 2014 that impacted our net loss; however, these were mission-critical expenditures to build new distribution in certain regions and to foster a growing relationship with a major international retailer. With the diverse Jones product portfolio and upcoming innovations in products, programs and partnerships, we are excited for our future.”

Jones Soda’s portfolio consists of premium carbonated soft drinks under the Jones Soda, Jones Zilch and Jones Stripped brand names.