NEW YORK - Two rival beverage makers have agreed to terms that would combine the companies: Jones Soda and Reed??s. Although the merger may seem a bit unusual, it will keep Jones from folding.

CNN Money reports: "The rare 'takeunder?? arrangement highlights how close to the brink Seattle-based Jones has come. Profitable for most of its 22-year history, Jones drew a wide fan base to its premium sodas in offbeat flavors like bubblegum and mashed potato. But by 2007, the company was fighting the fallout of a failed expansion effort, compounded by a difficult economy and shrinking soda sales...Jones reported a loss of $1.5 million in the quarter ended Sept. 30. It finished the quarter with $6 million in cash on hand, down from the $11.7 million it held nine months earlier."

Jones tried to reduce expenses over the past year but could not make its way back to profitability.

"Unfortunately, the challenging economic environment combined with our current capitalization has made it extremely difficult to operate on a standalone basis," Jones Chairman Rick Eiswirth said Tuesday in a prepared statement. "We believe the combination of Jones and Reed's will create a substantially larger beverage business with a more powerful operating platform and a brighter future."

Meanwhile, Jones CEO Joth Ricci announced that he is leaving his position, effective April 2.

Reed's CEO Chris Reed told CNN Money that his company "has a lot of respect for Jones ?" and we generally don't have a ton of respect for other companies because we think what we do is the best in the world," adding that the rival soda maker is an "extremely fun, playful, youth-oriented brand."