Reed’s, Inc. Announces Fourth Private Label Customer

April 29th, 2010 In Newsletter Updates | No Comments

Custom label business expands further with addition of national wholesale grocer

Los Angeles, California, April 28, 2010 — Reed’s, Inc. (NASDAQ:REED-News) (OTC.BB:REEDP-News), maker of the top-selling sodas in natural food stores nationwide, announced today that it has reached its fourth private label agreement with a national wholesale grocer that distributes more than 6,000 products into over 3,500 independent and chain stores in 23 states across the U.S.

Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., stated, “We are known as a premium beverage producer whose products continue to gain appeal through our growing branded and private label business. Expanding our offerings into major supermarket chains and wholesale grocers is a natural fit for us and continues to benefit our brand as we strengthen our relations with key retailers and increase our gross profits. Each new product continues to support our position as the top designer and producer of natural beverages. We continue to focus on higher margin products that do not compete with our branded business for our private label business.” Added Mr. Reed, “Our newest private label customer used a panel of 40 tasters to evaluate our private label product against the national brand and our product won again. It’s exciting beating large existing national brands. We are very confident that our custom label clients will help fuel our profits in 2010 and beyond as our business experiences strong organic growth.”

Reed’s expects to start shipping to this client at the end of the third quarter.

Reed’s, Inc. Announces New Distribution Agreement with Harris Teeter Stores

April 22nd, 2010 In Newsletter Updates | No Comments

Los Angeles, California, April 22, 2010 — Reed’s, Inc. (NASDAQ: REED – News) (OTC.BB: REEDP – News) (“Reed’s” or the “Company”), maker of the top-selling sodas in natural food stores nationwide, announced today that it has expanded its product placement into Harris Teeter Food Markets, which operates 196 stores in high-income urban areas throughout the South. Harris Teeter will immediately begin carrying three SKUs of Reed’s Ginger Brews and three SKUs of Virgil’s branded products.

Christopher Reed, Founder and CEO of Reed’s, Inc., stated, “Harris Teeter is an upscale, cutting edge retailer that is a great fit for our brands. As a leading retailer with a strong commitment to natural and organic product offerings across their regions, Harris Teeter lends an incredible opportunity to develop Reed’s and Virgil’s brand awareness in the greater Southern mainstream market.”

Eddie Pearson, Vice President of the Southern Region for Reed’s, Inc., commented, “Harris Teeter is known for its phenomenal customer service and for its innovations like it’s newly “branded” departments. This is a creative group and we look forward to participating in joint marketing programs with Harris Teeter under our annual “partner-with-purpose” marketing plans. This new enhanced relationship should result in significant increases in sales in this supermarket chain.”

Harris Teeter is a food market chain operating in eight Southern states: North Carolina, South Carolina, Virginia, Georgia, Tennessee, Florida, Maryland and Delaware. At the request of Harris Teeter, Reed’s brands will be distributed through their own distribution network.

Partnership will Expand Reed’s Presence in 196 Stores in Eight Southern States

Reed’s, Inc. Experiences Strong First Quarter Sales for 2010

April 20th, 2010 In Newsletter Updates | No Comments

Increasing Revenues for 2010 Driven by Existing Brands & New Private Label Agreements   April 20, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News) (“Reed’s, or the “Company”), maker of the top-selling sodas in natural food stores nationwide, announced today that the Company anticipates strong first quarter sales following on record fourth quarter revenues, which increased 21% over the prior year.

“We are excited with our fourth quarter 2009 and first quarter 2010 revenue increases. Most of the revenue increases are a result of increases in our branded business. This year we should see continued growth from our core brands as well as significant growth from our new initiatives, including the ‘Reed’s Rx’ line for nausea relief and our growing roster of private label accounts. We expect these newer initiatives, particularly the private label business, to start contributing significantly to revenue growth later this year. There are long lead times associated with getting private label relationships going with the large national chains we are pursuing.” said Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. Added Mr. Reed, “We anticipate a minimum of 20% increase in revenues for fiscal 2010.”

Mr. Jim Linesch, Chief Financial Officer of Reed’s, Inc., commented, “We have kept strong controls over our costs, significantly lowered our operating expenses, and have positioned ourselves for the economic recovery that is now clearly under way.”  He added, “We have been picking up momentum coming out of the economic downturn and are continuing to expand and introduce new products into the market and explore new sales channels.”

Reed’s, Inc. Announces Qantas Airlines Carrying Reed’s Original Ginger Ice Cream

April 14th, 2010 In Newsletter Updates | No Comments

Company Sees Additional Opportunities from Airline Food Services Market Los Angeles, California, April 14, 2010 — Reed’s, Inc. (NASDAQ:REED- News) (OTC.BB: REEDP- News

Reed’s maker of the top-selling sodas in  natural food stores nationwide, announced today that Qantas Airways, Australia’s largest carrier, has begun serving Reed’s Original Ginger Ice Cream on all of its domestic and international flights. ”Qantas is Australia’s premier national airline as well the world’s second oldest carrier, and their decision to carry our super premium ice cream is a testament to both the excellence of their in-flight service and the quality of our products,” said Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “Our Reed’s Ginger Ice Cream is the best tasting ginger product in the world, and is made completely naturally from the finest rBGH-free milk and cream.” Added Mr. Reed, “We think it offers the perfect compliment to the premium, award-winning services passengers have come to know and expect from Qantas.”

Mr. Neal Cohane, Senior VP of Sales and Marketing of Reed’s, Inc., commented, “World renowned airlines such as Qantas are really trend setters, and frequently other airlines end up  following suit. As one of the strongest brands in Australia, we believe Qantas’s decision to carry Reed’s products paves the way for other opportunities for our products in the airline food services industry.”

Grammy Award Winning Garry Meier Show to Host Reed’s, Inc. Chairman Chris Reed

April 12th, 2010 In Newsletter Updates | No Comments

Los Angeles, California, April 7, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News), maker of the top-selling sodas in natural food stores nationwide, announced today that Founder, Chairman and CEO Mr. Chris Reed will be a guest on WGN’s Garry Meier Afternoon radio talk show. The interview with Mr. Reed will be conducted live at 1:30 p.m. Central Daylight Time (CDT) on Thursday, April 8, 2010. A live feed of the show will be available over the internet.

“It will be great to sit down again with Garry Meier as he is a perceptive, witty, and fantastic radio personality. There are so many benefits to a diet that includes the high quality ginger that is used in Reed’s products. Also, the history of ginger itself as a remedy for nausea provides direct support for our new ‘Reed’s Rx’ products,” said Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “Garry has been a long time enthusiastic supporter of our all natural products. The recent launch of our new ‘Reed’s Rx’ line of over-the-counter ginger-based remedies for nausea and motion sickness is directly related to the discussions Garry has had in the past about our products. I look forward to updating him and his listeners on the solid growth picture we are experiencing.”

Meier rose to prominence in Chicago as part of one of the successful radio duos in the country, ‘The Steve & Garry Show.’ The fifteen-year run garnered international publicity, as well as an Emmy for the TV show ‘Greetings From Graceland.’ Meier also gained renown for his highly acclaimed eight-year run on ‘The Roe & Garry Show.’ In addition to these accomplishments, Meier has displayed his wit and energy as a solo host and as a feature reporter for WGN-TV’s morning show.

Reed’s, Inc. Announces Third Private Label Customer

April 12th, 2010 In Newsletter Updates | No Comments

Los Angeles, California, April 07, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News), maker of the top-selling sodas in  natural food stores nationwide, announced today that it has reached its third private label agreement with a major international food company. Reed’s expects to begin shipping to its third custom label client’s chain of 145 U.S.-based supermarkets later this year. “We continue to see significant upside to our private label business, which has allowed us to tap into new sales channels with some of the largest and best known retailers in the country,” said Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc.

“Our third private label deal with a major international food company highlights our ability to significantly grow our business by bringing creative, high-quality products to market that meet our private label clients’ exacting specifications and needs.” Mr. Reed added, “In fact, our third customer will also be picking up a number of our branded products, which reinforces the positive effect our growing private label relationships with mainstream supermarket chains are having on increasing our branded business line.”

According to a recent research report, titled “Recession, Recovery and Store Brands: What Consumers Are Saying Now,” published for the Private Label Manufacturers Association and conducted by GfK Custom Research North America, shoppers who identify themselves as ‘frequent’ buyers of store brands are at an all-time high, and some 57% say they buy private label products frequently, a figure that has been increasing and was under 55% a year ago. The research report found more than six in 10 American consumers said they plan on buying more private label as they attempt to stretch their food dollars. The full report can be retrieved here (PDF).

Mr. Reed concluded, “We recognize the growing trend in private label consumption, and hope to have 7 to 10 new private label customers by the end of 2010.  As a result, we anticipate a record year as our financials begin to reflect the hard work we have put into this initiative. Since our private label clients have a long lead time to implementation, we expect most of the benefits will be felt in the third and fourth quarters of 2010. The strong increases in growth and profits that we expect to achieve from these accounts will allow us to further drive brand awareness and sales for our premium products and increase shareholder value as we take our business to the next level.”

Trade theTrend features Reed’s Profile on YouTube

April 12th, 2010 In Newsletter Updates | No Comments

Check out the Reed’s profile YouTube video or view the video in our video player.

New Reports from Crystal Research

April 12th, 2010 In Newsletter Updates | No Comments

Crystal Equity Research has issued a new report on REED’S, INC. (REED:  NASDAQ) with analysis of 4Q09 results, and updated outlook and view on 2010 earnings.  Click here to Access This Report or copy the following into your browser:

This report is available without a subscription.  Subscription fees have been prepaid by the issuer, an agent of the issuer or an interested third-party.

Please read the important disclosures at the end of all Crystal Reports and Weekly Comments.

Reed’s, Inc. Announces Operating Results for 2009

April 1st, 2010 In Newsletter Updates | No Comments

Company Realizes Record Fourth Quarter Sales Growth,

Margin Improvement and Significant Cost Reductions in 2009

Los Angeles, California, March xx, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (“Reed’s” or the “Company”) maker of the top-selling sodas in natural food stores nationwide, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2009. Significant highlights of the results include:

• Fourth quarter 2009 sales increased 21%, over the prior year, to a record $3.5 million.
• Sales for the year ended December 31, 2009, were $15.2 million, which did not decrease from 2008.
• Gross profit for the year ended December 31, 2009, increased to $3,612,000, a 7% increase from fiscal 2008.
• Operating expenses before asset impairment charges decreased by 27% in fiscal 2009.
• The Company’s EBITDA loss for 2009 was $542,000, as compared to $3,073,000 in 2008, a $2.5 million improvement (See EBITDA table at end of this release for further non-GAAP information).
• Cash balance plus unused revolving line of credit was approximately $1.5 million at December 31, 2009.
• Working capital increased to $2.0 million at December 31, 2009, from $636,000 at 2008 year-end.
• Long-term debt, aside from capitalized lease financing, decreased to $71,000 at year-end, from $1.7 million in 2008.

Operating expenses before asset impairment charges decreased by $1.9 million in fiscal 2009, over the prior year, with a 37% decrease in selling and marketing costs and a 16% decrease in general administrative costs.  Asset impairment charges are a non-cash expense recorded in connection with the sale-leaseback transaction completed in June, 2009.  The reduction in selling and marketing expenses of 37%, or $1.4 million, is primarily a result of re-focusing of our core sales efforts toward increasing grocery chain business.

Long-term debt includes $130,000 in capitalized equipment leases and $2.2 million of capitalized facilities lease.  The Company is required to capitalize a long-term lease obligation, due to certain terms.  This liability is diminished by the monthly lease payments for the facilities, in a pro-rata amortization computation, and does not represent a separate debt of the Company that must be repaid.

Reed’s reported a net loss attributable to common shareholders in fiscal 2009 of $2,582,000, or $0.28 per share, versus a net loss of $3,838,000 in 2008, or $0.43 per share.

“Our results reflect successful execution of our strategy for 2009,” said Mr. Chris Reed, Founder and Chief Executive Officer of Reed’s, Inc., “We reduced our expenses, improved our margins and developed a number of new customer relationships that will have an increasing positive impact on our sales.  While our sales were flat in 2009, we weathered the recession of 2008-2009 without decreases, which is far ahead of our competitors.  The carbonated soft drink category of beverages declined by over 2% last year, after declining 3% in the prior year. Specialty categories declined by higher rates. However, Reed’s is now on a sales uptick, and we are out-pacing our peers in the industry.”

Mr. Jim Linesch, Chief Financial Officer of Reed’s, Inc., stated, “As a result of our efforts, Reed’s is well-capitalized going into 2010, with a minimal amount of debt.  We have the working capital we need to continue our expansion and to introduce new products that are in high demand.”

Added Mr. Reed, “We are excited about the prospects for our business in 2010 and believe we have the right team in place to execute on our growth strategy and create substantial value for our shareholders. We achieved a number of milestones in 2009 that we that we are building on this year. These include the launch of our private label business, where we hope to increase the number of private label accounts to a total of 7 to 10 by the end of 2010, and the launch of our new ‘Reed’s Rx’ product line for the drug store market. This represents an exciting new avenue of growth as we begin to roll out the product in major drug stores and groceries nationwide.”

Concluded Mr. Reed, “In 2010, we expect to continue to experience strong organic growth from our existing brands, new product lines, and increasing number of private label agreements. Our business is healthy and picking up momentum as we successfully execute on the initiatives we have defined. Therefore, we are reiterating our guidance for double-digit growth in 2010 as we explore new opportunities to build the Company and increase shareholder value.”