We develop, manufacture, market and sell natural non-alcoholic carbonated soft
drinks, Kombucha, candies and ice creams. We currently manufacture, license,
market and sell several unique product lines:
Reed’s Ginger Brews,
Virgil’s Root Beer, Cream Sodas, Dr. Better and Real Cola, including ZERO
diet sodas,
Culture Club Kombucha,
China Colas,
Reed’s Ginger candy and ice creams,
Sonoma Sparkler and other juice based products.
We also have a private label business.
We sell our products throughout the US and in select international markets.
We started in specialty gourmet and natural food stores and have moved more
into mainstream over time. We estimate that our products are in approximately
40,000 accounts in the US with approximately 12,000 of those being mainstream
supermarkets. We sell our products through a network of natural, gourmet and
beer distributors and direct to certain large national retailers.
We produce and co-pack our beverage products in part at our facility in Los
Angeles, California, known as the Brewery and at contracted co-packing facilities
in Pennsylvania and Indiana. These co-pack facilities typically service the
eastern half of the United States and nationally for certain products that we
do not produce at The Brewery.
Key elements of our business strategy include:
increase our relationship with and sales to the approximately 15,000 supermarkets
that carry our products in natural and mainstream and capture more of the 35,000
supermarkets nationwide,
expand our distribution network by adding regional direct store delivery (DSD’s)
and additional direct accounts,
stimulate consumer demand and awareness for our existing brands and products
through promotions and advertising,
develop additional product flavors under our brands (brand extensions) and other
new products, including specialty packaging and alternative uses for our products,
develop and produce private-label products for select customers,
lower our cost of sales for our products by gaining economies of scale in our
purchasing, and
optimize the size and focus of our sales force to manage our relationships with
distributors and retail outlets.
We create consumer demand for our products by:
supporting in-store sampling programs of our products, and
generating free press through public relations, and
advertising in store publications, and
maintaining a company website (www.reedsinc.com), and
active social media campaigns on facebook.com, twitter.com and youtube.com,
and
participating in large public events as sponsors, and
in the recent past deployed a national television commercial on cable television
networks.
We offer natural premium carbonated soft drinks (CSD), which are a growing
segment of the estimated $10 billion CSD market nationwide. Within natural food
store markets, we are among the top-selling natural soft drinks. This market
is steady and growing. We also sell in major grocery chains nationally. The
trend in grocery stores is to expand offerings of natural products and we have
the scale and capability to develop these direct customer relationships.
We primarily manufacture and sell beverages and candies or other ginger related
products. We make all of our products using premium all-natural ingredients
and our beverage line is GMO free. Our primary brands are our Reed’s ginger
brew line, our Virgil’s line of root beer and our Culture Club Kombucha.
Our candy products that include Reed’s Crystallized Ginger Candy and Reed’s
Chews represent a lesser portion of revenues. We have sold ginger ice cream
in prior years.
We are always working on ideas and products to continue expanding our Reed’s
Ginger Brews, Virgil’s product line, Reed’s Ginger Candy product
lines and packaging styles. Among the advantages of our self-operated Brewery
are the flexibility to try innovative packaging and the capability to experiment
with new product flavors at less cost to our operations or capital.
Our private label products require continual product development. We are able
to be nimble and innovative, producing new products in a short amount of time.