Reed S Inc's Customers Performance
REED
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REED's Source of Revenues |
Reed S Inc's Corporate Customers have recorded an advance in their cost of revenue by 3.58 % in the 3 quarter 2023 year on year, sequentially costs of revenue grew by 41.89 %. During the corresponding time, Reed S Inc revenue deteriorated by -3.52 % year on year, sequentially revenue grew by 16.03 %. While revenue at the Reed S Inc 's corporate clients recorded rose by 7.97 % year on year, sequentially revenue grew by 28.93 %.
• List of REED Customers
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Reed S Inc's Customers have recorded an advance in their cost of revenue by 3.58 % in the 3 quarter 2023 year on year, sequentially costs of revenue grew by 41.89 %, for the same period Reed S Inc revnue deteriorated by -3.52 % year on year, sequentially revenue grew by 16.03 %.
• List of REED Customers
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Customers recorded net loss in Q3 |
Customers recorded net loss |
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Reed S Inc's Comment on Sales, Marketing and Customers
we target a niche in the estimated $100 billion carbonated and non-carbonated
soft drink markets in the US, Canada and International markets. Our brands are
generally regarded as premium and natural, with upscale packaging and are loosely
defined as the artisanal (craft), premium bottled carbonated soft drink category.
The soft drink industry is highly fragmented and the craft soft drink category
consists of such competitors as, Henry Weinhards, Thomas Kemper, Hansen’s,
Izze, Boylan and Jones Soda, to name a few. These brands have the advantage of
being seen widely in the national market and being commonly known for years through
well-funded ad campaigns. Despite our products having a relatively high price
for an artisanal premium beverage product, minimal mass media advertising and
a relatively small but growing presence in the mainstream market compared to many
of our competitors, we believe that results to date demonstrate that Reed’s
Ginger Brews and Virgil’s sodas are making strong inroads and market share
gains against some of the larger brands in the market.
Kombucha is the largest growth segment of the functional beverage category of
drinks and foods, including coconut water, yogurt and fresh juices. Among this
broader category, the refrigerated juices and functional beverages segment grew
by approximately $200 million in 2012 to an estimated market of approximately
$600 million (50% growth), according to SPINS data. Kombucha comprises the overwhelming
majority share of this explosive growth and comprises most of the segment. It
is generally believed that the segment will continue to expand at a strong rate
over the next few years. Other functional drinks in this category are also expanding
sales at healthy rates, primarily coconut water and fresh pressed juices. Consumer
awareness and demand for functional drinks is increasing and we feel that Kombucha
and other cultured drinks will be in the forefront of this expanding market category.
We sell the majority of our products in the natural food store, mainstream supermarket
chains and foodservice locations, primarily in the United States and, to a lesser
degree, in Canada and Europe.
Natural Food Stores
Our primary and historical marketing and distribution source of our products has
been natural food and gourmet stores throughout the US. These stores include Whole
Foods Market, Trader Joe’s, Sprouts, The Fresh Market, Earth Fare, and New
Seasons, just to name a few. Our brands are also sold in gourmet restaurants and
deli’s nationwide. With the advent of large natural food store chains and
specialty merchants, the natural foods segment continues to grow each year, helping
fuel the continued growth of our brands.
Mainstream Supermarkets and Retailers
We also sell our products to direct store delivery distributors (DSD) who specialize
in distributing and selling our products directly to mainstream retail channels,
natural foods, and specialty retail stores. Our brands are further sold directly
to some retailers who require that we sell directly to their distribution centers
since they have developed their own logistics capabilities. Examples of chains
that fall into the “direct” category are retailers such as, Costco,
Trader Joe’s, some Whole Foods Market Regions and Kroger.
Supermarkets, particularly supermarket chains and prominent local/regional chains,
often impose slotting fees in order to gain shelf presence within their stores.
These fees can be structured to be paid one-time only or in installments. We utilize
selective slotting in supermarket chains throughout the US and to a lesser degree,
in Canada. However, our local and national sales team has been able to place our
products without having to pay significant slotting fees. Slotting fees for new
item placements on average have cost anywhere between $10 to $150 per store, per
new item.
Food Service Placement
We also market our beverages to industrial cafeterias (corporate feeders), and
to on premise bars and restaurants. As our business continues to mature, we intend
to place our beverages in stadiums, sport arenas, concert halls, theatres, and
other cultural centers as long-term marketing and pouring relationships are developed
within this business segment.
International Sales
We have developed a limited market for our products in Canada, Europe and Asia.
Sales outside of North America currently represent less than 1% of our total sales.
Sales in Canada represent about 1.3% of our total sales. We believe that there
are good opportunities for expansion of sales in Canada and we are increasing
our marketing focus on that market. Other international sales become cost prohibitive,
except in specialty sales circumstances, since our premium sodas are packed in
glass, which involves substantial freight to move overseas. We are open to opportunities
to export and to co-pack internationally and expand our brands into foreign markets,
and we are holding preliminary discussions with trading companies and import/export
companies for the distribution of our products throughout Asia, Europe and South
America. We believe that these areas are a natural fit for Reed’s ginger
products, because of the importance of ginger in international markets, especially
the Asian market where ginger is a significant part of diet and nutrition.
Distribution, Sales and Marketing
We currently have a national network of mainstream, natural and specialty food
distributors in the United States and Canada. We sell directly to our distributors,
who in turn sell to retail stores. We also use our own internal sales force and
independent sales representatives to promote our products for our distributors
and direct sales to our retail customers. One of the main goals of our sales and
marketing efforts is to increase sales and grow our brands. Our sales force consists
of senior sales representatives in five geographic regions across the country
who are supported in their region by local Reeds sales staff. Generally, our sales
managers are responsible for all activities related to the sales, distribution
and marketing of our brands to our entire distributor and retail partner network
in North America. We distribute our products primarily through several national
natural foods distributors and an increasing number of regional mainstream DSD
distributors. We have entered into agreements with some of our distributors that
commit us to “termination fees” if we terminate our agreements early
or without cause. These agreements call for our customer to have the right to
distribute our products to a defined type of retailer within a defined geographic
region. As is customary in the beverage industry, if we should terminate the agreement
or not automatically renew the agreement, we would be obligated to make certain
payments to our customers. We are in constant review of our distribution agreement
with our partners across North America. We also offer our products and promotional
merchandise directly to consumers via the Internet through our website, www.reedsgingerbrew.com.
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Reed S Inc's Comment on Sales, Marketing and Customers
we target a niche in the estimated $100 billion carbonated and non-carbonated
soft drink markets in the US, Canada and International markets. Our brands are
generally regarded as premium and natural, with upscale packaging and are loosely
defined as the artisanal (craft), premium bottled carbonated soft drink category.
The soft drink industry is highly fragmented and the craft soft drink category
consists of such competitors as, Henry Weinhards, Thomas Kemper, Hansen’s,
Izze, Boylan and Jones Soda, to name a few. These brands have the advantage of
being seen widely in the national market and being commonly known for years through
well-funded ad campaigns. Despite our products having a relatively high price
for an artisanal premium beverage product, minimal mass media advertising and
a relatively small but growing presence in the mainstream market compared to many
of our competitors, we believe that results to date demonstrate that Reed’s
Ginger Brews and Virgil’s sodas are making strong inroads and market share
gains against some of the larger brands in the market.
Kombucha is the largest growth segment of the functional beverage category of
drinks and foods, including coconut water, yogurt and fresh juices. Among this
broader category, the refrigerated juices and functional beverages segment grew
by approximately $200 million in 2012 to an estimated market of approximately
$600 million (50% growth), according to SPINS data. Kombucha comprises the overwhelming
majority share of this explosive growth and comprises most of the segment. It
is generally believed that the segment will continue to expand at a strong rate
over the next few years. Other functional drinks in this category are also expanding
sales at healthy rates, primarily coconut water and fresh pressed juices. Consumer
awareness and demand for functional drinks is increasing and we feel that Kombucha
and other cultured drinks will be in the forefront of this expanding market category.
We sell the majority of our products in the natural food store, mainstream supermarket
chains and foodservice locations, primarily in the United States and, to a lesser
degree, in Canada and Europe.
Natural Food Stores
Our primary and historical marketing and distribution source of our products has
been natural food and gourmet stores throughout the US. These stores include Whole
Foods Market, Trader Joe’s, Sprouts, The Fresh Market, Earth Fare, and New
Seasons, just to name a few. Our brands are also sold in gourmet restaurants and
deli’s nationwide. With the advent of large natural food store chains and
specialty merchants, the natural foods segment continues to grow each year, helping
fuel the continued growth of our brands.
Mainstream Supermarkets and Retailers
We also sell our products to direct store delivery distributors (DSD) who specialize
in distributing and selling our products directly to mainstream retail channels,
natural foods, and specialty retail stores. Our brands are further sold directly
to some retailers who require that we sell directly to their distribution centers
since they have developed their own logistics capabilities. Examples of chains
that fall into the “direct” category are retailers such as, Costco,
Trader Joe’s, some Whole Foods Market Regions and Kroger.
Supermarkets, particularly supermarket chains and prominent local/regional chains,
often impose slotting fees in order to gain shelf presence within their stores.
These fees can be structured to be paid one-time only or in installments. We utilize
selective slotting in supermarket chains throughout the US and to a lesser degree,
in Canada. However, our local and national sales team has been able to place our
products without having to pay significant slotting fees. Slotting fees for new
item placements on average have cost anywhere between $10 to $150 per store, per
new item.
Food Service Placement
We also market our beverages to industrial cafeterias (corporate feeders), and
to on premise bars and restaurants. As our business continues to mature, we intend
to place our beverages in stadiums, sport arenas, concert halls, theatres, and
other cultural centers as long-term marketing and pouring relationships are developed
within this business segment.
International Sales
We have developed a limited market for our products in Canada, Europe and Asia.
Sales outside of North America currently represent less than 1% of our total sales.
Sales in Canada represent about 1.3% of our total sales. We believe that there
are good opportunities for expansion of sales in Canada and we are increasing
our marketing focus on that market. Other international sales become cost prohibitive,
except in specialty sales circumstances, since our premium sodas are packed in
glass, which involves substantial freight to move overseas. We are open to opportunities
to export and to co-pack internationally and expand our brands into foreign markets,
and we are holding preliminary discussions with trading companies and import/export
companies for the distribution of our products throughout Asia, Europe and South
America. We believe that these areas are a natural fit for Reed’s ginger
products, because of the importance of ginger in international markets, especially
the Asian market where ginger is a significant part of diet and nutrition.
Distribution, Sales and Marketing
We currently have a national network of mainstream, natural and specialty food
distributors in the United States and Canada. We sell directly to our distributors,
who in turn sell to retail stores. We also use our own internal sales force and
independent sales representatives to promote our products for our distributors
and direct sales to our retail customers. One of the main goals of our sales and
marketing efforts is to increase sales and grow our brands. Our sales force consists
of senior sales representatives in five geographic regions across the country
who are supported in their region by local Reeds sales staff. Generally, our sales
managers are responsible for all activities related to the sales, distribution
and marketing of our brands to our entire distributor and retail partner network
in North America. We distribute our products primarily through several national
natural foods distributors and an increasing number of regional mainstream DSD
distributors. We have entered into agreements with some of our distributors that
commit us to “termination fees” if we terminate our agreements early
or without cause. These agreements call for our customer to have the right to
distribute our products to a defined type of retailer within a defined geographic
region. As is customary in the beverage industry, if we should terminate the agreement
or not automatically renew the agreement, we would be obligated to make certain
payments to our customers. We are in constant review of our distribution agreement
with our partners across North America. We also offer our products and promotional
merchandise directly to consumers via the Internet through our website, www.reedsgingerbrew.com.
REED's vs. Customers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Reed s Inc |
7.34 |
46.69 |
-15.70 |
36 |
Hyatt Hotels Corporation |
16,754.34 |
6,667.00 |
220.00 |
164,000 |
Restaurant Brands International Limited Partnershi |
0.00 |
7,072.00 |
1,708.00 |
6,900 |
H World Group Limited |
121,336.67 |
2,010.00 |
-260.00 |
15,699 |
Mcdonald s corporation |
204,086.36 |
25,493.70 |
8,468.80 |
200,000 |
Walmart Inc |
494,240.55 |
611,289.00 |
11,292.00 |
2,300,000 |
Target Corporation |
77,571.30 |
107,412.00 |
4,138.00 |
450,000 |
The Kroger Co |
40,737.75 |
147,797.00 |
1,881.00 |
420,000 |
Costco Wholesale Corp |
325,355.34 |
248,828.00 |
6,794.00 |
304,000 |
Host Hotels and Resorts Inc |
14,693.27 |
5,311.00 |
752.00 |
160 |
Berkshire Hathaway Inc |
492,047.10 |
349,271.00 |
77,710.00 |
0 |
Chipotle Mexican Grill inc |
76,859.25 |
9,871.65 |
1,228.74 |
97,660 |
Hilton Worldwide Holdings Inc |
54,414.90 |
10,235.00 |
1,151.00 |
142,000 |
Marriott International Inc |
75,263.96 |
23,713.00 |
3,083.00 |
120,000 |
Darden Restaurants Inc |
20,882.70 |
11,013.10 |
1,008.30 |
178,956 |
Portsmouth Square Inc |
2.94 |
33.86 |
-2.12 |
3 |
Mgm Resorts International |
15,797.17 |
16,164.25 |
1,314.92 |
59,000 |
Caesars Entertainment inc |
8,600.65 |
11,528.00 |
828.00 |
49,000 |
Las Vegas Sands Corp |
38,621.76 |
10,372.00 |
1,431.00 |
44,700 |
Melco Resorts and Entertainment Limited |
9,891.11 |
2,012.36 |
-956.46 |
23,078 |
Boyd Gaming Corp |
6,294.45 |
3,738.49 |
620.02 |
24,300 |
Monarch Casino and Resort inc |
1,383.56 |
212.15 |
82.45 |
2,300 |
Century Casinos Inc |
86.41 |
550.21 |
-18.49 |
2,786 |
Greentree Hospitality Group Ltd |
0.00 |
135.82 |
-60.18 |
2,394 |
Churchill Downs Inc |
8,787.62 |
2,461.70 |
417.30 |
5,000 |
Canterbury Park Holding Corp |
109.35 |
61.44 |
10.56 |
237 |
Noodles and Company |
84.95 |
509.48 |
-3.31 |
0 |
SUBTOTAL |
2,103,903.47 |
1,613,763.21 |
122,838.53 |
4,612,173 |
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