Highlights
“Sales are accelerating for our branded and private label products,” said Chris Reed, founder, chairman and CEO of Reed’s Inc. “We came in ahead of our revenue estimates. Profit margin on our new private label customers is expected to improve as we digest the start up costs. Our branded business is growing nicely with our private label business expanding faster. Our plan is to use private label to increase gross profits and invest these funds into the growth of our brands. For the record, we are only making non-competitive products for our private label customers.”
Reed added, “Our fourth quarter is going very strong. We see sales acceleration in 2011 for both our brands and private label business.”
James Linesch, Reed’s chief financial officer, said: “Our results reflect a proof of concept on many levels. Our marketing efforts delivered sales of 23% more cases of branded sodas during the third quarter than last year, without margin erosion. Our Los Angeles plant produced record volumes as we continued to fulfill significant private label orders, with strong backlog, and we are successfully introducing our new Zero product line with minimal product introduction costs.”
Source: Reed’s Inc
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