The non-alcoholic beverage industry is booming; according to a U.S. Market Research Report, the beverage industry was worth nearly $79 billion in 2004, and with the inception of energy and specialty drinks, that number continues to rise. Reed’s, Inc. (NASDAQ: REED) is taking its part in the bullish market by setting strategic business plans and goals and maintaining a commitment toward growing top line results, becoming cash flow positive, bottom line profitability and maximized shareholder value.
To reach these overall goals, the company has focused on the production, marketing and distribution of its high quality product line, including its non-alcoholic ginger brews, ginger juice brews, Virgil Root Beer and China Cola.
Reed’s is expanding its California facility with the recent $1.7 million purchase of land and an additional building. With capacity already up 10% from the first quarter of 2007, the company intends on improving its gross margin. From here the company will center on increasing its national direct sales and distribution network. A few months ago the company hired sales professionals and secured a distribution agreement with Burke Distributing Corporation to saturate the Boston area.
Consumer awareness is promoted through retail stores, trade shows, telemarketing, direct mail, and advertisements through publications such as Vegetarian Times and New Age magazine. Reed’s has also established relationships with retail stores to create in-store draught displays and an on draught program which has already been installed at Fox Studios commissaries and about 12 restaurants in Southern California.
As the company gains U.S. popularity, the next goal is to step into the global scene. Reed’s recently attended the world’s largest food and beverage fair, the Anuga Food Fair, in Cologne, Germany. More than 150,000 international trade visitors attended the show and were introduced to a variety of beverage companies, including Reed’s. Bob Reed will soon lead the company’s international sales efforts in Mexico, Latin America, Europe, India and the Asia Pacific region.
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