Let’s suppose for one moment that you have the single greatest invention since sliced bread. You’ve spend countless hours perfecting it, and you know it will be something that everyone will enjoy and desire. Now that it’s completed, is anyone knocking on your door to get it? Not likely. Without the proper advertising, and distribution channels, no one would know you exist.
Advertising however comes in a myriad of avenues. You can do print ads, you can do radio spots. You can do Television, and targeted cable spots. You can have a web site and submit to the search engines. But without a doubt, the two most powerful forms of advertising a company can do, is 1) have people rave about your product and 2) get your product “out there” so that people can see it. The most effective advertising is where the consumer sees the product on the shelf, so they can get the look and feel of it, and then of course, seeing the product being used.
When it comes to a foodstuff consumable, such as a fruit drink, soda, water, etc, getting the product some “shelf space” in the grocery or specialty store is one of the most important aspects of increasing sales. The young lady pushing her shopping cart down the aisle will indeed stop to check out the products with the right buzz words. Words such as “all natural” or the “finest ingredients”. So, consider this; what better way to get some shelf exposure, than to have your brand carried by the biggest distributors? There is no better way.
Reed’s, Inc. (REED), headquartered in Los Angeles, California, develops, manufactures, markets, and sells natural non-alcoholic New Age beverages, as well as candies and ice creams. New Age beverages is a broad category that includes natural soda, fruit juices and fruit drinks, ready-to-drink teas, sports drinks, and water. Well, just last month, Reed’s inked up a broad agreement with Mesa Distributing, to have their products distributed throughout all of San Diego County. Mesa, one of the premier distributors of new age beverages and beers founded in 1978, employs some 255 people and services a whopping 4,400 retail accounts.
By teaming up with the largest and best known distributors, Reed’s gets the benefits of an established distribution company, and the inherent sales their employees will help create. Distributors that demand and deserve the respect that a Mesa Distributing carries often have a large sway factor in what the grocer should stock on the shelves, and where it should appear on those shelves. Just the ability to have your distributor get your product on the “eye level” shelf is worth a small fortune in future sales.
It’s partnerships like this that has allowed Reed’s to meet and exceed their sales and growth goals for the 2007 year. In the third quarter alone, sales grew by a stunning 39% year over year from 2006. With an experienced management team and smart marketing decisions, more partnerships like the one presented with Mesa will develop and Reed’s will get that all important “visibility” that creates even more demand. Build it and they won’t come. Build it properly and display it correctly, and they’ll knock down the door to get it. Reed’s is displaying it correctly and investors should take note of the subtle but highly successful way they’ve done it. For investors looking for a growth company, Reed’s warrants a very close look.
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