Reeds, Inc. develops, manufactures, markets and sells natural non-alcoholic and “New Age” beverages, candies and ice creams. Their beverages include Ginger Brews, Virgil’s Root Beer, Cream Sodas, China Colas, and Ginger Juice Brews. Most of their products are sold in specialty gourmet food stores, natural food stores, supermarket chains, retail stores and restaurants in the United States and Canada.
An increase of revenue was revealed in a table showing the net sales in 2004, 2005 and 2006. The company believes that the increase is caused by several factors; their success in Southern California using a direct distribution strategy, the increase in their national distribution, and their increase in direct sales to large retailers.
Under the “Results of Operations”, the company outlined, in detail, the net sales increase. In 2006 net sales increased by $1,014,068, or 10.7%, to $10,484,353. In the Reed’s Ginger Brew product line alone, sales increased from $4,690,000 in 2005 to $5,345,000 in 2006. The Virgil’s Root Beer line increased from $3,345,000 in 2005 to $3,729,000 in 2006. Candy sales also experienced an increase from $755,000 to $800,000.
The company expects their rising sales to continue the trend in 2007 by utilizing recently acquired funds to increase their sales force and marketing.
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