This Beverage Company from Los Angeles, California has reported; through the first three quarters of 2007 a 31% increase in Net Sales to $10.4 million, 34.9% increase in Gross profit to $2 million and Gross margin increased to 19.5%. The company is seeing tremendous growth and is leveraging their image as the number one soft drink in the health foods market. Currently Reed Inc. is seeking to acquire talented sales personnel from other successful beverage makers to further their distribution channels.
The third quarter saw net sales up almost 40% due to high demand for new product releases. Operating expenses increased sharply up 150% due to costs of ramping up production to enter other markets and becoming a publically traded company. Reed also reduced its interest expense by more than 50% by paying down some of the company’s line of credits and long-term debt. Ending the third quarter Reed Inc. had $2.4 million in cash and cash equivalents and inventory of $3.3 million.
Reed Inc. entered two new markets in Boston and Colorado and says it is on track to meet its goal of opening 10 new markets in the second half of 2007. The growth is helped by the core brands of Virgil and Reed’s. Reed’s is looking to become a globally recognized Brand and is investing heavily in sales and marketing efforts. They are working diligently to establish dominance in the “New age beverage market”.
Having gone public last year, Reed Inc. has been busy structuring its executive team that CEO Mr. Reed, feels is largely complete. Especially with the addition of CFO David Kane who is expected to strengthen Reed’s financial position and set them up for future growth projections.
Mr. Reed is quoted saying, “A major component to our future growth strategy will be establishing Reed’s as a global brand. While we are early in our international expansion efforts, we see tremendous opportunity to increase our international presence through additional points of distribution within select international markets including Mexico, Latin America, Europe, India and the Asia Pacific region.”
Having ample working capital and a surplus inventory, Reed’s, Inc has their sights set on expanding and future domination in this Niche beverage market.
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