Industry analysts recently forecasted that the flavored water market will grow to $800 million by 2009, which is more than a four-fold rise from 2004 statistics. This huge potential increase is caused by consumers changing tastes from sugary soft drinks to healthier “New Age” beverages. In the next three years, flavored water and other non-carbonated drinks are expected to outsell soft drinks.
The increased awareness of the health risks of consuming too much sugar, studies focused on proper hydration and a new variety of new beverages are fueling the increasing sales. According to Beverage Marketing Corporation, wholesale dollar sales in the New Age beverage segment were approximately $16.9 billion two years ago.
Reed’s, Inc. manufactures and markets New Age beverages, premium ice cream and candies. Two of its Ginger Brews were ranked in the top three spots among other natural sodas.
Last year the company’s sales grew 11% to $10.5 million with gross profits increasing 9% to $8.4 million. As a result of its December IPO, Reed’s was able to expand its sales force and distribution network, consequently increasing March quarter sales 52%.
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