Reed’s, a name that has become synonymous with delicious, natural sodas to countless customers at over 13k natural food stores and supermarkets across the U.S., is seeing solid response from a loyal fan base with the recently announced (Feb 28) roll out of four new flavors in their Reed’s Culture Club Kombucha line.
Consumers and vendors alike have been going through the product so fast and developing new tastes that REED had to answer the call for more flavors, adding Cabernet, Coconut Water Lime, Passion Mango Ginger, and Pomegranate Ginger to the already successful lineup of Cranberry Ginger, Goji Ginger, Hibiscus Ginger Grapefruit, and Lemon Ginger Raspberry. These organic Kombuchas use a proprietary culture to achieve an extremely healthy mix of beneficial enzymes, organic acids, and probitoics that help rapidly detoxify the system.
Business has been booming, with REED maintaining a stranglehold on the number one slot in natural foods root beer and cola via the Virgil’s Root Beer and China Cola lines. Bottom-line proof of how successfully the company’s product array has been at striking a chord with consumers is immediately evident in the recently reported (reported Feb 26) 20% jump in annual revenues for 2012, with the entire Virgil’s line of premium sodas and Reed’s Ginger Brews being strong drivers of the $30M plus figure.
Private label business was up 23% for the year, and with some new private label contracts negotiated during 2012 now in-hand, the company is poised to really roar into 2013. Investors can look forward to more strong revenue generation from REED’s core product categories, as well as the white-hot Kombuchas. Confidence is high at REED that they have a winning product mix and a clear target market engagement vector. The solid revenue growth already reported, combined with a 20% growth in overall business for branded products in Q4 2012 (as well as early Q1 2013), is directly fueling the company’s expansion/resolve.
More and more supermarkets are catching on and with confections like the Reed’s Ginger Candies and Reed’s Ginger Ice Creams flanking their exceptional, fine microbrew-quality beverages, it is little wonder there is such a huge response from consumers. The best ingredients and artisan brewing methods have really distinguished REED in this segment, with loyal customers and new converts emboldening the company to push out into new territory. Products like the new Cabernet Kombucha for instance evolved as a direct response to customer feedback about the company’s Kombuchas being used as a wine substitute.
In just a short time since the Q2 launch last year of Reed’s Kombucha line, the company has rocketed up to the second slot in the segment and the four new flavors should help REED to lay hands on the leader title very soon. The Kombuchas have taken off so well that it is not uncommon for this one category to sell more than all other REED products combined at a given store, a bold indicator of how much potential there is here and how close the company is to clinching the number one slot in Kombuchas. Consumers are waking up to the degradation of their natural gut bacteria and the benefits of probiotics for helping to restore balance. REED has clearly hit on a compelling solution with mouth-watering organic Kombuchas to suit every taste. As more and more Americans change their tastes towards healthy alternatives, Reed’s lineup of beverages are poised for massive growth by standing at the crossroads for consumers looking to get out of a place where all their beverage consumption habits are dominated by unhealthy sodas and other drinks.
Anyone who has tried a Reed’s Original Ginger Brew already knows the way out of unhealthy soda city. This incredible, effervescent brew has over 17 grams of fresh ginger root in it and you can still taste the cherry, honey, lemon, lime, and pineapple, with the only sweetener being pure cane sugar you can feel good while still enjoying a delicious treat.
For more information on Reed’s, visit www.ReedsInc.com
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