Reed's, Inc. makes the top selling natural sodas in the natural foods industry sold in over 10,500 natural food markets and supermarkets nationwide. In 2009, Reed’s started producing Private Label natural beverages for select national chains. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top selling root beer line in natural foods, the Virgil's Root Beer product line, and the top selling cola line in natural foods, the China Cola product line. Recently, Reed's introduced its ‘Reed’s Rx’ line of ginger-based nausea relief products for the drug store market and acquired the Sonoma Sparkler brand, a sparkling juice celebration drink with an established customer base. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams.
Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains. For more information about Reed's, please visit the company's website at: http://www.reedsgingerbrew.com or call 800-99-REEDS.
First quarter sales increased 17% to a record $4.0 million. Gross profit in the first quarter increased 26% to $1.1 million. Gross margin in the first quarter increased by 200 basis points to 27%. Operating expenses in the first quarter decreased by $86,000, or 7% to $1.2 million. EBITDA for the first quarter was $172,000, as compared to an EBITDA loss of $159,000 in the first quarter of 2009 (See EBITDA table at end of this release for further non-GAAP information). Cash plus revolving LOC availability was $1.3 million at March 31, 2010, as compared to $1.5 million at December 31, 2009. Working capital increased by approximately $500,000 during the quarter, to $2.5 million Ramped up private label business with the addition of third private label customer. Began production/shipment of new ‘Reed’s Rx’ Remedy for Nausea and Motion Sickness. ‘Reed’s Rx’ Natural Ginger Nausea Relief gained placements in over 7,000 CVS/Pharmacy locations nationwide. Expanded relationship with Kroger’s and Woodman’s Food Market; and established new relationship with Associated Wholesale Grocers (AWG).
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