Reeds Inc. (REED)

[stockerzzz1]

Chris Reed: Kombucha Sales Should Approach $5 Million for the Year

The recent press release has the investor conference webcast recorded.

Some highlights:

Around 14:00 the kombucha talk starts, Chris says, "So we jumped into that category. It already has a run rate of a couple million after the first month. At the end of the year, it should be running close to $5 million per year.

You know it's really hard to predict these things, the $200 million (total kombucha category), if we can grab $15-20 million we will consider that a modest success. If we get to $100 million, we'll feel like we really did an aggressive good job for the company. But you know what, it's at its infancy. We don't know, but it's what you can expect from an aggressive, nimble, young company that scrapped to stay in business and is now moving into profitability."

Now what does this do? Based on modest projections, we might be doing $.06 to $.10 in earnings per quarter next year with the addition of this. From a company that wasn't profitable last year."

31:30 - Current distribution of kombucha: "We're in about 500 stores and the last 300-400 came in within the last week."

"We started out in the West Coast about a month ago.... There's not enough data points but it's like I just launched 10-20 new Extra Ginger Brews... It looks good right now, these things fly...We look good. We just hung out at the Baltimore Natural Products Show and we were at the front of the show. We weren't at the show, we were the show. We gave over 10,000 bottles out, and the feedback we've gotten back has been very exciting."