Reeds Inc. (REED)

[stockerzzz1]

Presentation Highlights


-16th quarter of 20%+ growth
-we think like a craft brewer
-They took the Extra Ginger Brew and mixed it with B6 to create the Nausea line when CVS contacted them to create it.
-kombucha is growing about 70%
-Reed's is the #2 - running at about $5 million with the new launch
-GT is dominating the market, but he's not doing a lot of marketing
-K is in A&P, Fairway, Gracetis, TJ, WHF, Stop & Shop
-just maturing this would put the brands at $60-80 million

-fastest growing premium soda company, including: IBC, Stewards, Jones, IZZIE (still beating them even though they got bought by PEP)
-very focused on core competency
-Currently #4 player in premium bottle CSD category

-Private label is about 15% of business
-PL has given themselves their best relationships ever with the grocery industry
-PL was the reason the K was developed
-PL allowed Reed's to go to distributors/retailers as partners, not just suppliers

-starting to breakout of regular growth pattern of about 20% per quarter!

-we think we're a better POM Wonderful
-the soft drink industry is the only industry in America that does not have a premium category (hotel, car, ice cream)
-premium is usually 10% of most markets, sometimes 5%, but it started looking like tea, red bull, and vitamin water.
-They've pushed themselves to $40 million and they're about to turn the corner and begin to pull.