CORRECTING & REPLACING Reed's, Inc. New Co-pack Production Agreement with Primary Brewery Partner Expected to Significantly I...
06 Novembro 2008 - 1:00AM
Business Wire
Please replace the release with the following corrected version due
to multiple revisions. The corrected release reads: REED'S, INC.
NEW CO-PACK PRODUCTION AGREEMENT WITH PRIMARY BREWERY PARTNER
EXPECTED TO SIGNIFICANTLY IMPROVE MARGINS AND PROFITABILITY --
Expected to Result in 500 to 600 Basis Points of Gross Margin
Improvement in 2009 -- -- Estimated 2009 Savings of Over $1.0
Million -- Reed�s, Inc. (NASDAQ:REED) announced today that it has
entered into a new co-pack production agreement with its primary
brewery partner. The new agreement, effective November 1, 2008,
extends for a period of three years from the effective date and
grants Reed�s the option to extend the contract for an additional
one year period. Under the agreement, Reed�s main co-pack facility
will continue to brew and produce, bottle and package Reed�s
products. The new agreement replaces Reed�s previous agreement with
its brewery partner. Christopher Reed, Founder and CEO of Reed�s,
Inc., stated, �This new agreement enables us to significantly
improve our gross margins and save us over $1 million in
manufacturing cost in 2009. We are pleased to announce our
re-negotiated co-pack agreement. The brewery�s commitment to
quality extends over 100 years since it began operations in 1905.�
Mr. Reed continued, �Our ability to successfully re-negotiate our
co-packing agreement is the result of the exceptional growth we
have experienced over the last three years. Our revised agreement
enables Reed�s to substantially reduce co-packing production costs,
our largest manufacturing expense, resulting in tremendous gross
margin improvement. We are especially pleased to achieve these
margin enhancements and expense savings while maintaining the
quality of our Ginger Brews and Premium Sodas.� The re-negotiated
agreement is part of Reed�s margin enhancement efforts and is
anticipated to result in 500 to 600 basis point improvement in the
Company�s gross margin in 2009. About Reed�s, Inc. Reed�s, Inc.
makes the top selling premium sodas in natural food markets
nationwide and is currently selling in 10,500 supermarkets in
natural foods and mainstream. Its six award-winning non-alcoholic
Ginger Brews are unique in the beverage industry being brewed not
manufactured and use fresh ginger, spices and fruits in a brewing
process that predates commercial soft drinks. In addition, the
Company has acquired 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. 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, supermarket chains, retail stores and
restaurants nationwide and in Canada. For more information about
Reed�s, please visit the company�s website at:
www.reedsgingerbrew.com or call 800-99-REEDS. SAFE HARBOR STATEMENT
Some portions of this press release, particularly those describing
Reed's goals and strategies, contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. While Reed's is working to achieve those goals and
strategies, actual results could differ materially from those
projected in the forward-looking statements as a result of a number
of risks and uncertainties, including difficulties in marketing its
products and services, need for capital, competition from other
companies and other factors, any of which could have an adverse
effect on the business plans of Reed's, its reputation in the
industry or its expected financial return from operations and
results of operations. In light of significant risks and
uncertainties inherent in forward-looking statements included
herein, the inclusion of such statements should not be regarded as
a representation by Reed's that they will achieve such
forward-looking statements. For further details and a discussion of
these and other risks and uncertainties, please see our most recent
reports on Form 10-KSB and Form 10-QSB, as filed with the
Securities and Exchange Commission, as they may be amended from
time to time. Reed's undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
Reeds (NASDAQ:REED)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Reeds (NASDAQ:REED)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024