Reed's, Inc. Completes Acquisition of Sonoma Sparkler Brand
28 Outubro 2009 - 9:30AM
Marketwired
Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in
natural food stores nationwide, announced today that it has
purchased the brand and certain assets of Sonoma Sparkler,
including the six beverages sold under the brand, for a price of
$252,000. The Company commenced packing and selling the Sonoma
Sparkler products in June 2009.
Branded sparkling juices sold in the 750ml size bottles
represent a significant part of the overall beverage market. Two
privately-held companies, Martinelli's and Knudsen's are generating
roughly $50 million in sales from mainstream supermarket accounts
alone. According to recent IRI data, Martinelli's generated roughly
$45 million per year in sales and Knudsen's did roughly $5 million
in sales of sparkling juices from this category.
Reed's has proven its success in acquiring and growing brands.
The company bought the Virgil's brand less than 10 years ago when
it was doing approximately $600,000 in sales. Sales have increased
by 1200% in that period of time. Reed's has expanded the SKU's for
Virgil's to 10 items. Today Virgil's is generating roughly $7.5
million in sales and over $2 million in gross profit on an annual
basis.
Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc.,
commented, "The Sonoma Sparklers brand is a natural complement to
our existing product lines. The sales are through our distribution
channels and we share many of the same customers." He added,
"Sonoma Sparklers have great potential. These beverages are 750ml
size celebration drinks, a category that is traditionally sold more
heavily in the 4th quarter. This will enhance our seasonality by
bolstering fourth quarter sales. More strategically, it strengthens
our 750ml production capabilities and re-focuses the efforts of
David Cortz, the founder of Sonoma Sparkler, toward Reed's business
development in private label sales. David's experience is
invaluable in our launch into this new line of business."
Mr. Reed continued, "While the Sonoma Sparkler brand products
will comprise a small part of our overall revenues, the premium
products fit nicely within our corporate strategy. They are
comprised of all natural ingredients of the highest quality, with
strong brand recognition and customer loyalty in the markets that
are served."
The purchase will be paid in cash from gross profits generated
from sales of the Sonoma Sparklers brand over the next 24 months.
The Company stated that because this was a cash purchase and did
not involve stock, it will not result in any dilution to existing
shareholders.
For more information about Sonoma Sparklers please visit:
http://www.sonomacider.com
The Company has filed an 8K, which can be viewed at:
http://www.sec.gov.
About Reed's, Inc.
Reed's, Inc. makes the top selling 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 using fresh ginger, spices and fruits in a brewing
process that predates commercial soft drinks. In addition, 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. 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. For more information about
Reed's, please visit the company's website at:
http://www.reedsgingerbrew.com or call 800-99-REEDS.
Follow Reed's on Twitter at:
http://www.twitter.com/reedsgingerbrew
Reed's Delicious bookmarks at:
http://www.delicious.com/reedsinc
Reed's Facebook Fan Page at:
http://www.facebook.com/pages/Reeds-Ginger-Brew-and-Virgils-Natural-Sodas/57143529039?ref=nf
Subscribe to Reed's RSS feed at:
http://www.irthcommunications.com/REED_rss.xml
More information can be found at:
http://www.irthcommunications.com/clients_REED.php
SAFE HARBOR STATEMENT
Some portions of this press release, particularly those
describing Reed's goals and strategies, contain "forward-looking
statements." These forward-looking statements can generally be
identified as such because the context of the statement will
include words, such as "expects," "should," "believes,"
"anticipates" or words of similar import. Similarly, statements
that describe future plans, objectives or goals are also
forward-looking statements. 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. These risks and
uncertainties include difficulty in marketing its products and
services, maintaining and protecting brand recognition, the need
for significant capital, dependence on third party distributors,
dependence on third party brewers, increasing costs of fuel and
freight, protection of intellectual property, competition 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-Q, 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.
Contact: IRTH Communications, LLC Andrew Haag Managing Partner
1-866-976-IRTH (4784) Email Contact
http://www.irthcommunications.com
http://www.twitter.com/irthcomm
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