Reed’s, Inc. reports company developments for a branded beverage business built around handcrafted, natural ginger beverages and other craft beverage brands. Its updates commonly cover financial results, conference calls, distribution and channel initiatives, product and brand activity under the Reed’s, Virgil’s and Flying Cauldron names, and operating priorities such as sales execution, supply chain efficiency and margin improvement.
Reed’s news also includes governance and capital-structure actions, including executive appointments, board changes, public equity offerings and its completed listing on NYSE American. The company’s beverages are sold through national retail and food-service channels, including grocery, specialty, mass, drug, convenience, club and on-premise locations.
Reed’s Products are Now Available in 500 Loblaws Stores Across Canada
Reed’s, Inc. has partnered with Loblaws Companies Limited to distribute its products in 500 locations across Canada. This agreement enhances Reed’s presence in the Canadian market, allowing consumers to access Reed’s Original Ginger Beer, Extra Ginger Beer, and various Virgil’s sodas in Loblaws' new craft soda section. CEO Norman E. Snyder expressed enthusiasm for the collaboration, highlighting Loblaws' commitment to high-quality, natural ingredients. The partnership targets health-focused consumers, promoting better-for-you beverage options.
Reed’s Inc. (OTCQX: REED) has expanded its product offerings at select Whole Foods Market locations nationwide. The partnership, which started in the late 1990s, now includes seven new products, such as Reed’s Real Ginger Ale and Virgil’s Zero Sugar Craft Sodas. These products feature organic ginger sourced from Peru and will be available from March 2023. CEO Norman E. Snyder expressed enthusiasm for the collaboration, emphasizing mutual success in serving health-conscious consumers. Reed’s is a leader in natural ginger-based beverages, with their products sold in over 45,000 stores.
Reed’s, Inc. (OTCQX: REED) announced the resignation of Chief Financial Officer Tom Spisak, effective March 30, 2023. Spisak, who joined in December 2019, will assist with the transition. Joann Tinnelly, the current Vice President and Corporate Controller since 2018, will serve as interim CFO. CEO Norman E. Snyder expressed gratitude for Spisak's contributions, particularly in enhancing financial discipline amidst challenges from inflation. Spisak's resignation is not due to any disagreements over company operations or financial practices. Reed's continues to lead in natural ginger beverages, sold in over 45,000 stores nationwide.
Reed’s, Inc. (NASDAQ: REED) has announced its transition from the Nasdaq Capital Market to the OTCQX US Market, effective February 16, 2023. This decision follows Reed's inability to meet Nasdaq's shareholders’ equity requirements, causing the company to explore alternatives to avoid a dilutive capital raise. With a recent bridge financing deal of approximately $2.5 million at a 10% coupon, Reed’s remains committed to maintaining its status as a reporting company. CEO Norman E. Snyder emphasized that this strategic move, despite the delisting, is essential for improving profitability and achieving cash flow positivity later this year.
Reed’s Inc. (NASDAQ: REED) has appointed Christopher Burleson as the new Chief Commercial Officer. With over 15 years of sales leadership experience, Burleson aims to enhance profit targets and streamline operations. Previously at Fever-Tree Drinks, he significantly increased retail distribution and product velocity. CEO Norman Snyder expressed confidence in Burleson's ability to drive expansion, leveraging his industry knowledge and energy. Burleson's objective is to grow Reed's customer base and explore profitable opportunities within the market. Reed's specializes in handcrafted, natural ginger beverages and has a strong presence in over 45,000 stores nationwide.
Reed's, Inc. (NASDAQ: REED) announced preliminary financial results for Q4 2022, showing an 18% increase in net revenue to approximately $15.1 million. The company also reported a gross profit surge of 49% to around $3.9 million, with a gross margin improvement of 530 basis points to approximately 26%. Reed's aims for continued double-digit revenue growth in 2023 and projects a shift to positive modified EBITDA by Q2 2023.
Despite increases in annual revenue for FY 2022, gross profit decreased from $13.6 million to $12.6 million. Operating expenses have been reduced by $6 million, contributing to improved cash flow.
Reed’s, Inc. (NASDAQ: REED) announced that the previously scheduled reverse stock split will take effect on January 27, 2023, instead of January 26, 2023, due to processing delays. Each 50 shares will convert to one share, reducing outstanding shares from approximately 126 million to 2.5 million. This split is aimed at increasing the stock price to meet Nasdaq's $1.00 minimum bid requirement. Shareholders will not need to take any action, and fractional shares will be rounded up. The reverse split has been approved by shareholders as of January 24, 2023. For more details, see the Form 8-K filed on the same day.
Reed’s, Inc. (NASDAQ: REED) announced a 1-for-50 reverse stock split effective January 26, 2023, to comply with Nasdaq Capital Market's listing requirements. This action will convert approximately 126 million shares into around 2.5 million shares. Shareholders will not need to take any action to receive their post-split shares, which will also have a new CUSIP number. The company aims to enhance its market price per share and meet the $1.00 minimum bid price requirement.
This reverse stock split follows shareholder approval on January 24 and is part of Reed's strategy to attract new investors and maintain its Nasdaq listing.
Reed's, Inc. reported Q3 2022 financial results, showing net sales of $12.1 million, a decline from $13.4 million in Q3 2021. Gross profit decreased to $2.4 million with a gross margin of 20.1% compared to 28.9% last year. Operating expenses were reduced significantly to $4.9 million, leading to an improved operating loss of $2.5 million. Despite challenges, the company expects to finalize their swing-lid bottle shipments, which could impact future sales positively.
Net sales guidance for 2022 is now $56-59 million.
Reed’s, Inc. (NASDAQ: REED) is set to host a conference call on November 10, 2022, at 5:00 p.m. ET to discuss its Q3 2022 financial results. The company is known for its premium, handcrafted ginger beverages and operates under the brand names Reed’s®, Virgil’s®, and Flying Cauldron®. The conference will include a Q&A session, and interested parties can join via toll-free and international call numbers provided. A live broadcast will be available on the company’s investor relations website, ensuring accessibility for all stakeholders.