Los Angeles, CA, September 30, 2009 - Reed's, Inc. announced today that it is in active discussions with 25 national chain store retailers regarding producing private label products for them. Reed's had previously announced its intention to private label products that are non-competitive to its existing lines of business.
"Reed's is currently in talks with 25 plus large chain retailers to help with their private label needs," commented Mr. Chris Reed, Founder and CEO of Reed's, Inc. "We are extremely pleased to have already passed our first Good Manufacturing Practices HACCP audit with a major retailer and are moving forward with Private label for two major retailers. We expect to start shipping shortly." Mr. Reed went on to state that, "We estimate that these two initial accounts, that we have been approved for, could represent between $2.5 and $3 million per year in additional business for the company."
"Our goal is to double our business in the next 12-18 months using Private Label as a primary tool. An unexpected benefit of our new private label business is that by strengthening our relationships with our supermarket customers by filling their private label needs, we are getting a surprising amount of new branded business."
Mr. Reed added, "With the increased cash flow and improvement in gross profits, Reed's should be in a position to self-fund growth in our core brands. Gross profits from Private Label business will be used to fuel marketing, advertising and promotions of our brands. Expansion of our core brands is still our number one long-term focus."