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Reed's, Inc., maker of the top-selling sodas in natural food stores nationwide, said it sustained a one-time loss on a private label contract in the amount of $412,000 during the second quarter, when it announced the financial results for its second quarter ended June 30, 2013 today.
Revenues increased 22 percent in the second quarter to $9.5 million in 2013, compared to 2012. Six month revenues increased 23% to $17.6 million.
James Linesch, CFO at Reed's Inc. commented, "Our second quarter results were overshadowed by the loss reserve that we provided on a private label contract. Had that contract been completed as planned, our revenues for the quarter would have been close to $10 million and we would have posted profits for the quarter."
"All of our branded product categories are showing consistently strong growth," stated Chris Reed, Founder and CEO at Reed's Inc. "Demand for our brands outstripped our production capabilities leaving us short of our true potential for the quarter. We are working quickly to upgrade our operational efficiencies to capture all the increased demand from around the country we are presently experiencing. The investments that we've been making in rolling out our kombucha nationally are just starting to pay off, and we anticipate that rapid growth will continue in this category."
In 2009, Reed's started producing private label natural beverages for select national chains. Reed's products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.