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Bits & Pieces -- Jan. 25, 2011

January 24, 2011
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Reed's Inc., Los Angeles, Calif. maker of sodas sold in natural food stores nationwide, announces revenues increases of 34 percent and more than $20 million for 2010, surpassing its 30 percent guidance, as product sales increased across all categories.


Soda Maker Expansion Financed by PL gross profits and growth

Reed's Inc., Los Angeles, Calif. maker of sodas sold in natural food stores nationwide, announces revenues increases of 34 percent and more than $20 million for 2010, surpassing its 30 percent guidance, as product sales increased across all categories.

In 2009, Reed's started producing private label natural beverages for select national chains.

"Our private label business continues to grow even faster [than branded products], says Chris Reed, founder, chairman and CEO. “This is helping to fuel the growth of Reed's and Virgil's brands as we work with some of the best, well-known retailers in the world. As we stated in the past, we continue to finance the growth of our brands from the gross profits of our private label business. We expect to see the same kind of revenue acceleration in 2011 as in 2010 as we launch new branded products and increase our distribution into mainstream supermarkets and natural food stores."

"We believe our record top line results for 2010 reflect the integral value of Reed's business model with our private label initiative fueling the increase of sales of our branded products. We continue to see momentum build here," Reed adds.
 

Number of Convenience Stores Grew in 2010

The number of U.S. convenience stores grew 1.2 percent over the past year and stands at 146,341 at the end of 2010, according to the NACS/Nielsen TDLinx 2011 Convenience Industry Store Count. This increase reversed a rare two-year drop in the store count and is the highest number of stores ever recorded, eclipsing the 146,294 stores from the 2008 count.

“The interruption of service in many areas, caused by many traditional fuel-based operators exiting the industry, is turning around. Those locations are now in the hands of capable retailers who see the consumer demand and are willing to fill it,” says NACS Vice Chairman of Research Fran Duskiewicz, a senior executive vice president of N.Y.-based Nice N Easy Grocery Shoppes.

In 1981, the store count was 67,500 stores, in 1991 the store count was 105,800 stores and in 2001 the store count was 119,800 stores.

 “Despite some industry pressures, the convenience store count has grown dramatically since 2001,” says Todd Hale, Nielsen’s senior vice president, Consumer & Shopper Insights. “That said, the convenience store industry is widely fragmented, and we expect to see more consolidation as big-box retailers and some supermarket chains continue to add gas pumps to their sites.”
 

Weis Markets Expands Relationship with Crowley Foods

As the result of a new agreement, Crowley Foods’ Binghamton, N.Y. plant will process, supply and deliver Weis Quality milk to the company’s twelve New York stores, including eight Weis Quality milk products in plastic gallons and half gallons containing homogenized, fat-free, one and two percent milk.

“As a locally focused retailer, we’re strong believers in buying high-quality, local products that are also local favorites – Crowley Foods fits the bill on both counts,” Brad Kochenour, Weis Markets regional vice president, says. “Our new agreement will also ensure that milk processed in the morning will be on the shelves of our Southern Tier stores later that afternoon.”

Weis Markets Southern Tier stores offer a variety of locally produced products including: Kreher eggs, Felix Roma bread, DiRenzo bread, Battaglini Italian bread, Heidelberg bread, Hoffman’s franks/Polish sausage/liverwurst, Denunzio jar Polish sausage, Pasqualichio seasoned beef, chicken and pork, Cortese pizza, Nirchis pizza, Jim Roma bread, Salamida spiedie sauce, Lupos spiedie sauce and meats and Side Hill goats milk.

Weis Markets currently operates 164 stores in its home state of Pennsylvania as well as Maryland, New York, New Jersey and West Virginia. 

 

 
 

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