Boston, MA 03/26/2014 (wallstreetpr) – Reed’s, Inc. (NYSE:REED) Chief executive officer was quick to point out that Reed’s experienced solid growth last year, during the presentation of the company’s financial results. Reed’s reported impressive growth in its Culture club Kombucha line, which grew to become number two in the expansive line of Kombucha in first year of sales.
The year also saw the company expand its distribution channels for Ginger brew as well as Virgil’s branded products. Reed’s is now planning to fine tune its production model to improve economics of production as it strives to cut back on costs of operation. Smarter and more focused marketing strategies have been initiated to ensure the company makes 2014 an even greater year.
Reed’s to focus on its Key Areas
Focus now shifts on improving results in Reed’s, Inc. (NYSE:REED)’s key areas of operation. Reed’s beverage product segment continues to enjoy strong growth rates having registered an increase of 18% in gross margin dollars in 2013.
Economies of scale continue to play a pivotal role in the reduction of Reed’s general and administrative costs considering they were down for the year, with a 140 basis point improvement. Sales and marketing costs on the other hand continue to surge as the company tries to shrug of competition to increase its sales.
The increase in sales for the year was as a result of Reed’s, Inc. (NYSE:REED) focusing on additional distributional channels for its Kampuchea product line. Organizational structure continues to stay healthy complimented by excellent brands.
Reed’sWorking Capital Drops
Net losses, pay downs for the company’s long-term debt as well as an increase in inventory levels caused the company’s working capital to plummet by $1 million to lows of 1.35 million. The company has been quick to quash concerns over the decline in its working capital by stating there is enough to meet the company’s needs throughout the year. Reed’s, Inc. (NYSE:REED)’s plans to reduce huge spending on trades, as a way of covering up for the decline in working capital.
