Reed's Inc. Case Study

Reed’s products are sold in small shopping markets through specialty gourmet vendors, natural food stores, retail stores, convenience stores, restaurants, and select international markets. Reed’s gained 1% of their revenue through Asia, Canada, and Europe. Looking at this number you can predict that there might be potential to grow overseas especially in markets where tea and herbal drinks are popular. Reed’s Inc. has also benefited from the use of bottling beverages under private labels. The company bottles beverages under the MARTINELLI’s and the Izzie name. Through this type of private label bottling, the company has seen a 5 million dollar increase in revenue from 2012 to 2013 (Flores). Today’s consumers are drinking less and less soda than in previous years. …show more content…
People seem to becoming more health conscious on what they put into their body. The unhealthy comparison of drinking soda and the link to obesity and diabetes help keep optimism for the company to continue to grow. Kombucha is becoming one of the most popular beverages on the market. Today Kombucha boosts the largest segment in the functional beverage category of drinks and foods, which includes fresh juices, yogurt, and coconut water. Kombucha is growing by 30% a year and is expected to be a 500 million dollar industry by the end of 2015 (Erymanthos) Reed’s Kombucha drink has one major competitor in the market which is Millennium Products that distributes GT’s Synergy drinks who owns 75% of the market share but on the other side Reed has sales growing by 50% and up (Erymanthos). Reed has taken advantage of the opportunity to keep climbing in the natural beverage industry by investing 1.5 million dollars in its Los Angeles plant to help triple production speed. It’s said by Reed’s Inc. that this will support sales up to 100 million to 120 million