just on Call - US: Reed's looks to "reel in some big fish"
Reed's said it is hoping to grow its private label brands
Reed's said it is hoping to grow its private label sales further next year and secure listings with up to eight major retailers.
Speaking on the firm's earnings conference call yesterday (10 November), Chris Reed, founder, chairman and CEO of Reed's, told analysts that it is in negotiations with the "top ten retailers in the world for grocery".
"The third quarter is definitely an exciting time for us, mostly due to private label sales," Reed told analysts. "It's an exciting point in time, and we are very focused on our key national accounts. In our private label business, we already have on board four major private label customers at this time, and we have two more coming on board. By this time next year we want somewhere between eight and ten large private label customers. We certainly want to reel in some big fish next year."
Reed added that private label has become a new source of revenue for the company, which the firm attributed the narrowing of its third-quarter net losses to.
"What we really see happening with our company, by this time next year, with all the new revenue and gross profit from private label, we will have a significant budget without having to sell stock, for the very first time," Reed said. "We feel we are in our infancy... but the third quarter next year will be extremely strong for us."
For the three months to the end of September, the soft drinks maker's net losses narrowed to US$398,000 from $402,000 a year earlier.
EBITDA doubled to $32,000, while net sales increased by 35% to $5.4m.
Reed's shares rose 1.42% to $2.13 at 11.11am ET today.
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