Skinny Nutritional has posted almost a doubling of net losses for its third quarter, as sales continue to rise for its flavoured water portfolio.

The Pennsylvania-based company said net losses for the three months to the end of September came in at US$2.9m compared to losses of $1.5m in the same period a year earlier. The increase was blamed primarily on increases in marketing, advertising, general and administrative expenses, which totalled $1.9m for the quarter compared to $1.8m a year ago.

Included in the net losses were $2m for non-cash charges related to the conversion of preferred stock to common stock and equity issued for compensation and services.

Net sales, however, leapt by 59% to $1.5m.

"We have focused on upgrading our distribution network," said company president and CEO, Ronald Wilson. "We have recently replaced several distributors on the east coast with Canada Dry affiliates (Canada Dry New York, Canada Dry Delaware Valley, Davis Beverage).

"We have also recently contracted with Hensley Beverage Corp, an Anheuser-Busch distributor, to cover the state of Arizona. We are now looking to enhance our distribution network on the west coast by seeking additional ... partners."

For the first nine months of 2009, net losses totalled $5m compared with $2.5m. Of this amount, $2.6m of the loss were non-cash charges related to the conversion of preferred stock to common stock and equity issued for compensation and services.

Net sales, meanwhile, leapt by 223% to $3.9m. The company has sold 461,125 (12X16oz) cases of Skinny Water in the first nine months, a rise of 240% year-on-year.

For Skinny Nutritional's Q2 performance, click here.