Reed's has posted an increase in losses for the first six months of 2007, despite improving sales in the period.

The US-based soft drinks company said yesterday (20 August) that operational losses for the six-month period rose to US$1.1m from losses of $758,481 in the corresponding period a year earlier. While net losses also rose to $1.1m, from $956,835, sales for the company were up by 26% to $6.5m from $5.1m.

Despite the losses, the company preferred to focus on the rise in sales as "more accurately reflect(ing) the strength of our business and the future growth rate of the company".

Company founder and CEO Chris Reed said: "We are very pleased with our first half 2007 results as we achieved year-over-year sales growth in excess of 25%, further expanded our US distribution network and continued to build awareness of the Reed's brand.

"Our robust sales growth is indicative of the strong demand and continued acceptance of Reed's portfolio of products within the mainstream marketplace.

""As we move into the second half of 2007, we continue to experience strong demand for our core product lines which is reflected in our third quarter guidance of 20% to 40% year-over-year sales growth."

Looking to the second half of this year, the company said it will continue to invest in its infrastructure with a view to positioning Reed's for long-term growth.

"Core to our growth strategy is expanding our distribution network and, as such, we will continue to add key sales personnel from major beverage companies in order to service new accounts and increase our sales and marketing efforts," Reed continued. "While we expect this to result in increased sales force expense in the second half of 2007, we anticipate adding an additional 10 to 20 key markets by year end."

"We believe that we are well positioned to increase our market share within the high-growth 'New Age' beverage category."

Reed's produces a range of ginger-based soft drinks, while also owning Virgil's Root Beer and China Cola.