Known for its non-alcoholic Ginger Brews, Reed's Inc. said it is in active discussions with 25 national chains to produce private label products for them.October 6, 2009
Known for its non-alcoholic Ginger Brews, Reed's Inc. said it is in active discussions with 25 national chains to produce private label products for them.
The company recently passed its first Good Manufacturing Practices HACCP audit with a major retailer and is moving forward with private label for two major retailers, according to Chris Reed, founder and CEO of Reed's.
"We expect to start shipping shortly and we estimate that these two initial accounts could represent between $2.5 and $3 million per year in additional business for the company," he said. "Our goal is to double our business in the next 12-18 months using private label as a primary tool."
Gross profits from the private label business will be used to fuel marketing, advertising and promotions of its brands. "Expansion of our core brands is still our number one long-term focus," he added.
Reed's uses fresh ginger, spices and fruits to brew its beverages. The company also owns Virgil's Root Beer, China Cola Reed's Ginger Candies and Reed's Ginger Ice Creams.