Thanks to the thousands of IPO neck-tags that dress Reed's Ginger Brew bottles, fans will have the chance to own a piece of the legendary California beverage company to the tune of four dollars a shar
November 15, 2005 (Press Release) --
El Segundo, Calif. (November 15, 2005) — Reed’s Inc. Founder and CEO Chris Reed is betting on consumers’ tingling love for his Ginger Brew to entice them to put down their drink and invest in the New Age beverage company. Thanks to the thousands of IPO neck-tags that dress bottles hitting grocery shelves this week, Reed’s Ginger Brew fans will have the chance to own a piece of the legendary California beverage company to the tune of four dollars a share.
A simple advertisement on the back page of November’s Utne Reader has already generated far more investment dollars than Reed had expected — including interest from major investors. But the tie-dyed “ginger brew tycoon” has hopes that the adoring consumers he hears from so fervently will be able to dominate ownership of the $8 million dollars being raised in order to put the symbol REEDS squarely on the NASDAQ stock market exchange next year.
In the great tradition of Ben & Jerry’s and Samuel Adams, Reed’s Inc. wants to grow on the shoulders of public support. The nation’s only beverage-maker to brew its soft drinks, best known for its premium all-natural Original Ginger Brews, Virgil’s Root Beer and China Cola, the proceeds will allow Reed’s the additional capacity and distribution to become a truly mainstream brand — far beyond its health store roots.
Reed’s, which uses over a million pounds of fresh ginger annually with craftsmanship found only in micro-breweries — enjoys intense consumer loyalty with revenues exceeding 20 percent a year growth, more than twice the 11 percent annual growth of the New Age beverage category. This fast-growth sector is expected to reach $18 billion by 2008. Reed’s “secret sauce” goes beyond its novel ingredients, but in fact may be its products’ consumer mystique. Word of mouth among pregnant women, chemotherapy patients, seasick travelers, ulcer victims, arthritis sufferers, parents of autistic children and others has become a constant drumbeat since before the phrase “New Age” existed. Stories pour in daily at the L.A.-based brewery’s offices, and account for a significant slice of its customer base, according to Reed, who can rattle off the names of chemotherapy centers serving his product.
With annual sales of over $10 million, Reed’s has achieved what is most difficult to replicate: an authenticity and unfettered drive-outta-my-way consumer appeal that can be taken to the bank. The proceeds from the IPO will allow the company to expand distribution in mainstream grocery channels, expand its popular on-draft root beer and cream soda business to all of their lines, pump-up marketing, and compete fully with deep-pocketed industry competitors -- Cadbury, Hansen’s, Phillip Morris, Pepsi – who rely on brand saturation to build consumer loyalty.
Brookstreet Securities of Santa Monica is the underwriter of the $8 million initial public offering. More information can be found at www.reedsinc.com.
# # #
CONTACT: Josh Kohnstamm or Nicholas Gehrig at 651 228-9141 to arrange for interviews, brewery tours, media kits, samples and images.
A simple advertisement on the back page of November’s Utne Reader has already generated far more investment dollars than Reed had expected — including interest from major investors. But the tie-dyed “ginger brew tycoon” has hopes that the adoring consumers he hears from so fervently will be able to dominate ownership of the $8 million dollars being raised in order to put the symbol REEDS squarely on the NASDAQ stock market exchange next year.
In the great tradition of Ben & Jerry’s and Samuel Adams, Reed’s Inc. wants to grow on the shoulders of public support. The nation’s only beverage-maker to brew its soft drinks, best known for its premium all-natural Original Ginger Brews, Virgil’s Root Beer and China Cola, the proceeds will allow Reed’s the additional capacity and distribution to become a truly mainstream brand — far beyond its health store roots.
Reed’s, which uses over a million pounds of fresh ginger annually with craftsmanship found only in micro-breweries — enjoys intense consumer loyalty with revenues exceeding 20 percent a year growth, more than twice the 11 percent annual growth of the New Age beverage category. This fast-growth sector is expected to reach $18 billion by 2008. Reed’s “secret sauce” goes beyond its novel ingredients, but in fact may be its products’ consumer mystique. Word of mouth among pregnant women, chemotherapy patients, seasick travelers, ulcer victims, arthritis sufferers, parents of autistic children and others has become a constant drumbeat since before the phrase “New Age” existed. Stories pour in daily at the L.A.-based brewery’s offices, and account for a significant slice of its customer base, according to Reed, who can rattle off the names of chemotherapy centers serving his product.
With annual sales of over $10 million, Reed’s has achieved what is most difficult to replicate: an authenticity and unfettered drive-outta-my-way consumer appeal that can be taken to the bank. The proceeds from the IPO will allow the company to expand distribution in mainstream grocery channels, expand its popular on-draft root beer and cream soda business to all of their lines, pump-up marketing, and compete fully with deep-pocketed industry competitors -- Cadbury, Hansen’s, Phillip Morris, Pepsi – who rely on brand saturation to build consumer loyalty.
Brookstreet Securities of Santa Monica is the underwriter of the $8 million initial public offering. More information can be found at www.reedsinc.com.
# # #
CONTACT: Josh Kohnstamm or Nicholas Gehrig at 651 228-9141 to arrange for interviews, brewery tours, media kits, samples and images.
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