Reed’s, Inc. (NYSE American:REED), one of the nation’s leading
portfolios of handcrafted, all-natural beverages announced that it
has secured multi-year contracts with Owen-Illinois as its
exclusive glass supplier and R.C. Moore as its primary logistics
partner for North America. The Company also announced the
engagement of Gordon Brothers to lead the Company’s process of
evaluating and maximizing the value of its operational and non-core
assets.
“It was clear when I joined Reed’s that it was
critical to streamline the business in order to focus on our core
Reed’s and Virgil’s brands to drive growth at higher margins.
After a thorough review of the business, I am pleased to announce
the securing of these three world-class partnerships. We
believe their combined efforts will support driving significant
improvements in the Company’s profitability, cash flows and net
margins in 2018 and beyond. The improvements from lower glass
and logistics costs are expected to begin in early 2018. As
part of the Company’s new strategic direction to focus on moving to
an ‘asset-light’ business model, we are partnering with an
experienced restructuring firm in Gordon Brothers to lead the
process of unlocking value tied to these assets,” commented Val
Stalowir, Chief Executive Officer of Reed’s, Inc.
Stefan Freeman, Chief Operating Officer of Reed’s
Inc. added, “Working exclusively with Owens-Illinois is going to
simplify our supply chain and drive significant cost savings in the
largest component of our raw material costs, deliver improved
package quality and lower our working capital commitment to glass
inventory. After glass, raw materials handling and finished goods
delivery costs account for a significant portion of the Company’s
annual cash outlay. By partnering with R.C. Moore and
utilizing their supply chain management expertise, significant
transportation assets and extensive experience in the beverage
industry, I am confident that we will be able to realize
significant operational efficiencies and logistics cost
savings.”
Maury Herod, Director Americas Business Development
of Owens-Illinois stated, “Owens-Illinois is pleased to
partner with Reed’s as their exclusive glass container supplier. We
are excited to help them expand the reach of their all-natural
craft beverages to more and more consumers in our sustainable,
high-quality, brand-building glass bottles. We also look
forward to working closely with and supporting the Reed’s team in
their efforts to improve the Reed’s and Virgil’s brands’ value and
package differentiation in the marketplace through our expertise in
embossing and proprietary package design.”
About Owens Illinois, Inc.
Owens-Illinois, Inc. (NYSE:OI) is the world's largest glass
container manufacturer and preferred partner for many of the
world's leading food and beverage brands. The Company had revenues
of $6.7 billion in 2016 and employs more than 27,000 people at 79
plants in 23 countries. With global headquarters in Perrysburg,
Ohio, O-I delivers safe, sustainable, pure, iconic, brand-building
glass packaging to a growing global marketplace. For more
information, visit o-i.com.
About R.C. Moore, Inc.R.C. Moore,
Inc., based in Scarborough, Maine has been in operation for over 60
years, and is a Turn Key Logistics company offering award winning
Logistics Services from seven locations. R.C. Moore has well
established distribution relationships with several industry
leading beverage companies from the Fortune 500 and boasts
overnight delivery access to one third of the US population.
Offering transportation and brokerage services to multinational
conglomerates and small family-owned businesses alike, we, the
second generation of Moores, value our employees and our customer
relationships. From the dispatch office to our drivers and
maintenance staff, service is our culture.
About Gordon BrothersSince 1903,
Gordon Brothers (www.gordonbrothers.com) has helped lenders,
operating executives, advisors, and investors move forward through
change. The firm brings a powerful combination of expertise and
capital to clients, developing customized solutions on an
integrated or standalone basis across four service areas:
valuations, dispositions, operations, and investments. Whether to
fuel growth or facilitate strategic consolidation, Gordon Brothers
partners with companies in the retail, commercial, industrial and
consumer products sectors to put assets to their highest and best
use. Gordon Brothers conducts more than $70 billion worth of
dispositions and appraisals annually. Gordon Brothers is
headquartered in Boston, with 25 offices across four continents.
For further information, please contact
reeds@gordonbrothers.com
About Reed’s, Inc.Established in
1989, Reed’s has sold over 500 million bottles of its category
leading all-natural, handcrafted beverages. Reed’s is America’s #1
selling Ginger Beer brand and has been the leader and innovator in
the ginger beer category for decades. Virgil’s is America’s #1
selling independent, all-natural craft soda brand. The Reed’s Inc.
portfolio is sold in over 20,000 retail doors across the natural,
specialty, grocery, drug, club and mass channels nationwide.
Reed’s Ginger Beers are unique to the category because of the
proprietary process of hand brewing its award-winning products
using fresh organic ginger combined with natural spices and fruit
juices. Reed’s Ginger Beers come in three levels of increasing
ginger intensity that deliver a delicious and powerful ginger bite
and burn that can only come from fresh ginger root. The Company
uses this same handcrafted approach and dedication to the highest
quality ingredients in its award-winning Virgil’s line of great
tasting, bold flavored craft sodas.
For more information about Reed’s, please
visit the Company’s website at: http://www.reedsinc.com or call
800-99-REEDS.
Follow Reed’s on Twitter at
http://twitter.com/reedsgingerbrew Reed’s Facebook
Fan Page at https://www.facebook.com/reedsgingerbrew
SAFE HARBOR STATEMENT Some
portions of this press release, particularly those describing
Reed’s goals and strategies, contain “forward-looking statements.”
These forward-looking statements can generally be identified as
such because the context of the statement will include words, such
as “expects,” “should,” “believes,” “anticipates” or words of
similar import. Similarly, statements that describe future plans,
objectives or goals are also forward-looking statements. While
Reed’s is working to achieve those goals and strategies, actual
results could differ materially from those projected in the
forward-looking statements as a result of a number of risks and
uncertainties. These risks and uncertainties include difficulty in
marketing its products and services, maintaining and protecting
brand recognition, the need for significant capital, dependence on
third party distributors, dependence on third party brewers,
increasing costs of fuel and freight, protection of intellectual
property, competition and other factors, any of which could have an
adverse effect on the business plans of Reed’s, its reputation in
the industry or its expected financial return from operations and
results of operations. In light of significant risks and
uncertainties inherent in forward-looking statements included
herein, the inclusion of such statements should not be regarded as
a representation by Reed’s that they will achieve such
forward-looking statements. For further details and a discussion of
these and other risks and uncertainties, please see our most recent
reports on Form 10-K, Form 10-Q and Form S-1, as filed with the
Securities and Exchange Commission, as they may be amended from
time to time. Reed’s undertakes no obligation to publicly update
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
INVESTOR CONTACT: Reed's, Inc.
Investor Relations (310) 217-9400 Ext 6Email: ir@reedsinc.com
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