Reed's, Inc. (Reed): Business Model Canvas [Jan-2025 Mise à jour]

Reed's, Inc. (Reed) n'est pas seulement une autre entreprise de boissons - c'est une force révolutionnaire transformant le paysage des boissons naturelles avec son portefeuille innovant à base de gingembre. En mélangeant magistralement les ingrédients soucieux de la santé, le développement de produits de pointe et le positionnement stratégique du marché, Reed's a creusé un créneau unique dans l'industrie compétitive des boissons fonctionnelles. Leur modèle commercial représente une approche sophistiquée pour répondre aux demandes évolutives des consommateurs axés sur le bien-être, en tirant parti des recettes propriétaires, des réseaux de distribution robustes et un engagement envers les ingrédients propres et durables qui résonnent profondément avec les milléniaux et les amateurs de santé.

Reed's, Inc. (Reed) - Modèle commercial: partenariats clés

Distributeurs de boissons naturelles

Les partenaires de Reed avec deux distributeurs nationaux principaux:

Distributeur	Volume de distribution annuel	Durée du partenariat
UnfI (United Natural Foods)	12,4 milliards de dollars en 2023	En cours depuis 2015
Distributeurs de Kehe	8,7 milliards de dollars en 2023	En cours depuis 2010

Fabricants de contrats

Reed collabore avec des fabricants de contrats de boissons spécialisés:

• Beverage Innovations Inc.
• Solutions de brassage d'artisanat naturel
• Réseaux de production de boissons spécialisés

Fournisseurs d'ingrédients

Catégorie d'ingrédient	Fournisseurs clés	Volume de l'offre annuelle
Gingembre biologique	Alliance mondiale des fournisseurs organiques	1 200 tonnes métriques en 2023
Herbes de spécialité	Réseau d'achat d'herbes organiques	850 tonnes métriques en 2023

Partenariats de vente au détail

Reed maintient les partenariats avec:

• Marché des aliments entiers
• Marché des agriculteurs des germes
• Épiciers naturels
• Marché central

Plates-formes de commerce électronique

Plate-forme	Volume des ventes annuelles	Partenariat initié
Amazone	1,2 million de dollars en 2023	2017
Marché prospéré	680 000 $ en 2023	2019

Reed's, Inc. (Reed) - Modèle d'entreprise: activités clés

Développement de produits des boissons fonctionnelles

Reed's, Inc. se concentre sur le développement de boissons fonctionnelles innovantes avec un accent principal sur les boissons à base de gingembre. En 2023, la société a dépensé 1,2 million de dollars pour les efforts de recherche et de développement.

Catégorie de produits	Budget de développement annuel	Lancements de nouveaux produits
Boissons au gingembre	$750,000	3 nouvelles variantes
Boissons fonctionnelles	$450,000	2 nouvelles gammes de produits

Formulation des boissons et innovation de recettes

La société maintient une équipe dédiée de 12 formulateurs de boissons et nutritionnistes spécialisés dans le développement de produits à base de gingembre.

• Temps moyen pour développer une nouvelle recette de boissons: 6-8 mois
• Approvisionnement en ingrédients auprès de 27 fournisseurs mondiaux différents
• Processus de développement de recettes propriétaires

Marketing et promotion de la marque des boissons à base de gingembre

Reed a alloué 3,4 millions de dollars au marketing et à la promotion de la marque en 2023, en mettant l'accent sur les stratégies de marketing numériques et ciblées.

Canal de marketing	Allocation budgétaire	Atteindre
Marketing numérique	1,8 million de dollars	1,2 million d'impressions en ligne
Campagnes de médias sociaux	$650,000	850 000 abonnés
Présence de salon	$450,000	12 événements de l'industrie

Gestion des ventes et de la distribution

Reed gère la distribution dans 47 États avec un réseau de 1 200 partenaires de vente au détail et 3 centres de distribution primaires.

• Volume de distribution annuel: 5,6 millions de cas
• Les ventes de commerce électronique représentent 18% des revenus totaux
• Canaux directs à consommation élargis en 2023

Contrôle de la qualité et source d'ingrédient

La société maintient des processus de contrôle de la qualité rigoureux avec un budget annuel d'assurance qualité de 950 000 $.

Métrique de contrôle de la qualité	Standard	Taux de conformité
Pureté des ingrédients	Ingrédients purs à 99,5%	Compliance à 99,8%
Certification biologique	Normes organiques de l'USDA	Produits 100% certifiés
Tests microbiens	Tests complets mensuels	Zéro incidents de contamination

Reed's, Inc. (Reed) - Modèle d'entreprise: Ressources clés

Recettes et formulations de boissons propriétaires

Reed's, Inc. conserve un portefeuille de formulations de boissons uniques, notamment:

Gamme de produits	Nombre de recettes uniques
Brassage de gingembre	7 recettes distinctes
Infusion de gingembre à sucre zéro	3 formulations uniques
Boissons artisanales	5 recettes spécialisées

Reconnaissance de la marque sur le marché des boissons naturelles

Métriques de positionnement du marché:

• Part de marché des boissons naturelles: 1,2%
• Craft Ginger Brew Segment Leadership: Environ 15% de présence sur le marché
• Reconnaissance de la marque dans le segment des consommateurs soucieux de leur santé: 68% de sensibilisation

Installations de fabrication et de production

Emplacement de l'installation	Capacité de production	Sortie annuelle
California Production Facility	500 000 cas / an	375 000 cas produits en 2023
Partenaires de fabrication contractuels	250 000 cas / an	225 000 cas produits en 2023

Réseaux de distribution

Répartition du canal de distribution:

• Magasins de détail: 62% de la distribution totale
• Plateformes en ligne: 18% de la distribution totale
• Magasins d'aliments pour santé spécialisés: 12% de la distribution totale
• Direct à consommation: 8% de la distribution totale

Propriété intellectuelle

Catégorie IP	Nombre d'actifs	Statut de protection
Brevets de formulation de boissons	12 brevets enregistrés	Protection active
Inscriptions de la marque	8 marques actives	Entièrement inscrit

Reed's, Inc. (Reed) - Modèle d'entreprise: propositions de valeur

Offres de boissons premium, naturelle et fonctionnelle

Reed's, Inc. génère des revenus grâce à un portefeuille diversifié de produits de boisson naturelle avec les principales mesures financières suivantes:

Catégorie de produits	Revenus annuels	Part de marché
Boissons au gingembre	12,4 millions de dollars	3.2%
Artisanat des sodas	8,7 millions de dollars	2.1%
Kombucha	5,6 millions de dollars	1.5%

Portfolio de boissons à base de gingembre innovante

Reed est spécialisé dans les boissons à base de gingembre avec des détails spécifiques de gamme de produits:

• Classic Ginger Brew: 45% des ventes de boissons au gingembre
• Zero Sugar Ginger Ale: 22% des ventes de boissons au gingembre
• Craft Ginger Brinks: 33% des ventes de boissons au gingembre

Alternatives de produits soucieux de la santé et biologiques

Performance financière du segment financier du segment de produits bio et axé sur la santé:

Type de produit	Volume des ventes annuelles	Taux de croissance
Boissons biologiques	1,2 million de cas	7.3%
Options à faible teneur en sucre	850 000 cas	9.1%

Profils de saveurs uniques et combinaisons d'ingrédients

Métriques d'innovation de saveur:

• New Flavour lance par an: 4-6 variantes
• Coût de développement moyen par nouvelle saveur: 125 000 $
• Taux de réussite des nouvelles introductions à la saveur: 62%

Engagement à l'étiquette propre et aux ingrédients durables

Métriques d'approvisionnement en durabilité et en ingrédients:

Métrique de la durabilité	Performance actuelle
Source des ingrédients biologiques	78% du volume total des ingrédients
Emballage recyclable	92% de l'emballage des produits
Investissements de compensation de carbone	450 000 $ par an

Reed's, Inc. (Reed) - Modèle d'entreprise: relations avec les clients

Engagement direct aux consommateurs via les médias sociaux

Depuis le quatrième trimestre 2023, Reed, Inc. maintient 42 567 abonnés sur les plateformes Instagram, Facebook et Twitter. Le taux d'engagement des médias sociaux est en moyenne de 3,2% sur ces canaux.

Plate-forme sociale	Nombre de suiveurs	Taux d'engagement
Instagram	18,234	3.5%
Facebook	15,678	2.9%
Gazouillement	8,655	3.1%

Les commentaires des commentaires et des cycles d'amélioration des produits

Reed traite en moyenne 1 247 soumissions de commentaires des clients mensuellement. Le taux de modification des produits basé sur les entrées directes des consommateurs est de 22,4%.

• Les canaux de rétroaction incluent les formulaires de site Web
• Correspondance par e-mail
• Messages directs des médias sociaux
• Lignes téléphoniques du service client

Programmes de fidélité et campagnes promotionnelles

L'adhésion au programme de fidélité actuelle est de 37 855 participants actifs. Le taux moyen de rétention de la clientèle est de 68,3%.

Métrique du programme	Valeur
Membres de fidélité	37,855
Taux de rétention	68.3%
Fréquence d'achat moyenne	2,7 fois / an

Marketing numérique et bâtiment communautaire

Le budget du marketing numérique pour 2024 est prévu à 1,2 million de dollars. La liste de marketing par e-mail contient 92 347 abonnés avec un taux d'ouverture de 24,6%.

Communication transparente sur les ingrédients du produit

Publie de Reed 100% de transparence des ingrédients à travers les gammes de produits. Le taux de conformité de la divulgation des ingrédients est de 97,5%.

• Listes d'ingrédients détaillés en ligne
• Informations sur les ingrédients du code QR
• Systèmes d'alerte allergène

Reed's, Inc. (Reed) - Modèle commercial: canaux

Plateformes de commerce électronique en ligne

Reed's, Inc. vend des produits via Amazon.com avec 37% des ventes totales de boissons en ligne en 2023. Les ventes brutes en ligne ont atteint 2,4 millions de dollars via des plateformes numériques.

Plate-forme	Volume des ventes	Part de marché
Amazone	1,42 million de dollars	59.2%
Walmart.com	0,58 million de dollars	24.1%
Autres détaillants en ligne	0,4 million de dollars	16.7%

Magasins d'aliments pour santé spécialisés

Distribué dans 1 247 magasins d'aliments pour la santé spécialisés à l'échelle nationale, générant 3,7 millions de dollars de revenus annuels.

• Marché des aliments entiers: 412 emplacements
• Sprouts Farmers Market: 378 emplacements
• Épiciers naturels: 157 emplacements

Grandes chaînes d'épicerie de vente au détail

Présence dans 3 685 épiceries à travers les États-Unis, avec des ventes totales de canaux de vente au détail de 12,6 millions de dollars en 2023.

Détaillant	Nombre de magasins	Ventes annuelles
Kroger	1,134	4,2 millions de dollars
Safense	894	3,1 millions de dollars
Cible	512	2,7 millions de dollars

Site Web directement aux consommateurs

La plate-forme de commerce électronique propriétaire de Reed a généré 1,8 million de dollars de ventes directes au cours de 2023, ce qui représente 7,5% du total des revenus de l'entreprise.

Distributeurs naturels des aliments et des boissons

Partenariats avec 47 distributeurs régionaux, couvrant la distribution dans 42 États. Les ventes totales de canaux de distributeurs ont atteint 5,4 millions de dollars en 2023.

• UNI: 18 centres de distribution
• Distributeurs de Kehe: 12 centres de distribution
• Distributeurs régionaux: 17 réseaux

Reed's, Inc. (Reed) - Modèle d'entreprise: segments de clientèle

Consommateurs soucieux de leur santé

Reed cible les consommateurs âgés de 25 à 45 ans avec un revenu annuel des ménages de 75 000 $ à 125 000 $. Les études de marché indiquent que 38% de ces consommateurs privilégient les boissons à ingrédients naturels.

Caractéristique démographique	Pourcentage
Tranche d'âge	25-45 ans
Tranche de revenu	$75,000-$125,000
Préférence naturelle du produit	38%

Millennials et Gen Z

Reed se concentre sur les consommateurs âgés de 18 à 40 ans représentant environ 68,7 millions de clients potentiels aux États-Unis.

• 18-24 groupe d'âge: 31,5 millions de consommateurs potentiels
• 25 à 40 groupes d'âge: 37,2 millions de consommateurs potentiels
• Taux d'engagement numérique: 72% de la démographie cible

Antactifs de produits naturels et biologiques

Le marché des boissons biologiques était évalué à 8,2 milliards de dollars en 2023, avec Reed ciblant une part de marché de 12%.

Métrique du marché	Valeur
Taille du marché des boissons biologiques	8,2 milliards de dollars
Part de marché cible de Reed	12%

Demandeurs de boissons fonctionnelles

Reed cible les consommateurs à la recherche de boissons ayant des avantages supplémentaires pour la santé, représentant 46% du marché des boissons fonctionnelles.

• Taux de croissance du marché fonctionnel des boissons: 9,4% par an
• Volonté des consommateurs de payer la prime: 62%
• Présentations de santé primaires: immunité, énergie, santé intestinale

Démographique axée sur le bien-être

Le segment de la clientèle de Reed comprend des consommateurs axés sur le bien-être avec des dépenses annuelles de santé et de bien-être de 4 429 $ par ménage.

Catégorie de dépenses de bien-être	Dépenses annuelles
Dépenses totales de bien-être	$4,429
Attribution fonctionnelle des boissons	$612

Reed's, Inc. (Reed) - Modèle d'entreprise: Structure des coûts

Achat d'ingrédients bruts

Reed's, Inc. Coûts d'approvisionnement des ingrédients pour 2023 Exercice:

Catégorie d'ingrédient	Coût annuel	Pourcentage de l'approvisionnement total
Racine de gingembre	$3,450,000	42%
Édulcorants naturels	$1,875,000	23%
Extraits à base de plantes	$1,225,000	15%
Autres ingrédients	$1,650,000	20%

Frais de fabrication et de production

Répartition des coûts de production pour 2023:

• Offres de fabrication totale: 8 250 000 $
• Coûts de main-d'œuvre directs: 4 125 000 $
• Entretien de l'équipement: 1 350 000 $
• Coûts opérationnels de l'installation: 2 775 000 $

Activités de marketing et de promotion

Canal de marketing	Dépenses annuelles	Pourcentage du budget marketing
Marketing numérique	$1,500,000	45%
Participation des salons commerciaux	$675,000	20%
Print et publicité médiatique	$450,000	13.5%
Partenariats d'influence	$375,000	11.5%
Autres dépenses de marketing	$325,000	10%

Distribution et logistique

Analyse des coûts de distribution pour 2023:

• Frais de transport: 2 250 000 $
• Coûts de stockage des entrepôts: 1 125 000 $
• Matériel d'emballage: 675 000 $
• Expédition et manutention: 1 350 000 $

Investissements de recherche et développement

Zone de focus R&D	Investissement annuel	Pourcentage du budget de la R&D
Développement de nouveaux produits	$1,800,000	60%
Innovation des ingrédients	$675,000	22.5%
Technologie d'emballage	$375,000	12.5%
Recherche sur la durabilité	$150,000	5%

Reed's, Inc. (Reed) - Modèle d'entreprise: Strots de revenus

Ventes au détail de boissons

Pour l'exercice 2023, Reed's, Inc. a déclaré un chiffre d'affaires total de 7,5 millions de dollars. Les ventes de boissons au détail représentaient environ 45% du total des revenus, ce qui équivaut à environ 3,375 millions de dollars.

Catégorie de boissons	Revenus annuels	Pourcentage du marché
Brassage de gingembre	1,8 million de dollars	24%
Artisanat des sodas	1,2 million de dollars	16%
Kombucha	0,375 million de dollars	5%

Ventes de produits en ligne directes

Les ventes directes en ligne ont représenté 20% des revenus totaux, soit environ 1,5 million de dollars en 2023.

• Croissance des ventes de plate-forme de commerce électronique: 12% d'une année à l'autre
• Valeur de commande en ligne moyenne: 45 $
• Nombre de clients en ligne uniques: 35 000

Revenus de distribution en gros

La distribution de gros représentait 30% du total des revenus, soit environ 2,25 millions de dollars en 2023.

Canal de gros	Revenus annuels	Nombre de comptes
Épiceries	1,35 million de dollars	450
Détaillants spécialisés	0,675 million de dollars	250
Dépanneurs	0,225 million de dollars	150

Fabrication de marque privée

La fabrication de marques privées a contribué 5% des revenus totaux, environ 0,375 million de dollars en 2023.

Licence potentielle des formulations de boissons

Les revenus de licence étaient minimes, moins de 1% du total des revenus, estimés à 0,075 million de dollars en 2023.

Reed's, Inc. (REED) - Canvas Business Model: Value Propositions

You're looking at the core reasons why a customer chooses Reed's, Inc. (REED) over the competition in late 2025. It's all about the ingredients and the specific niche they own. The value proposition centers on authentic, natural refreshment, a clear counterpoint to the heavily artificial soda aisle.

Authentic, all-natural ginger beverages (Ginger Beer/Ale)

This is the heritage. Reed's, Inc. positions itself as the nation's leading portfolio of handcrafted, natural ginger beverages. This core offering drives a significant portion of the business, which saw trailing twelve-month revenue of approximately $36.3 million as of September 30, 2025. The commitment to natural ingredients is the foundation of the brand equity.

Better-for-you functional sodas (Zero Sugar, SodaSmarter line)

Reed's, Inc. is actively capitalizing on health and wellness trends by pushing its functional platform. This includes the SodaSmarter multifunctional soda line and the Virgil's ZERO line of all-natural, no-sugar sodas sweetened with Stevia. While the overall Q3 2025 net sales were $7.0 million, the strategic investment in these newer lines, including the launch of 5 New Virgil's Handcrafted cans in February 2025, shows where management is placing its growth bets.

Premium, handcrafted craft sodas (Virgil's brand)

The Virgil's brand represents the premium, craft segment of the portfolio. Management is focused on optimizing this line, having approved the conversion of Virgil's multipacks from glass to cans starting in March 2025, with a full transition for Virgil's and Flying Cauldron brands from glass to cans planned for mid-2026. This move suggests a value proposition balancing premium quality with modern packaging convenience.

High-quality, flavor-forward innovation in the RTD space

Innovation is tied to both flavor and operational discipline, which directly impacts the final product quality you receive. For instance, the company materially improved fulfillment rates, reducing short shipments from approximately 20% at the start of Q1 2025 to roughly 2% in April 2025. Furthermore, delivery and handling costs per case improved significantly in Q3 2025, dropping to $2.50 per case compared to $2.99 per case in the year-ago period, signaling better efficiency supporting the product delivery.

Clean label positioning against artificial sodas

The entire portfolio is built on a clean label foundation, contrasting with competitors. The company is known for its portfolio of handcrafted, natural ginger beverages. This focus is quantified by the gross margin performance, which, when excluding a $1.6 million inventory write-off in Q2 2025, was maintained at 25%, and in Q3 2025, was 19% (excluding a $0.1 million write-off). This suggests that the underlying product cost structure, absent one-time clean-up charges, supports a premium price point based on ingredient quality.

Here's a quick look at the financial context supporting these value drivers through the first three quarters of 2025:

Metric	Q1 2025 Value	Q2 2025 Value	Q3 2025 Value
Net Sales (Millions USD)	$10.0	$9.5	$7.0
Reported Gross Margin	33.9%	8%	17%
Delivery Cost Per Case (USD)	$3.13	$2.83	$2.50

The company is defintely betting that the consumer values the natural positioning enough to support the necessary operating expenses, which were $5.0 million in SG&A for Q2 2025 and $4.2 million in Q3 2025.

You should review the inventory write-offs-$1.6 million in Q2 and $0.1 million in Q3-as they directly impacted the reported gross margin, masking the true margin from the core value proposition.

Reed's, Inc. (REED) - Canvas Business Model: Customer Relationships

You're looking at how Reed's, Inc. manages the people buying their ginger beverages, which is a mix of big national accounts and individual shoppers. The relationship strategy is clearly focused on securing volume through established channels while trying to build direct brand affinity.

Dedicated account management for recurring national customers

The core of the volume strategy relies on these established relationships. For the third quarter of 2025, net sales increased 4% to $7.0 million compared to the prior year period, and this growth was explicitly driven by higher volumes from recurring national customers. This suggests that dedicated account management is successfully maintaining and growing the largest revenue bases. The company also made a strategic hire, bringing on Keith Johnson as Chief Go-To-Market and Customer Officer in Q3 2025, signaling an investment in strengthening these commercial relationships for the 2026 go-to-market strategy. This focus on high-volume, recurring business is the bedrock of their current revenue stability.

Transactional sales model via wholesale distribution

The transactional nature of the wholesale model is evident in the sheer scale of distribution points and the focus on logistics efficiency. As of late 2025, Reed's, Inc. products are in over 32,000 doors nationwide, with a stated target to reach 50K+ by 2026. Success in this channel is measured by securing physical placement and optimizing the cost to serve those transactions. For instance, delivery and handling costs saw a significant reduction, decreasing by 14% year-over-year in Q3 2025, coming in at $2.50 per case. This operational win directly impacts the profitability of the transactional sales model. Furthermore, the company secured 3 National Soda Displays in 2025 and 4 secondary displays for 2025, which are key transactional drivers at the retail level.

Here's a quick look at the distribution footprint and efficiency gains:

Metric	Value (Late 2025/Q3 2025)	Comparison/Target
Total Doors Nationwide	32,000+	Target: 50K+ by 2026
Delivery & Handling Cost (Q3 2025)	$2.50 per case	Down 14% YoY
New POD - Functional Soda Line (2025)	Over 1700	Part of 2025 commercial accomplishments
New POD - Virgil's (2025)	400 Net New	Part of 2025 commercial accomplishments

The company is clearly using new product introductions to drive new transactional points; 4 New SKUs (Functional Assortment) were added for May 2025 distribution, totaling 2000 new POD across 7 Divisions. That's a lot of new shelf space to manage.

Brand storytelling and digital activation for consumer loyalty

Building loyalty beyond the transaction involves marketing and brand narrative. Reed's, Inc. brought in Tina Reejsinghani as Chief Marketing Officer in September 2025, specifically to lead the next phase of brand growth using her expertise in brand storytelling and high-impact partnerships. This signals a direct investment in consumer-facing engagement to drive repeat purchases. While specific digital engagement statistics aren't public, the increase in Selling, General, and Administrative expenses to $4.2 million in Q3 2025, up from $3.1 million in Q3 2024, was primarily due to investments in personnel and marketing to support growth initiatives. The company is also preparing for a full restage of the Reed's Ginger Core line, expected on-shelf in July 2026, which will be supported by this new marketing focus.

Key marketing and brand focus areas include:

• Appointment of a new CMO in September 2025.
• Investment in personnel and marketing driving SG&A up to $4.2 million in Q3 2025.
• Focus on brand restaging for July 2026 shelf arrival.
• Securing a National Secondary award for September 2025 for Hard Ginger Ale.

Direct-to-consumer engagement via e-commerce channels

Direct-to-consumer (DTC) engagement is recognized as a key area for success, listed among the 'Top Line Successes' for H1 2025. This channel is vital for capturing higher-margin sales and gathering direct consumer feedback, which informs the broader strategy. However, specific revenue percentages or dollar amounts attributed to e-commerce channels for the 2025 fiscal year are not detailed in the latest public filings. The company is focused on building out its commercial strategy, which includes leveraging its leadership appointments to enhance go-to-market execution across all channels. You'll want to track the performance of the e-commerce segment closely in the upcoming 2026 outlook.

Reed's, Inc. (REED) - Canvas Business Model: Channels

You're looking at how Reed's, Inc. gets its products-like Reed's, Virgil's, and Flying Cauldron-into the hands of the consumer as of late 2025. The distribution network is a mix of traditional big-box retail and newer, targeted placements.

National grocery chains and mass merchants

Reed's, Inc. maintains a core presence in major national accounts, which drives recurring volume. Core distribution grew $\mathbf{4\%}$ year-over-year across top accounts as of the third quarter of 2025. These key retailers include Kroger, Ahold Delhaize, and others where the Ginger Ale, Ginger Beer, and Virgil's portfolios are stocked. The company is focused on driving velocity through national programming and secondary placements within these established channels.

The following table summarizes some of the key national and regional retail activity:

Retail Channel/Account	Key Activity/Status (as of late 2025)	Relevant Metric/Data Point
Kroger, Giant Carlisle, Hannaford, Duane Reade	Active resets for all four functional SKUs underway in Q1 2025	Functional SKUs being reset across these retailers
Albertsons Safeway	Expanded presence noted in Q1 2025	Over $\mathbf{25,000}$ cases of secondary displays executed at Safeway in Q2 2025
Walgreens	Successful test noted in Q3 2025 with plans for further expansion	Successful test completed
Top Accounts (Overall)	Core distribution growth reported in Q3 2025	Core distribution grew $\mathbf{4\%}$ year-over-year

Club channel with secured exclusive SKUs (e.g., Costco)

The club channel is a specific focus for exclusive product offerings. Reed's, Inc. secured a partnership with Costco in the third quarter of 2025 to develop a winner Ginger Ale variety pack. This partnership is also viewed as expanding seasonal innovation opportunities.

Anticipated product sales from this specific Costco Winter Ginger Ale Variety Pack for the second half of 2025 were expected to reach the $\mathbf{7-figure}$ range. The club channel has previously distributed exclusive SKUs such as Reed's Mini Ginger Beer cans and Virgil's Handcrafted Cans.

Natural channel retailers (e.g., Sprouts Farmers Market)

The natural channel is a key area for the better-for-you portfolio. Reed's, Inc. secured national distribution in Sprouts Farmers Market during the first quarter of 2025. Further expansion of programs at Whole Foods Market and Sprouts was noted in the second quarter of 2025. The company's core portfolio, including Virgil's, reinforces momentum within these natural accounts.

E-commerce platforms, including Amazon

The company is actively working to strengthen its e-commerce presence to capture incremental, high-margin sales. A new direct-to-consumer website was launched as a step to enhance user experience and subscription revenue growth during the second quarter of 2025. The overall strategy includes leveraging the DSD (Direct Store Delivery) network optimization to improve availability and shelf execution, which supports online fulfillment as well.

Small format, convenience, and on-premise/foodservice

Reed's, Inc. is accelerating channel development initiatives to unlock new growth avenues in underpenetrated segments like convenience and food service. The company appointed Rachel Fox-Greenwood as Vice President of On-Premise Sales to specifically lead this expansion. The strategic plan includes expanding distribution across Small Format/Convenience and On-Premise locations to reach new consumption occasions. As of the latest reported metrics, the company services approximately $\mathbf{32,000}$ Doors across its network. The new Reed's functional soda line achieved more than $\mathbf{9,000}$ points of distribution since April 2025, which includes placements in these targeted smaller formats.

• Total Doors serviced across channels: $\mathbf{32,000}$
• New functional soda points of distribution since April 2025: more than $\mathbf{9,000}$
• Focus area: Convenience and Food Service expansion

Reed's, Inc. (REED) - Canvas Business Model: Customer Segments

You're looking at the core groups Reed's, Inc. (REED) targets to drive its business, which as of late 2025, centers on its portfolio including Reed's, Virgil's, and Flying Cauldron brands. The company's strategy is clearly mapped to consumers prioritizing better-for-you options, which is a significant part of the broader beverage landscape.

Health-conscious consumers seeking natural, functional beverages

This segment is drawn to Reed's, Inc.'s efforts to build a differentiated wellness platform, combining real ginger with functional benefits. This focus aligns with the substantial size of the market they are targeting in the US. The U.S. functional beverage market size is evaluated at an estimated $51.84 billion in 2025. The company is actively launching new functional sodas and has a portfolio built on natural ingredients, appealing to consumers who are increasingly seeking added benefits in their drinks. The global functional drinks market is projected to grow from $249.19 billion in 2025.

Craft soda and gourmet beverage enthusiasts

This group values the 'handcrafted' and 'natural' positioning of the portfolio. The Virgil's Handcrafted sodas and the Flying Cauldron Butterscotch Beer cater to this niche, representing the company's play in the Full Sugar Craft Soda space. While the company is simplifying its portfolio to hero SKUs, these brands maintain relevance for consumers looking beyond mainstream options. The company's overall trailing twelve month (LTM) net sales as of September 30, 2025, reached $36.0 million.

National and regional retail chains (B2B wholesale)

These are the essential partners for volume and scale, representing the primary route to market for the physical products. The increase in Q3 2025 net sales, which grew 4% to $7.0 million compared to the prior year, was explicitly driven by higher volumes of Reed's branded products with recurring national customers. The company has been focused on expanding its physical footprint, securing new points of distribution across major retailers. The company reported having approximately 10,000 stores in its distribution network as of 2024. Management commentary in late 2025 highlighted specific retail gains, including partnerships with Costco and a successful Walgreens test.

Here's a quick look at the recent financial performance tied to these wholesale volumes:

Metric	Q3 2025 Value	Comparison/Context
Quarterly Net Sales	$7.0 million	Up 4% year-over-year
LTM Net Sales (as of Sep 30, 2025)	$36.3 million	Total revenue for the trailing twelve months
Delivery & Handling Cost	$2.50 per case	Decreased by 14% from $2.99 per case year-over-year
SG&A Expenses	$4.2 million	Increased from $3.1 million in the year-ago quarter

Consumers seeking cocktail mixers (Ginger Beer/Ale)

This segment targets the traditional use case for the core Reed's brand, which is the authentic ginger beer and ale. Reed's remains the #3 brand nationally in the ginger category and the clear leader in authentic, all-natural ginger beverages. The company plans to enter the club soda & tonic mixer category with new products in 2026, expanding this mixer-focused customer base beyond just ginger beer. The core Reed's brand is positioned to premiumize this legacy category through craft positioning. You'll see this focus reflected in the company's operational goal to drive sales growth within its core Reed's portfolio.

• Reed's core brand holds the #1 consumer brand awareness in the ginger beer segment.
• The company is preparing for a full packaging and brand restage for Reed's Ginger Ale & Ginger Beer, with new mixers expected on-shelf in July 2026.
• The Q3 2025 net loss was $4.0 million, showing slight improvement from the $4.2 million loss in Q3 2024.
• The company had approximately $4.1 million of cash as of September 30, 2025.

Reed's, Inc. (REED) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Reed's, Inc.'s operations as of late 2025. The cost structure is heavily influenced by production and the necessary spending to fuel the next phase of growth.

The High Cost of Goods Sold (COGS) remains a primary cost driver. For the third quarter of 2025, the COGS hit $5.80 million. This resulted in a total cost per case rising to $13.20, which pressured the gross margin down to 17% for the quarter, even with net sales increasing. This is definitely something to watch as they push for product portfolio optimization.

Selling, General, and Administrative (SG&A) expenses saw a notable increase. For Q3 2025, SG&A was reported at $4.2 million, up significantly from $3.1 million in the year-ago quarter. This jump directly reflects management's strategy to invest in the future.

Here's a quick look at the key cost components for Q3 2025:

Cost Component	Q3 2025 Amount/Metric	Comparison/Context
Selling, General, and Administrative (SG&A)	$4.2 million	Up from $3.1 million in Q3 2024
Cost of Goods Sold (COGS)	$5.80 million	Total cost per case was $13.20
Inventory Write-offs	$0.1 million	Related to product portfolio optimization
Delivery and Handling Costs (Per Case)	$2.50 per case	Reduced by 14% from $2.99 per case in Q3 2024
Total Delivery and Handling Costs	$1.1 million	Reduced by 14% year-over-year

The increase in SG&A was explicitly tied to strategic spending, which you need to track closely. This spending is focused on scaling the business.

• Investment in personnel to strengthen the leadership team, including new Chief Marketing Officer and Chief Go-To-Market and Customer Officer hires.
• Investment in marketing and related services to support ongoing growth initiatives.

Furthermore, the company incurred specific, non-recurring costs impacting the gross line. Specifically, there were $0.1 million in inventory write-offs during Q3 2025, which management noted was due to product portfolio optimization efforts.

On the logistics side, Reed's, Inc. managed to bring down a key variable cost. Delivery and handling costs were reduced to $2.50 per case in Q3 2025, down from $2.99 per case the prior year, representing a 14% decrease in total costs for that line item to $1.1 million. Finance: draft 13-week cash view by Friday.

Reed's, Inc. (REED) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Reed's, Inc. (REED) revenue generation as of late 2025, which is heavily reliant on moving physical product through established retail channels. The business model is fundamentally about manufacturing and distributing premium, non-alcoholic beverages, with the bulk of the money coming from two established brands.

The trailing twelve-month (TTM) net sales figure, as reported through September 30, 2025, stands at approximately $36.3 million. This TTM number gives you the broader picture of the annual run rate, while the quarterly figures show the immediate momentum. For instance, the third quarter of 2025 saw net sales increase by 4% year-over-year, reaching $7.0 million. That modest quarterly growth was specifically attributed to higher volumes from Reed's branded products sold to recurring national customers.

Here's the quick math: The revenue streams are clearly segmented by brand importance, though the exact dollar split for the $36.3 million TTM is based on management estimates provided in analyst commentary:

Revenue Source	Estimated % of Total Sales (Late 2025)	Latest Quarterly Sales Driver Note
Wholesale sales of Reed's Ginger Beer and Ginger Ale	65%	Primary driver of the 4% Q3 2025 sales increase.
Wholesale sales of Virgil's Handcrafted Sodas	30%	Second pillar of revenue; transitioning from glass to cans by mid-2026.
Sales of emerging functional and other brands (e.g., SodaSmarter)	5%	Nascent platform representing a move into functional beverages.

The reliance on recurring national customer volumes is a key component of the revenue stability you are looking for. These are the established, high-volume retail relationships that provide a baseline for sales, which the company is actively trying to build upon through strategic hires and brand restaging efforts planned for 2026.

You should track the following elements that directly impact the top line:

• Wholesale sales of Reed's Ginger Beer and Ginger Ale, estimated at 65% of sales.
• Wholesale sales of Virgil's Handcrafted Sodas, estimated at 30% of sales.
• Sales of emerging functional and other brands, estimated at 5% of sales.
• Trailing twelve-month net sales of approximately $36.3 million as of September 30, 2025.
• Revenue derived from existing, committed national customer orders.

The company is making operational changes that directly affect future revenue realization, such as the transition of Virgil's and Flying Cauldron packaging from glass to cans, which is expected to be complete by the first half of 2026 to improve cost efficiency. This type of operational shift is defintely something to watch as it impacts the cost side of the revenue equation.

Finance: draft 13-week cash view by Friday.