Reed strategy for Kombucha sales increases revenue!
for the analysis I used "Earth Fare," with 29 locations in the south and mid west. Comparing product lines "Earth Fare," turns Kombucha sales as a whole on shelf space every other day. I found turn to be quite amazing and the space is occupied by primarily "GT" Synergy priced @ 2 for $6.00 in 16 oz bottles mainly with hunks of citrus in them located top shelf. Newest was "Celestial" kombucha @$3.49 in 16 oz bottles located mid shelf next to "Reed Culture Club" and "Buchi" located bottom shelf $3.69 for 12 oz. bottle. As noted Buchi was not competitive in price or size and warranted bottom shelf. "Reed Culture Club in 13.5 oz bottles with the "Fare Deal" price of 2 for $2.79. Heavily discounted with sales of 12 cases per week for the location I visited. "Earth Fare" has had "Reed" almost since "Reed" started shipping and while doing analysis shoppers we're putting "Reed" single bottles in cart and that is only sales I observed. In fact "Reed" had only 4 bottles left on a Friday afternoon while the other brands we're fully stocked suggesting sales could be higher if product was adequately ordered. Store raved about sales Kombucha especially "GT". "Reed" strategy is huge revenue and be "Walmart" Kombucha. Though comparison maybe not correct it is suggested "Reed" is selling quality product at a slightly smaller size the thought is for shipping and with a huge discount of more then 50%. Since "Reed" is heavily dependent now on Kombucha sales there is no doubt "Reed" can sell as much as they manufacture. With private label increasing "Reed" will keep rapidly increasing revenue and competitors will feel pricing power. "Reed" has made themselves extremely competitive.