Walrus Partners reports Kombucha market $300 million Reed attacking!
Missing link to article is Reed is already across country in majors with all products including Kombucha. The big question is will the competition lower price points to meet Reed pricing or continue to ignore sales. Reed's enty point pricing will rise as they are established to a profitable level. It is my contention Reed sacrificed one quarter for the expansion and shelf space. Shorts and doomsayers will have you believe that the line is short lived? Obviously not by the long term of GT Dave being around since approximately 1995. If the market facts are correct of $300 million Reed should capture 10% rapidly! Considering that fact and expansion of private labeling and the fact Reed is able to do promotional pricing on bottled soda something competition cannot. For example recently Reed bottled soda was $2.99 in Giant Eagle Midwest grocer competing well against Walmart and Kroger among others while Jones is $4.99. Even with sale off this week Reed is $4.29 on a better product. East coast bottlers we're all above Reed pricing. Furthermore Kombucha may hit mainstream grocers if Reed can deliver due to pricing and manufacturing constraints which Walrus Partners explains. At $3.00 to $3.69 bottle competition is too expensive for most mainstream grocers. Reed is $2.79 and promotional @ $1.40. It is my contention Reed is about to explode Kombucha sales due to quality which it is reported on natural food sites on You Tube Reed has and for the mainstream Pricing. if Walrus Partners is correct and Reed is about to manufacturer more flavors and substantially up production to meet demand Reed is about to reveal even more explosive growth. Currently mainstream buyer maybe confused by the flavors which there are 3. Grapefruit, cranberry, and raspberry. My guess is cranberry appeals more to female market whom I guess is purchasing Kombucha. Realizing additional flavors will attract more men. Entry into mainstream market which primarily be grocers will explode market. At this point sales of Kombucha are at a high level and turn is explosive note the fact that Hain Celestial recently entered competition. Mainstream grocers cannot ignore this profitable sku.
The changing Komb pricing scenario going from a full price to an introductory one is the better way to go. For a time being, forget about level pricing against the leading brand and expecting consumers to drop their hats and give Reed's a try. They can return to premium pricing when new flavors and volume uptake coincide with product awareness and market share inroads. At the end of the day, Reed's needs to execute superbly (like a Rodney Sacks of Hansen aka Monster Beverage did to create a full fledged beverage empire) on sales, marketing, distribution and customer satisfaction!
from my limited counts in a select area Reed is flying off shelves in Kombucha sales. In fact most likely due to pricing the demand for Reed and the shelf space allotted is unsatisfactory. Reed needs more shelf space.