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REEDS, Inc. Message Board

  • netprophecy2 netprophecy2 Feb 24, 2014 11:54 AM Flag

    fairway status

    still on lower shelf. six flavors, lightly stocked over 8 shelf spaces. now sharing shelf with Brooklyn Kombucha BK. GT with two full shelves at eye level. definite merchandising demotion for reeds. no difference between bottles of BK and reeds in terms of distinguishing graphics. BK had half the space reeds had. cabernet was sold out. this is not a good trend for them for fairway. it will certainly impact sales.

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    • Fairway isn't slug fest, as its not a major chain. BK isn't a broadcast brand so I'd relax. Finally, all of us know there's an artificial takeover bid under Reed's stock. Therefore, any increment or surprise in sales run will be magnified$

    • This guys continues to point out negatives that may or may not have even an ounce of validity. So his opinion - in my opinion - is pretty worthless. Lower shelf, Lightly stocked, sharing shelf space, competitor with ......., merchandising demotion...cabernet was sold out (actually a good thing) best flavor I think..... "not a good trend"...."it will certainly impact sales" etc. etc. etc. ....you've seen his type before....

      Sentiment: Buy

      • 1 Reply to ahabstriumph
      • hey douchebagel,

        i am pointing out what i observe. if you think fairway merchandising is unimportant, that is fine. but clearly, the shelf observations are valid. if i saw reeds space double and gt dropped to a low shelf it would be wildly meaningful. i only buy reeds K, cuz i own the stock. but the last two trips to the store i had to look hard for the reeds. at the whole foods, i had to look really hard, because its not THERE! however, WF does stock a small selection of Hains Celestial K. an investor in reed would certainly find that interesting.

        the takeover premium in this stock is of course enormously impactful since the company has no PE, since they are not profitable or barely so. very tough to value the shares. 2x sales maybe? who knows. however, i think what is very likely is that GT gets bought or goes public. as a public company GT is worth more than a billion dollars now i would guess. at some point they decide they need to advertise and crush Reed and Hain and all the other little pretenders. if KO or Pepsi make an acquisition, they want GT, not Reed. Reed will be bought by the loser. GT is the prize. however, when that happens, it will affect Reed stock price. analogy would be google buying nest and the ELON type companies doubled briefly until reality set in.

        i think reed can double this year as long as shares dont trade relative to a PE. top line growth is key, but they have left a lot on the table through lack of marketing, etc.... they do have brand integrity and a good product. they do not understand the K market though. they think it is the same as soda and that is their marketing approach. they also have not really exploited their soda market advantage. some of their brands i think have been completely neglected through lack of proper brand management. "china cola"? omg let's just call it fukushima cola. make it an energy drink. i just think they lack enough personnel and focus. it could be a 1B$ company.

 
REED
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