it is becoming clearer that these guys do not understand what they are doing. i think in different
hands the growth rate would be much, much higher. to have a 20% growth on a product with such low sales is not impressive. 20% is great. wonderful. but it will take 3-4 years to double sales. an aggressive manager coming off such a low base would want to double sales every year or two at this rate. the fixation with 600 grand in sales was shocking. and the taunting of GT at 200 million in sales? what? like a local bakery taunting hostess and saying how superior the product is. my microbrew brew is so superior to budweiser, i am sure we will give them a good run for the money.
K is on fire as evidenced by big stockpiles of K that keep vanishing from store shelves. Reed's is striking when the iron is hot. This strategy is pretty much a no brainer. No understanding required. It is also why Buffet prefers to have an idiot running a company.
actually that is not the case. they sold 29k cases. that is not on fire. no one thought that was awesome. sorry. i hope they keep improving so my stock goes up. i think they will continue growing at a solid 20% rate. very nice. awesome? hardly. on fire? hardly. in the meantime, the soda business seems a complete afterthought. new soda flavors? yawn. no. yawn. i think reed is a buy. i think eventually it gets bought out. i think they do not really know how to grow the company more aggressively and that is why its a tiny company.
many beer companies in the same period of time grew from start up to worth hundreds of millions and got bought by major brewers. they understood.
Doesn't anyone grasp that starting K- was like launching a whole new business (most business don't generate profits at get go and it takes time to charm the snake). You'd wouldn't be a good shareholder fiduciary if you didn't go after larger markets which your skill-set and experience are qualified to address. If CR can keep making great tasting K akin the ones already rolled out then It makes sense to stay in the batters box and swing at fat pitch for round the bases hit$