Reed’s, Inc. (NASDAQ: REED) issued weak preliminary third-quarter sales guidance.
The Norwalk, Ct.-based company, owner of the nation’s leading portfolio of handcrafted, all-natural beverages, today announced a restructuring of its executive leadership team to accelerate its continued business transformation to an efficient and effective asset-light model.
The leadership changes include the appointment of John Bello, currently Chairman of the Board of Directors, as Interim Chief Executive Officer and the appointment of Norman E. Snyder as Chief Operating Officer. Additionally, REED has announced preliminary third quarter 2019 net sales.
For the third quarter of fiscal 2018, the company anticipates net sales of approximately $8.5 million, reflecting 3% to 4% core gross sales growth versus the prior year period.
"Our third-quarter results reflect the short-term supply chain challenges that began at end of the second quarter and modest improvement is anticipated as we exit the year," said Bello.
"However, we are pleased to report that we have seen improvement in fulfillment rates, have expanded our contract manufacturing relationships and are executing on our initiatives to broaden production and support our strong product innovation efforts as we enter 2020."
Reed's boasts a status as America's best-selling Ginger Beer brand and has been "the leader and innovator in the ginger beer category for decades."
Its Virgil's brands is America's best-selling independent, full line of natural craft sodas. The Reed's Inc. portfolio is sold in over 35,000 retail doors nationwide.
REED stock began Tuesday down 17 cents, or 13.1% to $1.13
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