Reed’s, Inc. (NASDAQ:REED) Q3 2022 Earnings Call Transcript

We remain bullish on where we can go, but it’s just been a little bit delayed and where we’re able to get those products in, they’ve done well. So you’ll start to see some more expansion in 2023 that we expected. We really expected to have done in 2022.

Sean McGowan: Okay. So you’re not seeing that the consumer’s not accepting the alcohol product, you just not able to get it to where you wanted to be in distribution yet?

Norman Snyder: Correct.

Sean McGowan: Okay. Great. Thanks. And the second question is, seems like Virgil’s is showing more price sensitivity on the part of the consumer than some of the other products, so that’s a head scratch, well, why would that be?

Norman Snyder: I could speculate. I don’t know if that’s going to solve anything. That market is kind of moved in a lot of different directions. I mean, I think last year you saw some lower price competing brands that were facing supply chain issues that really restricted their ability to get to the marketplace that have come back. And I think they’ve recaptured a lot of their market share and obviously being a lower priced item in an inflationary environment, I think it does have its positive implications. But at the other side of the equation, if you look at our limited edition swing-lid products, which are premium priced, they’re still growing and doing better. So I think it all depends by market, what brands are there, and we’re seeing both €“ in this case both high-end and low-end price €“ premium priced items as well and maybe some in the middle that are getting squeezed somewhat.

Sean McGowan: Okay. Thank you.

Norman Snyder: You are welcome, Sean.

Operator: Thank you. And that does conclude the question-and-answer session. I’ll now turn the conference back over to Mr. Norm Snyder.

Norman Snyder: I want to thank everyone for participating in today’s call. Again, I want to reiterate our confidence for the balance of the year and into 2023 as we continue to progress towards our plan of achieving positive modified EBITDA and cash flow next year. We appreciate everyone’s support and I hope you all have a wonderful evening.

Operator: Thank you. That does conclude today’s conference. We do thank you for your participation. Have an excellent day.