Reed’s, Inc. announced earlier today that it has engaged the services of San Francisco-based Partnership Capital Growth Advisors (PCGA). As terms of the agreement, PCGA will introduce the company to potential strategic partners within the beverage industry.
Chris Reed, Founder and CEO of Reed’s, Inc., commented, “Partnership Capital Growth is ideally suited to assist Reed’s with identifying opportunities for strategic partnerships and investment to help bring the company to the next level. I have first-hand knowledge of PCGA’s expertise in this space and I am confident that they can introduce Reed’s to companies that will synergistically help us to grow our brands and distribution.”
Brent Knudsen, Founder and Managing Partner of PCGA, stated, “Reed’s is an exciting opportunity with the leading soda brands in the high growth natural food channel, and a perfect fit for our focus on identifying and concluding strong partnerships to continue and accelerate growth.”
Mr. Reed added, “Transactions of similar companies in our space, like Izze and Honest Tea, have had valuations of 3 times and 5 times sales respectively. These deals were done in a more robust economy; however, more recent private transactions in our space have still been in the 2 to 3 times sales valuation range. Our public stock is currently trading at one times sales. We would require valuations more in line with the current private transactions in our space from interested parties.”
“We’re looking for a partner who can bring resources, distribution, and production buying power to our brands,” continued Mr. Reed. “We are the top-selling soft drinks in one industry in the US, the natural food industry. With the right partner, we expect that we can be a top-seller in mainstream, too.”