Hartford Business Journal

18 HARTFORDBUSINESS.COM | JUNE 30, 2025 Reed's Inc. CEO Cyril Wallace stands beside a cooler stocked with the company's beverages at its Norwalk headquarters. HBJ PHOTO | MICHAEL JULIANO Turnaround Effort Struggling CT soda maker Reed's Inc. has a new CEO; he's focused on fixing supply chain, raising brand awareness The company is eyeing a new factory in the southern U.S., and could add other U.S. production facilities, depending on where it sees business growth, Wallace said. Brand awareness Reed's must also do a better job telling its story, Wallace said, espe- cially in a $97 billion U.S. soft drink market where Coke and Pepsi are dominant brands. "What I mean by that is do people know Reed's?" he said. "Do they understand that we're producing (beverages) with organic ginger that's sourced from some of the best places around the world?" He said Reed's is considering numerous ways to heighten its visibility through a 360-degree marketing plan, such as carrying out a brand makeover and trying different advertising platforms. Today's consumers are shifting from sugary drinks to healthier bever- ages, but Wallace said that has had minimal impact on Reed's business. Many consumers appreciate the company's use of natural ingredients and zero-sugar offerings, he said. In May, Reed's launched a new multifunctional soda line that offers customers healthier options. The four flavors — Berry Bubbly, Strawberry Vanilla, Root Beer and Lemongrass Ginger — are low in sugar (averaging 5 grams per can), range in organic ginger content, and contain only 30 to 45 calories. Another area of opportunity is getting its drinks into more bars and restaurants, which currently make up less than 1% of Reed's sales, Wallace said. The company's goal is to make a profit this year, but Rome was not built in a day, he said. In the first quarter, Reed's posted a $2 million loss on $10 million in revenue. "Right now, our focus is to expand the U.S. market, because we know that this is a massive market for us," he said. "I think the sky's the limit in terms of what we can do and where we can take this business." By Michael Juliano mjuliano@hartfordbusiness.com C yril Wallace is in the midst of a turnaround effort. In May, he was named the new CEO of Reed's Inc., a Norwalk- based producer and distributor of ginger beer and ale that has recorded years of annual losses amid supply chain and other issues. The 21-employee company, headquartered at 501 Merritt 7, has struggled with production imbal- ances — making too much or too little of its beverages — that have caused costly inventory surpluses or rushed efforts to meet demand, said Wallace, who most recently served as a vice president and general manager at soft drink giant PepsiCo Beverages North America, where he oversaw a $3.2 billion territory. He was sought out by Reed's board of directors to take over the company's top leadership post, following former CEO Norman Snyder's retirement. Wallace said he's focused on improving the company's supply chain, spending cash more effec- tively and boosting Reed's profile among U.S. customers. "As part of my vision for the future, it is investing in the right places," Wallace said during a recent inter- view in his Norwalk office. Getting to know you Reed's Inc., which was founded in 1989, owns a portfolio of hand- crafted, natural beverages sold in over 32,000 U.S. retail outlets, including Walmart, Whole Foods, Food Lion and Amazon.com. The company's two core brands are Reed's — which includes craft ginger beer, real ginger ale, classic mules, and hard ginger ale — and Virgil's handcrafted sodas. Reed's says its craft ginger beers use fresh ginger root combined with a Jamaican-inspired recipe of natural spices, honey, pineapple flavors and fruit juices. Overall, the company has about 50 products sold throughout the United States and internationally in the United Kingdom, European Union, Caribbean, Canada and South Africa. It produces beverages through a network of nine independent manu- facturers and has five independent distribution centers. Its headquarters has been based in Norwalk since 2018. Previously, it was based in Los Angeles, but moved to the East Coast to be closer to other large beverage companies and capitalize on the region's strong market potential, according to Douglas McCurdy, Reed's chief financial officer. Just in time Financially, the company has strug- gled for some time. It has not posted an annual profit since it went public in October 2006, according to regulatory filings. Its shares trade on the OTC Markets and usually hover around $1. In 2024, Reed's posted a 15.1% drop in revenue to $37.9 million, while its $13.2 million net loss was flat from a year earlier. Liquidity constraints resulted in inconsistent inventory production and fulfillment of customer demand, McCurdy said. Higher labor costs, greater demand for raw materials and port congestion also negatively impacted the company. Reed's in 2024 also went through a debt restructuring, and raised $10 million in a private placement deal. It's now majority owned by D&D Source of Life Holding Ltd., which is controlled by Shufen Deng, who is Reed's board chair. Her company bought $3 million in Reed's shares in May 2023, and an additional $7.9 million in shares last September. Wallace said the company is focused on supply-chain management, particularly just-in-time inventory — a strategy where businesses receive goods only when they are needed, minimizing inventory holding costs and waste. "We're being much more strategic and thoughtful in terms of how we're planning our business two or three months in advance," Wallace said. "I've brought a little bit more rigor in terms of ensuring that we're protecting our supply chain partners, and also righting the ship in terms of our customers. … We have a better process to link our demand and forecast for sales to production, so that we're now trying to make sure that we have just-in-time inventory and are not overproducing." The company uses production facilities across the country, including a factory in Los Angeles that it once owned, and a co-packing facility in Erie, Pennsylvania. Wallace said Reed's could further improve supply-chain efficiency by better coordinating ship- ments between its East and West Coast locations. AT A GLANCE Reed's Inc. Industry: Beverage manufacturing Top Executive: Cyril Wallace, CEO HQ: 501 Merritt 7, Norwalk Employees: 21 Annual Revenue: $37.9M Website: store.drinkreeds.com CYRIL WALLACE CEO Reed's Inc. Education: Bachelor's degree in marketing, Georgia State Univer- sity; MBA in project manage- ment, Keller Graduate School of Management at DeVry University Age: 45

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