When Tony Haralambos considers a new brand for his distribution empire in Southern California, it seems that he doesn’t heavily weigh the opinions of Wall Street. That argument gained credence on Tuesday when Reed’s announced a distribution partnership with Haralambos.
“Tony Haralambos has a great track record with new and innovative brands, with some very big wins such as vitaminwater,” Reed said in a joint release. “We are very excited to be partnered up with Tony for our continued roll out in Southern California.”
That excitement follows a share nosedive for the maker of Reed’s Ginger Brews, Virgil’s Root Beers and Culture Club Kombucha. During a Reed’s earnings call on March 25, CEO Chris Reed shared his company’s marketing budget, which jumped from 9 percent of gross revenue in 2012 to 12 percent in 2013. Despite the 3 percent jump, the company’s net sales growth of 24 percent ($37.3) million fell short of the goal for the company and investors. Among other factors, the number led to REED shares dropping from $8 to less than $6 the day after the call.
But the share declines didn’t sway Haralambos. He saw gross revenue increases of 28 percent to $42.2 million. He considered the promise of a kombucha line already soaring off shelves across the U.S.
“[Haralambos Beverage Company] is truly excited to launch this long awaited relationship with local Los Angeles legend, Reed’s,” Haralambos said in the release.
Haralambos serves as the primary beverage distributor in its massive region, carrying craft beer powerhouses such as Sierra Nevada and New Belgium and non-alcoholic beverage brands such as Snapple, AriZona and Sparkling ICE.
The full release follows:
LOS ANGELES, Calif. — Reed’s, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has partnered with Haralambos Beverage Company (HBC), based in City of Industry, California, to begin immediate distribution of the full line of Reed’s Ginger Brews, Virgil’s Root Beers and Reed’s Culture Club Kombucha throughout southern California. HBC is best known for pioneering consumer trends, servicing both on and off-premise outlets. Currently, HBC manages distribution for over 70 suppliers, including a wide variety of local, craft and imported beers including Sierra Nevada, Genesee, Fat Tire, Fireman’s Brew, Carlsberg Lager, Kronenborg and Sapporo. Additionally, the HBC portfolio includes numerous cutting edge national brands of dairy, juices, waters, functional beverages and teas distributed throughout the region of Los Angeles, San Bernardino, Orange, Riverside, and Kern Counties.
Chris Reed, Founder and CEO of Reed’s Inc. stated, “Haralambos has been a leader in Southern California distribution for quite some time. Tony Haralambos has a great track record with new and innovative brands, with some very big wins such as Vitamin Water. We are very excited to be partnered up with Tony for our continued roll out in Southern California.”
Tony Haralambos, President of Haralambos Beverage Company stated, “HBC is truly excited to launch this long awaited relationship with local Los Angeles legend, Reed’s, Inc. Chris Reed’s innovative products and devoted fan base will absolutely enhance our portfolio of drinks and retail customers at HBC. Traditionally, Reed’s & Virgil’s sodas have been consistent top sellers in all retail channels, and their Kombucha line has launched so successfully that we are eager to partner with this dynamic brand!”
About Haralambos Beverage Company
Haralambos Beverage Company is a full service beverage company. Since 1933, HBC has been a marketing and industry leader serving over 10,000 retail and customer accounts. HBC offers a variety of warehouse and distribution services to retail and customer accounts. We offer a complete full service sales and telemarketing team.
Haralambos Beverage Company proudly services Los Angeles, San Bernardino, Orange, Riverside, and Kern Counties.
Like most success stories, ours is one of humble beginnings. It begins in 1920 with a simple grocery store on Brooklyn Avenue in Los Angeles, operated by a young Greek immigrant named Thomas Haralambos. Through sweat and determination, he survived the Great Depression and upon the repeal of prohibition in 1933, opened one of the area’s first liquor distributorships. The company grew throughout Southern California, pioneering many of the most successful liquor brands of their time. In 1956, after his tour of duty in the U.S. Army, Tom’s son Lambi joined the company and expanded it into beer and non-alcoholic beverages. Seeing Lambi’s success, Tom sold the liquor portion of the business and realized a lifelong dream of retiring with his wife to live again in Greece.
Today, Lambi is Chairman of the company, with sons Tom and Tony Haralambos representing the third generation. Most recently, Tom’s two sons decided to join the family business representing the fourth generation at Haralambos Beverage Company. Haralambos Beverage Company continues to operate as one of the most innovative and successful family owned and operated businesses on the West Coast. “We think our father, grandfather and great grandfather would be proud.”
About Reed’s, Inc.
Reed’s, Inc. makes the top-selling natural sodas in the natural foods industry and is sold in over 15,000 natural and mainstream supermarkets nationwide. In addition, Reed’s products are sold through specialty gourmet, natural food stores, retail stores, convenience stores and restaurants nationwide and select international markets. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil’s Root Beer product line, and a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed’s Culture Club Kombucha line of organic live beverages. Other product lines include: Reed’s Ginger Candies and Reed’s Ginger Ice Creams. In 2009, Reed’s started producing private label natural beverages for select national chains.