Chris Reed’s dream of a manufacturing base in California has come true, though not the way he originally envisioned.
True enough, cases of Reed’s Ginger Brew continue to flow out of the 30,000 square foot production facility in incorporated Los Angeles, and at an all-time peak in quality as well, if you ask Reed himself. But the company that bears his name is not the plant owner’s but rather a co-packing client of California Custom Beverage, Reed’s independent beverage venture which bought the facility and went online in January 2019. After overcoming some initial obstacles, Reed is eager to showcase his prowess for “old-school natural” beverage making.
“I’m not just a ginger beer guy,” he said. “I love what I do and I don’t mind that I’m just a niche guy.”
Back in 2017, the plant — a mix of manufacturing, distribution and office space — was envisioned by Reed, then Reed’s Inc. CEO, as the centerpiece of a corporate strategy focused on boosting production capacity for the company’s wide array of brands and products. Instead, following a dip in sales and a clash with a group of shareholder activists pushing for the company to change its model, Reed resigned that August. Under new management, Reed’s Inc. abandoned its plans to invest in manufacturing and trimmed its product portfolio in favor of focusing on marketing and sales for its core products.
The company announced the facility was up for sale in January 2018, and Reed’s Inc. CEO Val Stalowir said the company had recently completed a multi-million dollar project to upgrade electrical, water filtration and gas supply systems at the facility, as well as spending $4 million on new equipment which “we really haven’t taken out of the packaging.” When the company failed to generate the offers it expected, Reed decided to step in.
But upon taking the keys to the plant on January 1, his new venture had to navigate a delicate transition for the first six months while operational upgrades were being completed. For Reed, by his own admission more used to “low-tech” (at one point he capped his own bottles by hand) making the leap had its learning curve.
“We went from a $15,000 used labeler to a $675,000 brand new, very high-tech labeler with a lot of finicky stuff going on,” he said. “We had all these contracts we had to fulfill so we had to run even if we weren’t really ready, and we weren’t truly ready. The efficiencies were hell.”
While Reed may not be “just a ginger beer guy,” he remains in many ways the ginger beer guy. Though no longer actively involved in corporate strategy at Reed’s Inc., he acquired the company’s private label business as part of the deal and is still the man behind the scenes tweaking the formulations and refining the flavors as Chief Innovation Officer. He suggested that his recent work on the classic ginger brew has pushed it to an all-time peak in quality. “Anyone who’s been drinking Reed’s will notice over the last six months that the product has gotten even better,” he said.
But California Custom Beverage also represents a chance to take a step beyond his eponymous ginger brew, and in speaking with Reed, it’s clear that he’s relishing this opportunity. Running a small team, which includes his son, Reed teased special equipment modifications — “I tooled the plant to run things that nobody else can run in North America,” he said — and praised glass packaging (“I think there’s something pure about glass.”). The ability to produce a variety of lids, including swing tops, foil tops, crown cap and ROPP closures also allows for more creativity in package design and a way to do “iconic things.”
By Reed’s own admission, however, the facility has some limitations in its current format. In addition to working exclusively in glass packaging, the company also subcontracts certain projects to a co-packing partner on the East Coast. Reed said he’s open to installing a canning line or other equipment needed for certain beverage types if the situation requires; “We’re MacGyver,” he quipped. Recall that during his time running Reed’s Inc., the company topped out at over 100 SKUs including kombucha and energy drinks.
Now operating as an independent, and having gone into the black in April, he says he’s free to flex his talent as a flavor chemist and product developer on his own terms, with a focus on premium natural ingredients over flavorings.
“When I’m talking about developing products, it’s not just being natural for the sake of being natural,” he said. “It’s being natural because it tastes better. It’s just a superior product.”