Norwalk-headquartered Reed”™s Inc. (OTCQX: REED) has signed a manufacturing partnership with the U.K. beverage manufacturer Somerset Cider Solutions that will provide Reed”™s with a cost-effective way to produce Virgil”™s sodas close to the British market.
Under the terms of the partnership, Somerset Cider will produce Virgil”™s Root Beer, Virgil”™s Black Cherry, Virgil”™s Vanilla Cream Soda and Virgil”™s Orange Cream Soda. Empire Bespoke Foods, the long-time distributor for Virgil”™s sodas in the U.K., will leverage this lower cost model to drive new distribution and strengthen sales in existing accounts.
“We are excited to partner with Somerset Cider Solutions and Empire Bespoke Foods to write a whole new chapter for Virgil”™s in the U.K.,” said Norman E. Snyder, CEO of Reed”™s. “The U.K. has been a very strong market for our classic, bold flavors of Virgil”™s sodas. However, as a result of inflationary pressures, pricing to consumers has increased disproportionately within the market segment. This new model will get us to market much more efficiently, allow us to be more price competitive, and position the brand for further expansion. We also anticipate leveraging this production model in the EU in the near-term and in Asia later in 2023 or 2024.”
