KonaRed reports triple-digit rise in CPG sales in Q3
Net sales increased 95 percent in the third quarter
KonaRed Corp., Koloa, Hawaii, announced its third-quarter and year-to-date financial results for 2014. The company manufactures a line of antioxidant juices and nutritional supplements featuring the Hawaiian CoffeeBerry coffee fruit.
During the third quarter, net sales for the company increased 95 percent to $341,264, compared with $174,581 in the third quarter of 2013. Product sales increased 97 percent to $332,867, compared with product sales of $169,262 in the prior-year period. The most significant growth, however, came from the company’s consumer product sales, which grew 439 percent to $328,667, compared with $60,944 in the prior-year period.
KonaRed also increased its investment in advertising and marketing to $252,404 for the third quarter, compared with $32,452 for the same period in 2013.
For the nine months ending Sept. 30, net sales increased 46 percent to nearly $1.3 million, compared with $870,000 for the same period in 2013. Product sales increased 39 percent to nearly $1.2 million year to date, compared with $850,000 in the prior-year period. Consumer product sales increased 120 percent to $1.1 million, compared with $504,404 in the prior-year period.
The company’s investment in advertising and marketing increased to $714,309 for the nine months ending Sept. 30, compared with $73,988 in the prior-year period.
KonaRed attributes its sales increases to key initiatives that include the company's alliance with Fort Lauderdale, Fla.-based Splash Beverage Group as well as the expansion of its distribution network into national chain stores, including Walmart, Kroger and Vitamin Shoppe.
"We hit several milestones this quarter — both operationally and financially — that further expand our footprint in the functional wellness beverage market,” said KonaRed Chief Executive Officer Shaun Roberts in a statement. “We generated triple-digit product sales growth for the third quarter and have been successful in adding new stores and retail partners through our distribution channels. We continue to work hard and diversify our revenue stream to generate value for our shareholders."