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KonaRed Corporation Announces 98% Revenue Increase In 2016 And Provides 2017 Outlook

KRED

- Comparative Fourth Quarter 2016 Revenue Up by 422% -

PR Newswire

KOLOA, Hawaii, Jan. 25, 2017 /PRNewswire/ -- KonaRed Corporation (OTCQB: KRED), manufacturers of premium Hawaiian Cold Brew Coffee and Whole Bean Coffee products and the pioneer of the USA coffee fruit category, today announced record growth in the 4th quarter of 2016 which projects to an upward trend of revenue growth for 2017.

During the year ended December 31, 2016, KonaRed's comparative total revenue grew by 98% to $1.26mm for 2016 from $635,503 for 2015. Total revenue for the comparative 4th quarter periods grew by 422% to approximately $470K from approximately $90K, including a one-time license fee of $200K in Q4 2016. KonaRed's new line of Cold Brew Coffees accounted for 68% of product sales for Q4 of 2016 and 49% for the  full year. During 2016, Cold Brew sales increased from a starting point of $22,000 in Q1 to a total of $613,200 by year-end.

KonaRed's CEO Shaun Roberts commented, "We made big strides in 2016 with our award winning Cold Brew Coffees and new line extensions that are driving our revenue growth.  Our new Bag in the Box Cold Brew Coffee is now available at Costco Hawaii and we've been methodically expanding our customer base. Recent successes have included additional distribution in Safeway, Bristol Farms and 7-11 Stores.  Revenues are up and we've been diligently working to reduce expenses and focus in on our path to profitability."

KonaRed is continuing to rapidly bring on large new customers such as Publix with 1,100 stores in the southeastern United States and new Safeway and Whole Foods Market regions. The Company's award winning Cold Brew Coffees are becoming established as leaders in the fast growing Cold Brew Coffee category.  Average quarterly sales growth for KonaRed's Cold Brew Coffees during 2016 was over 160% and its Cold Brew Coffee sales are expected to accelerate and exceed an average quarterly growth rate of approximately 65% during 2017, with significant peaks during the mid-year summer periods. If trends continue as expected, conservatively, Cold Brew Coffee sales should grow by approximately 5 times 2016 sales to approximately $3.0 million in 2017 which would increase total revenue to approximately 3 times 2016 total revenue.

To fuel the growth, the company completed a $1.14mm strategic investment from the PCF Holdings Group and recently added long time beverage industry icon, James S. Tonkin, to the Board of Directors. Jim is the founder and President of HealthyBrandBuilders and will be a key advisor to the company as we continue our revenue growth. 

Mr. Tonkin commented: "Timing is everything with new product trends and KonaRed's Cold Brew Coffee is making a big mark - right now! I'm looking forward to contributing to KonaRed's growth at this transition time for the Company as I see the Company lining itself up to be a definitive category leader."

About KonaRed Corporation
KonaRed® Corporation is the pioneer of the USA Grown, Hawaiian Coffee Fruit. The company oversees a vertically integrated supply chain, which starts with the highest quality Coffee and Coffee Fruit from Kona, Hawaii. The Company produces five Ready to Drink ('RTD') Cold Brew Coffee varieties, plus its well-established RTD Premium Antioxidant Juices, 100% Hawaiian Coffee Fruit Powders and three varieties of Kona Coffee Beans. The Company also has an industrial ingredients division. KonaRed products are sold throughout the U.S. and can be found in select Kroger, Safeway, Vitamin Shoppe, Target, Whole Foods, 7-Eleven, Vons, Albertsons, Pavilions, Walgreens and many other retail outlets. More information about KonaRed and its products can be found at www.konared.com.

Forward Looking Statements
Certain information contained in this press release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, are forward-looking statements. The words "believe," "expect," "will," "anticipate," "contemplate," "target," "plan," "continue," "budget," "may," "intend," "estimate," "project" and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to its plans or operations. Our actual results may differ materially from the results anticipated in these forward-looking statements due to a variety of factors, including, without limitation those set forth as "Risk Factors" in our filings with the SEC, which can be found at www.sec.gov. There may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from those projected in any forward-looking statement. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact:
Redwood Investment Group
Tel: 714 978-4425

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/konared-corporation-announces-98-revenue-increase-in-2016-and-provides-2017-outlook-300396305.html

SOURCE KonaRed Corporation



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