Norwalk-based beverage maker Reed’s Inc. disclosed Tuesday it’s expanding its turnaround efforts following a recent leadership shakeup, as the company reported a sharp drop in first-quarter sales and a wider net loss.
The maker of Reed’s ginger beverages and Virgil’s sodas said net sales for the quarter ended March 31 fell 29% to $7.1 million, from $10 million a year earlier. Its net loss widened to $6.5 million, compared with a $2 million loss in the first quarter of 2025.
The results come less than two months after Reed’s announced the departure of CEO Cyril Wallace, who had been hired in 2025 to lead a turnaround effort. Former Chief Operating Officer Neal Cohane was named interim CEO in March.
In its earnings release, Reed’s said it has taken additional steps to stabilize the business, including reducing headcount and marketing-related expenses, postponing certain brand initiatives, restructuring its Amazon fulfillment operations, increasing engagement with retail and distribution partners, and reviewing pricing and supply chain operations.
As of March 20, Reed’s said it had 44 full-time employees, which was up from 24 as of Dec. 31, 2024.
The company also said Damian Warshall has been appointed chief operating officer. Warshall previously worked at Reed’s, according to the company.
Cohane said the company moved quickly to address operational and commercial challenges following weaker-than-expected first-quarter performance.
Reed’s has struggled to achieve consistent profitability for years. For full-year 2025, the company reported net sales of $34.1 million and a net loss of $15.8 million.
