A Hawaii company producing beverages from the fruit and seeds of coffee plants more than doubled its sales in the third quarter but also had a bigger financial loss.
KonaRed Corp. said in a financial report filed with the U.S. Securities and Exchange Commission on Friday that its revenue surged to $404,089 in the three months ended Sept. 30 from $174,418 a year earlier while its net loss widened to $1.06 million from $867,965 in the same comparable period.
THIRD-QUARTER NET LOSS
$1.06 million
YEAR-EARLIER NET LOSS
$867,965
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The Kauai-based company said its revenue boost was from selling much more cold-brewed coffee, which it introduced in February as part of a shift away from a “superfruit” drink that uses the pulp surrounding coffee beans.
KonaRed said cold-brewed coffee it sells in 12-ounce glass bottles represented 76 percent of its third-quarter revenue, or $307,000 of the $404,089 total. That was up from $99,000 in cold-brew coffee sales in the second quarter.
Kyle Redfield, company president, said in a statement that KonaRed has an early foothold in what he called a major trend. “Cold brew is now KonaRed’s major marketing focus,” he said.
The company began with three flavors of cold-brew coffee — original, Hawaiian vanilla and espresso — in February, and in August added “Kauai Caramel” and “Maui Mocha.”
KonaRed was founded in 2008 and invested heavily in research and development of its initial beverage, presented as a wellness product made from coffee cherry. To sustain operations, the company has largely sold stock, and said it expects such sales will continue to keep the company running. At the end of the third quarter, KonaRed’s accumulated deficit was $22.8 million.
Shares of KonaRed stock closed at 53 cents a share Monday, up 1 cent from Friday. Over the last 52 weeks, shares of KonaRed closed between 70 cents on Nov. 27 and 45 cents on July 12.