Reed's Taps Veteran Neal Cohane as COO to Steer Turnaround

NORWALK, CT – December 29, 2025 – In a significant strategic maneuver, natural beverage maker Reed's, Inc. (NYSE American: REED) has announced the return of a familiar face to its executive suite, appointing Neal Cohane as its new Chief Operating Officer, effective January 5, 2026. The move brings a 15-year company veteran back into the fold at a critical juncture, as Reed's navigates declining revenues, a volatile stock price, and an increasingly competitive market.

Cohane, who previously served as the company's Chief Sales Officer for over a decade, is being tasked with leading sales, marketing, and operations. His appointment is being framed by the company as a pivotal step toward renewed growth and operational stability. CEO Cyril Wallace expressed confidence that Cohane's leadership will drive “operational excellence and long-term value for our shareholders,” a sentiment that investors will be watching closely as the company fights to reverse its recent fortunes.

The Return of a Distribution Mastermind

Neal Cohane is no stranger to the challenges and opportunities within the beverage industry or Reed's itself. Before his departure in December 2022, he spent 15 years shaping the sales strategy that placed Reed's®, Virgil's®, and Flying Cauldron® products in stores across the nation. His career is storied, with senior leadership roles at industry titans like PepsiCo, SoBe, and The Coca-Cola Company, giving him a panoramic view of the competitive landscape.

After leaving Reed's, Cohane founded Rootstock Brands, Inc., an advisory firm focused on go-to-market strategies for beverage companies, and most recently served as Chief Sales Officer at Eastroc Beverages. This blend of deep institutional knowledge of Reed's brands combined with fresh, external experience is what Wallace highlighted as making Cohane “uniquely qualified to lead our operations as we enter our next phase of growth.”

Cohane's return is a clear bet on his proven expertise in a core area of need: distribution. In a statement, he outlined his primary objectives: “securing new channels of business, expanding our distribution through new doors, increasing velocity across all our existing channels, and deepening our distributor and retail partnerships.” For a company whose products are in over 32,000 stores but has struggled to translate that footprint into consistent profitability, a renewed focus on the mechanics of sales and distribution is a logical, if demanding, prescription.

Navigating Financial Headwinds

Cohane’s appointment comes as Reed's faces significant financial pressures. The company's performance has been a source of concern for investors, creating a high-stakes environment for the incoming COO. In 2024, Reed's reported revenue of $37.95 million, a concerning 15.11% decrease from the previous year. While the company managed to narrow its net loss to $13.16 million, the top-line erosion signals a struggle for market traction.

The trend continued into 2025, with the company reporting a third-quarter earnings per share (EPS) of -$0.48, a substantial miss against analyst estimates. The company's stock, trading under the ticker REED, has mirrored these struggles. As of late December 2025, the stock price hovered near its 52-week low of $2.00, having fallen over 27% in just the last 10 trading days. With a market capitalization lingering around $26 million, the company is in a precarious position.

To shore up its finances and maintain its listing, Reed's has been active. The company recently completed a $10 million public offering, uplisted to the NYSE American stock exchange, and, in October 2025, executed a 1-for-6 reverse stock split. These maneuvers provide necessary capital and runway but also underscore the urgency of the operational turnaround Cohane is now tasked with leading.

The Battle for the Beverage Aisle

While Reed's faces internal challenges, the external market presents a dual-edged sword of opportunity and intense competition. The sectors where Reed's operates are booming. The global craft soda market, valued at nearly $700 million in 2024, is projected to grow at a steady CAGR of over 4%. Similarly, the ginger drinks market, a core category for Reed's, is expected to surge from $4.15 billion in 2024 to over $7.7 billion by 2033, fueled by consumer demand for natural ingredients and ginger's perceived health benefits.

This growth is driven by a powerful consumer shift toward healthier, functional, and artisanal beverages. Millennials and younger generations are actively seeking alternatives to traditional sodas, gravitating toward products with unique flavors, natural ingredients, and functional benefits like immune support or gut health. This trend should, in theory, be a powerful tailwind for a legacy natural brand like Reed's.

However, this opportunity has not gone unnoticed. The shelves are now crowded with competitors, from small craft startups to private-label offerings and new product lines from giants like PepsiCo and Coca-Cola. To win, brands need more than a good product; they need flawless execution in distribution, pricing, and marketing. Cohane's historical strength was in building out Reed's direct-store delivery (DSD) network, a strategy that offers greater control over in-store presence. Yet, the company has more recently shifted some accounts, like Publix, to a direct model to improve margins. Cohane's new strategy will have to navigate this complex distribution landscape and prove it can drive not just placement, but velocity—the speed at which products fly off the shelves.

Wall Street's Divided Verdict

The announcement of Cohane's return has been met with a mix of optimism and cautious skepticism from market watchers. On one hand, some analysts see a clear path forward. MarketBeat, for instance, maintains a “Strong Buy” consensus rating on REED, with a price target of $10.50, suggesting a potential upside of over 300% from its current beleaguered price. This view is predicated on the belief that a seasoned operator like Cohane can right the ship and unlock the brand's latent value in a growing market.

On the other hand, a closer look at the company's financial health paints a more sobering picture. GuruFocus points to Reed's “distressed financial strength score” and significant negative margins as major red flags. StockInvest.us holds a “negative evaluation,” citing a falling trend and predicting weak short-term performance. Some perspectives suggest that bringing back a former executive, while providing stability, might also indicate a struggle to attract fresh outside talent or signal deeper, unresolved issues with sales performance that necessitate a familiar hand.

Ultimately, Cohane's success will be measured in hard numbers: revenue growth, improved margins, and a rising stock price. His mission is to transform his deep experience and stated objectives into tangible results, proving to a divided Wall Street that this prodigal son's return is not just a nostalgic reunion, but the catalyst for a genuine and lasting turnaround.