KonaRed revenue soars due to cold-brew coffee

A maker of bottled cold-brew Hawaii coffees that got its start on Kauai more than tripled its sales in the first quarter, but expenses also rose and contributed to a bigger financial loss for the company.

California-based KonaRed Corp. said revenue soared to $590,065 in the January-March period from $149,488 a year earlier.

Yet higher expenses resulted in a loss of $1.1 million in the recent quarter, up from a $818,022 loss in the same quarter last year.

The company, which was established in 2008 to make “superfruit” juice drinks made from the red fruit surrounding coffee beans, said sales growth was the result of efforts last year to build a distribution network for its bottled coffees that it launched last year and represented 80 percent of sales in the recent quarter.

KonaRed noted that sales in April were $323,000.

“We have made great strides with the distribution and popularity of our award winning (ready-to-drink) cold brew coffee beverages,” KonaRed President and Chief Operating Officer Kyle Redfield said in a statement Thursday a day after financial details for the quarter were released. “Based on growth in same store sales, expanding distribution and continued new product innovation, we are building momentum and foresee a very positive year.”

During the first quarter KonaRed continued to conserve cash with reduced advertising and marketing expenses that dropped to $41,593 from $105,449 a year earlier. The company also issued several million shares of stock to reduce its debt and raise investment capital to keep operating.

The company, which has accumulated a $24.5 million loss since inception, said it received a $100,000 loan from a shareholder, sold $242,500 worth of stock and issued stock to a lender to satisfy $327,664 of debt in the first quarter.

The price for KonaRed stock was unmoved by the financial results and company comments. Shares closed each day this week at about 7 cents through Thursday.