By: Dylan Sikes - AllPennyStocks.com News

Wednesday, April 13, 2016

Earlier today, a report from the U.S. Commerce Department showed that retail sales fell unexpectedly in the month of March. The data once again highlights the fact that growth in the U.S. economy stalled in the first quarter. A separate report showed that producer prices also dropped in the month of March. Both pieces of data indicate that consumers are being cautious when it comes to spending. This comes as a surprise considering that the labor market continues to improve. The weak data though will force the Federal Reserve to rethink the pace of its rate hike trajectory.

While weak consumer confidence is a negative for KonaRed Corp. (OTCQB:KRED), a Koloa, Hawaii-based consumer products company, the company did have a solid first-quarter on the operational front.

KonaRed, which is a pioneer of the coffee fruit category and also a manufacturer of antioxidant juices, today provided an update on its first quarter. The company said that to increase revenue, in the first quarter its executive team focused on increasing sales and expanding product lines. The company noted that these efforts are now yielding results. Highlights from the first quarter included the successful launch of the KonaRed(R) Cold Brew Coffee product line. The product officially entered the market in select stores on February 15th and has seen explosive growth.

KonaRed noted that in its very short time on the market, KonaRed Cold Brew Coffee has been accepted by more than 60 independent retailers in the San Diego and Orange County, California area and is now hitting the shelves of most major retailers in Hawaii, including Safeway, Whole Foods, Down to Earth and Foodland. Distribution deals have also been signed in the Pacific Northwest, Northern California, San Diego, Hawaii and Las Vegas. KRED expects these new distribution arrangements to lead to continued sales growth for the three varieties of its Cold Brew Coffees and will add to sales of KRED’s other products.

Kyle Redfield, President and COO at KonaRed, said that the company’s Cold Brew Coffee product line launch has been fast and furious out of the gate and the company is thrilled with the early results. Redfield further said that the product has been very well received by the retailers on the West Coast and Hawaii, and the velocity of product being sold out of those retailers is well over four times what the company normally sees for its premium juices.

Even with all the fundamental positives, shares of KRED have been downtrending since early 2014 and continue to trade at the low end of their 52-week range. A break of the long turn downtrend, along with continued positive fundamental developments would be the signs to look for as good entry signals. As of right now, with shares continuing to slip in today’s trade, the stock continues to only be a “watch list” entry, and not yet an investment contender.

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