Reed’s, Inc. in Discussions With 25 National Chain Retailers Regarding Private Label Opportunities

LOS ANGELES, CA–(Marketwire – September 30, 2009) – Reed’s, Inc. (NASDAQ: REED) announced today that it is in active discussions with 25 national chain store retailers regarding producing private label products for them. Reed’s had previously announced its intention to private label products that are non-competitive to its existing lines of business.

“Reed’s is currently in talks with 25 plus large chain retailers to help with their private label needs,” commented Mr. Chris Reed, Founder and CEO of Reed’s, Inc. “We are extremely pleased to have already passed our first Good Manufacturing Practices HACCP audit with a major retailer and are moving forward with Private label for two major retailers. We expect to start shipping shortly.” Mr. Reed went on to state that, “We estimate that these two initial accounts, that we have been approved for, could represent between $2.5 and $3 million per year in additional business for the company.”

“Our goal is to double our business in the next 12-18 months using Private Label as a primary tool. An unexpected benefit of our new private label business is that by strengthening our relationships with our supermarket customers by filling their private label needs, we are getting a surprising amount of new branded business.”

Mr. Reed added, “With the increased cash flow and improvement in gross profits, Reed’s should be in a position to self-fund growth in our core brands. Gross profits from Private Label business will be used to fuel marketing, advertising and promotions of our brands. Expansion of our core brands is still our number one long-term focus.”

About Reed’s, Inc.

Reed’s, Inc. makes the top selling sodas in natural food markets nationwide and is currently selling in 10,500 supermarkets in natural foods and mainstream. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. In addition, the Company owns the top selling root beer line in natural foods, the Virgil’s Root Beer product line, and the top selling cola line in natural foods, the China Cola product line. Other product lines include: Reed’s Ginger Candies and Reed’s Ginger Ice Creams.

Reed’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada. For more information about Reed’s, please visit the company’s website at: or call 800-99-REEDS.

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