Reed’s Inc. Issues Statement Regarding FDA Inquiry

Reed’s Inc., maker of a variety of natural sodas and non-alcoholic ginger beers, has changed the wording on labels of Reed’s Natural Energy Elixir and Reed’s Nausea Relief in response to a Food & Drug Administration (FDA) warning letter about the two products, the company said in a statement today.

Reed’s made the changes in response to a May 2011 FDA letter stating that the company was in violation of multiple manufacturing and labeling requirements pertaining to dietary supplements.

Here is Reed’s statement in full:

LOS ANGELES, CA–(Marketwire – Aug 25, 2011) – Reed’s, Inc. (NASDAQ: REED) received a letter from the Irvine office of the Food and Drug Administration (FDA) alerting the company to concerns about the language describing the ingredients of two of its non-mainstream products. While the language and descriptions were not misleading or inaccurate, the FDA raised questions regarding the proper identification required in labeling. The Company believes that the FDA inquiry will not have a material impact on its business.

At no point has the FDA raised any questions or concerns about the safety of Reed’s products. The FDA concerns relate mostly to Reed’s Natural Energy Elixir and Reed’s Nausea Relief, and do not relate to any of Reed’s or Virgil’s glass-bottled natural carbonated soft drinks. Reed’s is proactively and openly addressing the FDA’s labeling concerns, and has taken measures to immediately correct the FDA concerns. At this point, Reed’s is awaiting a response from the FDA on the proposed corrective measures.

“The FDA seems to be increasing pressure to improve labeling and ingredient descriptions,” stated Terry Foucaut, Reed’s Chief Operating Officer. “We applaud the push toward increased disclosure. We have enthusiastically corrected these minor points in our packaging, and we look forward to closing this matter with the FDA as soon as they are able to review our responses.”

About Reed’s, Inc.

Reed’s, Inc. makes the top selling natural sodas in the natural foods industry sold in over 10,500 natural food markets and supermarkets nationwide. 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. 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. In 2009, Reed’s started producing private label natural beverages for select national chains.

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