Reed’s, Inc. Announces Third Private Label Customer
Released: 04/07/10 08:30 AM EDT

Reed's, Inc. (NASDAQ: REED) (OTCBB: REEDP), maker of the top-selling sodas in natural food stores nationwide, announced today that it has reached its third private label agreement with a major international food company. Reed’s expects to begin shipping to its third custom label client’s chain of 145 U.S.-based supermarkets later this year.

“We continue to see significant upside to our private label business, which has allowed us to tap into new sales channels with some of the largest and best known retailers in the country,” said Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “Our third private label deal with a major international food company highlights our ability to significantly grow our business by bringing creative, high-quality products to market that meet our private label clients’ exacting specifications and needs.” Mr. Reed added, “In fact, our third customer will also be picking up a number of our branded products, which reinforces the positive effect our growing private label relationships with mainstream supermarket chains are having on increasing our branded business line.”

According to a recent research report, titled “Recession, Recovery and Store Brands: What Consumers Are Saying Now,” published for the Private Label Manufacturers Association and conducted by GfK Custom Research North America, shoppers who identify themselves as ‘frequent’ buyers of store brands are at an all-time high, and some 57% say they buy private label products frequently, a figure that has been increasing and was under 55% a year ago. The research report found more than six in 10 American consumers said they plan on buying more private label as they attempt to stretch their food dollars. The full report can be retrieved at: http://www.plma.com/share/press/FOR_IMMEDIATE_RELEASE/PLMA_Recession_Recovery_and_Store_Brands.pdf

Mr. Reed concluded, “We recognize the growing trend in private label consumption, and hope to have 7 to 10 new private label customers by the end of 2010. As a result, we anticipate a record year as our financials begin to reflect the hard work we have put into this initiative. Since our private label clients have a long lead time to implementation, we expect most of the benefits will be felt in the third and fourth quarters of 2010. The strong increases in growth and profits that we expect to achieve from these accounts will allow us to further drive brand awareness and sales for our premium products and increase shareholder value as we take our business to the next level.”

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. Recently, Reed's added the Sonoma Sparkler brands to its line, a celebration drink with an established customer base. 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: http://www.reedsgingerbrew.com or call 800-99-REEDS.

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SAFE HARBOR STATEMENT

Some portions of this press release, particularly those describing Reed's goals and strategies, contain "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words, such as "expects," "should," "believes," "anticipates" or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. While Reed's is working to achieve those goals and strategies, actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. These risks and uncertainties include difficulty in marketing its products and services, maintaining and protecting brand recognition, the need for significant capital, dependence on third party distributors, dependence on third party brewers, increasing costs of fuel and freight, protection of intellectual property, competition and other factors, any of which could have an adverse effect on the business plans of Reed's, its reputation in the industry or its expected financial return from operations and results of operations. In light of significant risks and uncertainties inherent in forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by Reed's that they will achieve such forward-looking statements. For further details and a discussion of these and other risks and uncertainties, please see our most recent reports on Form 10-KSB and Form 10-Q, as filed with the Securities and Exchange Commission, as they may be amended from time to time. Reed's undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.

Contacts:

<fc:contacts xmlns="http://www.w3.org/1999/xhtml"><b>Investor Relations Contact:</b><br/>IRTH Communications, LLC<br/>Mr. Andrew Haag, Managing Partner<br/>+1-888-825-6456<br/><a href="mailto:reed@irthcommunications.com">reed@irthcommunications.com</a><br/>Website: <a href="http://cts.businesswire.com/ct/CT?id=smartlink&amp;url=http%3A%2F%2Fwww.irthcommunications.com&amp;esheet=6240289&amp;lan=en_US&amp;anchor=www.irthcommunications.com&amp;index=9&amp;md5=89846b0b5cef0e788caa38acc323ab08">www.irthcommunications.com</a></fc:contacts>