Reed’s, Inc. Announces Distribution Agreement With Specialty Beverage of Virginia
Released: 05/20/10 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 a distribution agreement with Specialty Beverage of Virginia, an affiliate of L. Knife & Sons Co. Specialty Beverage is a direct store distributor in the state of Virginia for some of the best craft brews in the United States, servicing all channels of business.

Christopher Reed, Founder and CEO of Reed’s, Inc., stated, “Specialty Beverage of Virginia is known for working with some of the finest specialty import and local independent craft brewers. This is a great fit for Reed’s and we are excited to partner with them and further develop our brand in Virginia and the Southeast, one of our most important markets, and one of the fastest growing markets in the U.S.”

Eddie Pearson, Reed’s VP of Sales Southern Region, commented, “Specialty Beverage of Virginia is unique in working with some of the best known brewers in the world and is at the forefront of understanding the brewed beverage marketplace and consumers’ tastes for natural and premium products such as Reed’s. They are committed to customer service and satisfaction and becoming the preeminent brewed beverage distributor in Virginia. We are excited to be working with them in this high growth market.”

Neal Cohane, Reed’s Senior VP of Sales and Marketing, stated, “We continue our thoughtful and methodical ‘build out’ of distribution across the U.S. We are extremely excited about this distribution opportunity as we move south. No other beverage organization of Reed’s size in the U.S. works as efficiently and intelligently as our sales team. We will not stop expanding distribution until Reed’s & Virgil’s is available in every retail channel; grocery, c-store, drug, mass, club, and on premise. Opportunities for our brands are endless.”

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. In 2009, Reed’s started producing Private Label natural beverages for select national chains. 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. Recently, Reed's introduced its ‘Reed’s Rx’ line of ginger-based nausea relief products for the drug store market and acquired the Sonoma Sparkler brand, a sparkling juice 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, as well as through private label relationships with major supermarket chains. 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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About Specialty Beverage of Virginia

Founded in 1991 by Bobby Roberts, Specialty Beverage of Virginia has grown to become one of the finest and most respected craft beer and wine distributors in the southeast. Representing more than 100 suppliers throughout Virginia, Specialty prides itself in being able to introduce a world class selection of beers and wines to retailers statewide. Specialty Beverage is an affiliate of the L. Knife & Son Companies. Additional information on Specialty Beverage can be found at: http://greatbrewers.com/specialty-beverage-virginia.

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:

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