Reed's Growth in Mainstream Markets Four Times the Average for the Premium Soft Drink Category
Released: 07/07/09 09:00 AM EDT
Company Is Driving Volume and Market Share With Reed's and Virgil's Brands Growing 31% Year Over Year Versus the Premium Soft Drink Category, Which Grew at 5.5%

LOS ANGELES, CA -- (Marketwire) -- 07/07/09 -- Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that according to industry data, Reed's and Virgil's are increasing their market share at a rate of over 450% greater than the overall Premium Soft Drink category in the U.S. The category is referred to as the 'Premium Select' category.

"Reed's & Virgil's are outpacing the entire U.S. Carbonated Soft Drink category which is only growing at +1.4% annually and the premium soft drink category which grew at 5.5% over the last twelve months," commented Mr. Chris Reed, Founder and CEO of Reed's, Inc. "The significance of these numbers is that we are getting this kind of growth while, for the most part, our products are being sold in the slower trafficked area of the store, the Natural & Specialty section, while most other premium brands are selling in the more heavily trafficked 'main' beverage aisle."

"Our recent product introductions are fitting nicely with consumer preferences; these include our new diet Virgil's product line, our new Virgil's Orange Cream Soda and our new Reed's Natural Energy Elixir," added Mr. Reed. "In addition, we recently introduced new high gloss 12-pack cartons for our Reed's Extra Ginger Brew and our Virgil's Root Beer. We are hoping these new formats and new products will increase our competitive edge in the premium soft drink category. Our sales force continues to leverage our success and push for our products to be moved into the higher traffic mainstream beverage aisles of major supermarket chain stores."

About Reed's, Inc.

Reed's, Inc. makes the top-selling sodas sold 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: 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.

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