Government Gets It Right This Time — The Defense Commissary Agency (DeCA) to Provide Natural Soda Alternatives to Military Personnel, Retirees and Their Families

Reed’s, Inc. Receives First Purchase Order From DeCA to Provide Reed’s and Virgil’s Soda to Agency Operating a Worldwide Chain of 284 Commissaries

LOS ANGELES, CA–(Marketwire – November 3, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has received its first purchase order from the Military Supermarket organization, the Defense Commissary Agency (DeCA), headquartered at Fort Lee, Virginia.
Reed’s will initially provide 5 SKU’s of Reed’s and Virgil’s products, including: Reed’s Extra Ginger Brew, Reed’s Premium Ginger Brew, Virgil’s Root Beer, Virgil’s Cream Soda and Virgil’s Black Cherry Cream Soda.

“Reed’s is extremely proud to have our products being offered for sale in the commissaries serving our military families and retirees,” commented Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “My Dad is a retired Army officer and early founding member of Reed’s, Inc. and this sale has great personal value to us both.” Chris added, “As a Military brat, I grew up shopping at the local army base commissary.” He continued, “I got my first hankering for premium non-alcoholic beverages when my family was stationed in Germany. My parents would go to local wineries and I would get all natural sparkling grape juice to drink. I remember I used to think, ‘Wow — my parents are missing out on the good stuff!'” Chris ended stating, “I guess that was my first inspiration to start my own natural soda company.”

In 2007, Military Commissaries sell $5.5 billion per year of groceries at 284 stores. Initial locations for distribution include: Fort Belvoir Army Base, VA (Largest Commissary in the U.S. and DeCA’s top store); Fort Meade, MD; Quantico Marine Corps Base, VA; Andrews Air Force Base, MD; Ft. Meyers, VA; Pax River Naval Base, MD; Walter Reed Military Hospital, MD; Bolling Air Force Base – Washington, DC; US Naval Academy – Annapolis, MD; and, Aberdeen Proving Grounds, MD.

The Defense Commissary Agency operates a worldwide chain of 284 commissaries providing groceries to military personnel, retirees and their families in a safe and secure shopping environment. Authorized patrons purchase items at cost plus a five-percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. DeCA Shoppers save an average of more than 30 percent on their purchases compared to commercial prices. These savings are worth about $3,400 annually for a family of four.

“We have been working on securing the DeCA account for some time now,” commented Neal Cohane, Senior VP of Sales and Marketing for Reed’s, Inc. “Initially, we will be providing 5 SKU’s of Reed’s and Virgil’s products to DeCA locations on the East Coast. We hope to gradually roll-out to as many of the 284 stores DeCA operates as possible.”