Reed’s, Inc. Brands Significantly Outperform the Carbonated Soft Drinks (CSD) Category in Recent Supermarket Report

Los Angeles, California, March 7, 2011 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News), maker of the top-selling sodas in natural food stores nationwide, announced today that its brands continue to significantly outperform other carbonated soft drinks (CSD) in supermarkets, according to IRI syndicated data, a leading provider of data and market research for the consumer products industry.

While retail dollar sales for the total CSD category grew just 0.4% in the 26 weeks ending February 13, 2011, Reed’s and Virgil’s brands were top performers with a combined 26.4% growth. Virgil’s was the fastest growing of the top ten premium CSD brands with 34.1% growth, with Reed’s number two, growing at 20.8% during this period. Unit sales for Virgil’s and Reed’s were as impressive, with growth of 40.5% and 20.3% respectively. According to IRI data, combined Reed’s/Virgil’s is currently the number six player within the Premium Bottle CSD category in mainstream grocery and is on track to surpass some key competition by the end of 2011. Key brands in the premium CSD category include IBC, Stewarts, Jones, Izze, Henry Weinhard and Boylan’s.

“We’re seeing steady growth of our brands in mainstream supermarkets,” stated Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “We feel that we are still at the beginning of our potential in mainstream supermarkets but already this represents a significant part of our sales.”

Neal Cohane, Senior Vice President of Sales and Marketing for Reed’s, Inc., said, “The Reed’s national sales team is focused and motivated to make Reed’s and Virgil’s the #1 Premium CSD in the U.S. While Reed’s and Virgil’s brands have for years been the dominate player in the natural food channels, the IRI data affirms that our brands are now being embraced by a growing numbers of mainstream shoppers. Our strategy is to continue to drive growth within natural grocery stores, while accelerating growth in mainstream supermarkets. As we continue to close distribution voids in grocery stores across the US and Canada, we expect to remain one of the fastest growing brands in the CSD category.”