Reed’s, Inc. Expands Relationship With Kroger

Virgil’s Diet Root Beer, Diet Cream Soda and Orange Cream Soda to Be Added in 795 Stores

LOS ANGELES, CA–(Marketwire – February 2, 2010) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has expanded its relationship with The Kroger Co. (NYSE: KR), the nation’s largest food retailer, based in Cincinnati, Ohio.

Kroger has authorized Virgil’s Diet Root Beer, Virgil’s Diet Cream Soda and Virgil’s Orange Cream Soda. Product is expected to be in stores beginning in February. By May, Reed’s expects the new SKU’s to be rolled out into approximately 795 Kroger stores nationwide.

“In the past 6 months we have obtained 3 new soda SKU’s and 2 new candy SKU’s within The Kroger Co. stores,” commented Neal Cohane, Senior VP of Sales for Reed’s, Inc. “Virgil’s diet products being authorized in the largest supermarket chain in the US is a major milestone for the brand. Mainstream grocery is getting behind these products; and, they understand that consumers are hungry for alternatives to the traditional, artificially-sweetened sodas offered by the beverage giants.”

Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., stated, “Our sales team is doing a phenomenal job within mainstream. In 2009 our case sales to Kroger increased by 71% versus 2008, and our sales dollar volume increased by 48%. These are fantastic results, realized in what anyone would consider a very challenging time for retail.”