Reed's Addresses Growing Market for Naturally Sweetened Diet Sodas With New Improved Virgil's Diet Line

LOS ANGELES, CA–(Marketwire – September 15, 2010) –  Reed’s, Inc. (NASDAQ: REED) (OTCBB: REEDP), maker of the top-selling sodas in natural food stores nationwide, announced today that it will address the growing market for naturally sweetened diet sodas with new and improved flavor combinations for its Virgil’s diet line that uses Stevia to add natural sweetness as well as a new packaging design.

“Reed’s is committed to using only 100% all natural ingredients in all of our products, including our improved Virgil’s diet line that has a spectacular new look and taste,” stated Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. “The new flavor combinations in our Virgil’s diet sodas build on the reputation of our original award-winning Virgil’s line and use Stevia, a natural, herb-based zero calorie sweetener, to create an all natural premium beverage that is refreshing and delicious. Our current Virgil’s diet line is growing 70%-plus year over year. We anticipate an acceleration of sales with the new look and formulations.” 

While the traditional carbonated soda category has faced headwinds on health, wellness, and obesity concerns, the diet soda market has performed better as the market has shifted to drinks with benefits that appeal to health conscious consumers. Low calorie diet cola sales increased 2% reaching almost $4 billion in sales for the one-year period ended Jan. 23, 2010, compared to a 1.6% increase for regular cola sales.* The low-calorie beverage segment continues to grow as consumers worry about nutritional issues and demand healthier options.

Added Mr. Reed, “Consumers are focusing more and more on the origins of the food and drinks they buy, and wanting to know what their food contains. Stevia works great with the traditional spices that we use to brew our Virgil’s line. We’re thrilled to offer dieters our Virgil’s award-winning taste and a healthy alternative to the artificial chemical sweeteners that are being used in many other diet sodas today.”

For more information on Reed’s award-winning line of all natural brewed sodas, please visit: www.reedsinc.com.

*SOURCE: The Nielsen Co., Schaumburg, Ill., food, drug and mass merchandise outlets including Wal-Mart for the 52 weeks ending Jan. 23, 2010. 

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 All Natural Ginger Nausea Relief product for the over-the-counter stomach aisle for all retail channels 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.reedsinc.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.