Reed's, Inc. Announces First Private Label Customer Doubles Line From Two to Four Products

LOS ANGELES, CA–(Marketwire – October 20, 2009) – Reed’s, Inc. (NASDAQ: REED) announced today that its first private label customer has doubled the line of products Reed’s will produce for them from two to four. In a prior release Reed’s mentioned it was in active discussions with 25 national chain store retailers regarding producing private label products for them.

Chris Reed, Founder and CEO of Reed’s, Inc., commented, “We are a proven premium beverage company known for making the best natural sodas on the market today. Expanding our offering in some of the largest mainstream supermarket market chains in the nation seems like a natural for us. From these efforts customers are beginning to see how our creative team can bring them high quality products to meet their private label needs.” Mr. Reed added, “We are highly confident that this is going to lead to strong growth and increased profits.”

Mr. Reed concluded, “The increase in gross profits we anticipate should put us in a strong position to self-fund growth of our branded lines and fuel marketing, advertising and promotions. The end goal is increased shareholder value through increased sales, profits and brand awareness with the least possible dilution to shareholders. Reed’s, Inc. needs this bulking up to add muscle to its brands.”

About Reed’s, Inc.

Reed’s, Inc. makes the top selling sodas 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: or call 800-99-REEDS.

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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.