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

Reed’s, Inc. (NASDAQ: REED) (OTCBB: REEDP), 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 dominant player in the natural food channels, the IRI data affirms that our brands are now being embraced by a growing number 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.”

About Reed’s, Inc.

Reed’s, Inc. makes several brands of top selling natural sodas and beverages. Their products are sold in over 10,500 stores throughout the natural foods industry and supermarkets nationwide. Reed’s six award-winning, non-alcoholic Ginger Brews are unique in the beverage industry as they are made using fresh ginger, spices and fruits with a brewing process that predates commercial soft drinks. The Company also produces a Natural Energy Elixir and ‘Reed’s Rx,’ a Natural Ginger Nausea Relief product for the drug store and grocery retail channels. Reed’s, Inc. owns China Cola and the Virgil’s line of sodas that include the award-winning Virgil’s Root Beer as well as Virgil’s Cream Soda, Black Cherry Cream Soda, Orange Cream Soda and Real Cola. The Company has also introduced its new ‘Virgil’s Zero’ line of Stevia-sweetened diet sodas in all these popular flavors. In 2009, Reed’s acquired the Sonoma Sparkler brand and started producing Private Label natural beverages for select national chains. Other product lines include Reed’s Ginger Candies and Reed’s Ginger Ice Creams.

Reed’s products are sold internationally in Canada and Mexico, along with a small presence in Europe, the Middle East, Africa, Japan and Singapore. 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.