Reed's, Inc. Expands Relationship With Kroger

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.”

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. Recently, Reed’s added the Sonoma Sparkler brands to its line, a 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. For more information about Reed’s, please visit the company’s website at: http://www.reedsgingerbrew.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.