Reed's, Inc. Increases Mainstream Grocery Sales 37% in 2008

LOS ANGELES, CA–(Marketwire – February 19, 2009) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, recorded a 37% increase in sales in mainstream supermarkets in 2008.

“Our new ‘Partner-with-Purpose’ marketing program initiated in early 2008 is producing tremendous results for us in our non-natural foods supermarket accounts. Our sales team has worked hard to get Reed’s Ginger Brew and Virgil’s Root Beer placed into mainstream soda and beverage aisles. We’ve had some major wins this past year, and as a result Reed’s is one of the fastest growing premium beverage companies in mainstream supermarkets,” commented Neal Cohane, Senior VP of Sales, National Accounts. “We will continue to work closely with our customers, implementing the ‘Partner-with-Purpose’ marketing plans which include in-store sampling campaigns, weekly ad/circular participation and additional promotional efforts for the Reed’s and Virgil’s brands,” added Cohane.

Chris Reed, Founder and CEO of Reed’s, Inc., stated, “We’re extremely pleased with Neal Cohane’s sales team results. Their performance, given the state of the overall economy, has been outstanding. Neal’s ‘big picture’ perspective, having come from management at Pepsi, has been extremely beneficial to our company.” He added, “While we don’t expect to have the top 4 selling soft drinks in mainstream as we do in natural foods, our early results show that there is a passion developing for our natural beverages in this segment as well.”

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.