Reed's, Inc. Natural Energy Elixir Gets Boost From Cost Plus World Markets and BevNET

LOS ANGELES, CA–(Marketwire – December 17, 2009) – Reed’s, Inc. (NASDAQ: REED) (NASDAQ: REEDR), maker of the top-selling sodas in natural food stores nationwide, recently revealed that its highly rated Natural Energy Elixir has been picked up in 280 Cost Plus World Markets stores. The product is also available now at many Bristol Farms and Mother’s Markets and Mother’s Markets locations.

A natural way to boost one’s health and energy, Reed’s Natural Energy Elixir is a next generation energy drink containing Ginger, Camu Camu, Green Tea, Goji, Acai, Ginseng, L-Theanine and B Vitamins. The product is currently being sold predominantly in natural foods and mainstream markets in 10.5 oz single-use cans.

Recent reviews have been solid for the Natural Energy Elixir with BevNET, the beverage industry’s source for product reviews and news, stating, “If you like ginger beer, then chances are you’ll love Reed’s Natural Energy Elixir…The resulting mixture has a full body and a yin and yang contrast of ginger heat and tart and sweet fruit flavors. It’s definitely one of the more unique blends of flavor that we’ve seen in an energy drink — and an enjoyable one as a result.”

The Lady Riposter, a self confessed foodie blogger, also stated about Natural Energy Elixir, “It boosted my energy level but didn’t make me feel like a jittery squirrel. It tasted really good too!…I really enjoyed it.”

Christopher Reed, Founder Chairman and CEO of Reed’s, Inc., remarked, “Our Natural Energy Elixir is a unique product, and we knew that once customers tried it that it would be a strong seller. It is the energy drink for the rest of us that want something healthy and good tasting.” He added, “We were talking with Cost Plus World Markets about a new line of custom products for their stores and they said, ‘Let’s put the Energy Elixir in the coolers at our stores.’ So we ended up with both pieces of business and are proud to be working more closely with a great operation like Cost Plus World Markets.”

As part of its latest consumer survey into the market, market analyst firm Mintel International Group LTD reported that, “In the five years between 2008 and 2003, 24 million more Americans were drinking bottled water with 11 million additional consumers turned to sports drinks.” Younger consumers in particular were picked by the analyst as, “Playing a major role in shifting demand as energy drinks consumption was also found to have doubled by 2008 to 34.5 million, from just about 17.4 million in 2003.”

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.