SOURCE: Reed's, Inc.

Reed's, Inc.

November 03, 2009 07:30 ET

Government Gets It Right This Time -- The Defense Commissary Agency (DeCA) to Provide Natural Soda Alternatives to Military Personnel, Retirees and Their Families

Reed's, Inc. Receives First Purchase Order From DeCA to Provide Reed's and Virgil's Soda to Agency Operating a Worldwide Chain of 284 Commissaries

LOS ANGELES, CA--(Marketwire - November 3, 2009) - Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has received its first purchase order from the Military Supermarket organization, the Defense Commissary Agency (DeCA), headquartered at Fort Lee, Virginia.

Reed's will initially provide 5 SKU's of Reed's and Virgil's products, including: Reed's Extra Ginger Brew, Reed's Premium Ginger Brew, Virgil's Root Beer, Virgil's Cream Soda and Virgil's Black Cherry Cream Soda.

"Reed's is extremely proud to have our products being offered for sale in the commissaries serving our military families and retirees," commented Mr. Chris Reed, Founder, Chairman and CEO of Reed's, Inc. "My Dad is a retired Army officer and early founding member of Reed's, Inc. and this sale has great personal value to us both." Chris added, "As a Military brat, I grew up shopping at the local army base commissary." He continued, "I got my first hankering for premium non-alcoholic beverages when my family was stationed in Germany. My parents would go to local wineries and I would get all natural sparkling grape juice to drink. I remember I used to think, 'Wow -- my parents are missing out on the good stuff!'" Chris ended stating, "I guess that was my first inspiration to start my own natural soda company."

In 2007, Military Commissaries sell $5.5 billion per year of groceries at 284 stores. Initial locations for distribution include: Fort Belvoir Army Base, VA (Largest Commissary in the U.S. and DeCA's top store); Fort Meade, MD; Quantico Marine Corps Base, VA; Andrews Air Force Base, MD; Ft. Meyers, VA; Pax River Naval Base, MD; Walter Reed Military Hospital, MD; Bolling Air Force Base - Washington, DC; US Naval Academy - Annapolis, MD; and, Aberdeen Proving Grounds, MD.

The Defense Commissary Agency operates a worldwide chain of 284 commissaries providing groceries to military personnel, retirees and their families in a safe and secure shopping environment. Authorized patrons purchase items at cost plus a five-percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. DeCA Shoppers save an average of more than 30 percent on their purchases compared to commercial prices. These savings are worth about $3,400 annually for a family of four.

"We have been working on securing the DeCA account for some time now," commented Neal Cohane, Senior VP of Sales and Marketing for Reed's, Inc. "Initially, we will be providing 5 SKU's of Reed's and Virgil's products to DeCA locations on the East Coast. We hope to gradually roll-out to as many of the 284 stores DeCA operates as possible."

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.

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