SOURCE: Reed's, Inc.

Reed's, Inc.

October 05, 2009 09:15 ET

Reed's, Inc. Gears Up for Increased Business

Company Doubles Production Capability of Southern California Facility

LOS ANGELES, CA--(Marketwire - October 5, 2009) - Reed's, Inc. (NASDAQ: REED) maker of the top-selling sodas in natural food stores nationwide, announced that it has completed a retrofit of its Southern California facility in anticipation of new business it expects to receive from private label opportunities. The retrofit of the facility is estimated to double the line speed and the production output capabilities of the company's bottling plant for the private label products the company anticipates being run.

Chris Reed, Founder and CEO of Reed's, Inc., stated, "We are seeing strong interest for the private label products that we are offering to major retailers. Based on this, we felt that we needed to prepare for the additional business." He added, "This retrofit increases our ability to drive the private label business. More specifically it will allow us to generate additional profits of roughly $7.5 million per year when it is fully utilized." Reed went on to say, "Our production facility's unique product and packaging capabilities allow us to make a comparable margin to our existing brands with private label. For the most part, we're not competing with our own brands with the new private label business. Our current plan is to finance the growth of our branded business with the private label profits."

Reed's announced last week that it is in discussions with 25 national chain store retailers to provide them with private label products. These new products are not competitive with Reed's current brands. The company also stated that 2 major retailers expect to begin shipments shortly and has quality control audits starting with a third major retailer.

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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