Reeds Inc. Expands National Presence of New Culture Club Kombucha

Our initial strategy was to launch on the west coast only and gain consumer, distributor and retailer response. Due to overwhelming positive feedback, we have now entered into distribution centers throughout the country, including United Natural Foods and their twelve distribution centers, Kehe Natural Food Distributors and Nature’s Best Distribution. Additionally, the Culture Club Kombucha launch has sparked interest with new specialty distributors and existing DSD network distribution. This successful national rollout to date has resulted in placement in over 1,200 natural food stores with momentum just starting to build. Initial chain authorizations include select Whole Foods regions throughout the US, Fairway Market, The Fresh Market, Lassen’s, Earth Fare, and Bristol Farms, with many more announcements to follow.

Chris Reed, founder and CEO, states, “The launch of our new Culture Club Kombucha has exceeded our expectations. According to recent syndicated data, the functional juices and Kombucha category has surpassed $609 million and is the fastest growing category at +35% retail dollar growth. In our early store-by-store analysis, we are finding that our four Kombucha flavors are tracking to outsell our top four Reed’s and Virgil’s SKUs. Consumer and retailer feedback has been extremely positive to date and we intend to capitalize on the feedback and the opportunity to build Culture Club Kombucha into a national, dominant player within this fast-expanding category.”

Reed’s, Inc. makes the top-selling natural sodas in the natural foods industry sold in over 13,000 natural food markets and supermarkets nationwide. 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. 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. In 2009, Reed’s started producing private label natural beverages for select national chains. Reed’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains.

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-K 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.