Category Archives: REEDS, Inc. REED

REEDS, Inc. engages in the development, manufacture, marketing, and sale of New Age beverages, as well as candies and ice creams. Its New Age beverages category includes natural soda, fruit juices and fruit drinks, ready-to-drink teas, sports drinks, and water. The company sells and distributes its products, through natural and specialty food distributors, primarily to upscale gourmet and natural food stores, and supermarket chains in the United States and Canada. REEDS was founded by Christopher J. Reed in 1987. The company, formerly known as Original Beverage Corporation, changed its name to REEDS, Inc. in 2001. REEDS, Inc. is based in Los Angeles, California.

Reed’s, Inc. (REED) Signs Distribution Agreement with Specialty Beverage of Virginia

May 20, 2010

This morning before the opening bell, Reed’s, Inc., maker of the top-selling sodas in natural food stores nationwide, announced that it has entered into a distribution agreement with Specialty Beverage of Virginia, an affiliate of L. Knife & Sons Co. A direct store distributor in the state of Virginia, Specialty Beverage’s portfolio includes some of the best craft brews in the United States, servicing all channels of business.

Christopher Reed, Founder and CEO of Reed’s, Inc., stated, “Specialty Beverage of Virginia is known for working with some of the finest specialty import and local independent craft brewers. This is a great fit for Reed’s and we are excited to partner with them and further develop our brand in Virginia and the Southeast, one of our most important markets, and one of the fastest growing markets in the U.S.”

Eddie Pearson, Reed’s VP of Sales Southern Region, commented, “Specialty Beverage of Virginia is unique in working with some of the best known brewers in the world and is at the forefront of understanding the brewed beverage marketplace and consumers’ tastes for natural and premium products such as Reed’s. They are committed to customer service and satisfaction and becoming the preeminent brewed beverage distributor in Virginia. We are excited to be working with them in this high growth market.”

Neal Cohane, Reed’s Senior VP of Sales and Marketing added, “We continue our thoughtful and methodical ‘build out’ of distribution across the U.S. We are extremely excited about this distribution opportunity as we move south. No other beverage organization of Reed’s size in the U.S. works as efficiently and intelligently as our sales team. We will not stop expanding distribution until Reed’s & Virgil’s is available in every retail channel; grocery, c-store, drug, mass, club, and on premise. Opportunities for our brands are endless.”

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Reed’s, Inc. (REED) Announces Expansion into 196 Stores in Eight Southern States

April 23, 2010

Reed’s, Inc., a maker of top-selling sodas in more than 10,500 supermarkets and natural food stores nationwide, recently announced that the company has expanded its product placement into Harris Teeter Food Markets, which operates 196 stores in high-income urban areas throughout the East Coast and the Southern United States.

Harris Teeter operates stores in eight states, including North Carolina, South Carolina, Virginia, Georgia, Tennessee, Florida, Maryland and Delaware. Under the terms of the agreement, Harris Teeter will immediately begin carrying three SKUs of Reed’s Ginger Brews and three SKUs of Virgil’s branded products.

Christopher Reed, founder and chief executive officer of Reed’s, Inc., stated, “Harris Teeter is an upscale, cutting-edge retailer that is a great fit for our brands. As a leading retailer with a strong commitment to natural and organic product offerings across their regions, Harris Teeter lends an incredible opportunity to develop Reed’s and Virgil’s brand awareness in the greater Southern mainstream market.”

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Reed’s, Inc. (REED) Adds a Third Major Private Label Customer

April 7, 2010

Reed’s, Inc., as anyone who has had one of their signature beverages knows, prides itself on using the most nutrient-rich and wholesome organics to create wonderful elixirs of all sorts through skillful employment of the best traditional/old-world methodologies and modern science.

The Company announced today a sign of continued growth and success with the addition of a third private label agreement, which calls for REED to begin shipping product to all 145 of the major, as yet undisclosed, international food company’s US-based supermarkets.

Widely consumed goods like beverages typically perform well across market fluctuations, and the US penchant for specialty beverages adds major play to the curvature of this trend.

As a recent GfK Custom Research North America report – prepared for the Private Label Manufacturers Association and entitled “Recession, Recovery and Store Brands: What Consumers Are Saying Now” – clearly indicates, there is a rising propensity for US consumers to purchase private label brands, particularly in this segment, which could spell big numbers for REED shareholders.

According to the report, private label consumption is up 4-5% in the last year alone, with 6 in 10 consumers obviously intent on weathering the economic storm and stretching their dollar via increased consumption of private label brands.

Founder, CEO and Chairman of REED, Chris Reed, commented on the growth potential in the private label segment and noted that it has opened up “new sales channels with some of the largest and best known retailers in the country”, citing the new deal with yet another major food company as evidence of the Company’s consistent ability to grow the business efficiently.

Reed went on to extol the creativity and extremely focused attitude towards high-quality ingredients and a final product, which REED maintains, as the key to succeeding with private label clients, and he suggested that this is also why the new agreement will include a number of the Company’s branded products – clear indication that the strong private label relationships with mainstream supermarkets is passively up-selling the branded line of products as well.

As the top-selling soda in natural food stores across the country, and with market penetration consisting of some 10,500 supermarkets, REED has ample breathing room and reason to be proud of its six award-winning, non-alcoholic Ginger Brews, which are unchallenged in their category.

Because they are brewed using a traditional process developed long before modern commercial soft drink production techniques, and not manufactured, and because they use only the finest fresh ginger, fruit and spices, Reed’s Ginger Brews are a truly standalone beverage experience.

Reed’s also has the No.1 root beer in natural foods with the Virgil’s Root Beer line of products; the No.1 cola with their China Cola, designed by a master Chinese herbalist; and the beloved Sonoma Sparkler, as well as a line of specialty confections and ice creams.

Mr. Reed concluded by projecting 2010 to be a record financial year, with the addition of 7-10 new private label customers, organically growing brand identity, and market saturation, with the majority of the bang from all of the Company’s invested buck coming in the 3Q-4Q 2010 period.

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Reed’s, Inc. (REED) Announces Commencement of Production and Shipment of Its New Ginger-Based Remedy for Nausea and Motion Sickness

March 3, 2010

Reed’s, Inc., a manufacturer and distributor of top-selling sodas in more than 10,500 natural food markets and supermarkets nationwide, recently announced that the company has begun production and shipment of its new ginger-based remedy for nausea and motion sickness. The company’s new “Reed’s Rx” Natural Ginger Nausea Relief has been shipped to drugstores nationwide in convenient four-packs of 5.5-ounce cans containing a brew of fresh ginger, honey, pineapple juice, and lemon and lime juices.

In addition to beginning distribution, Reed’s Inc. has placed its first advertisements for the “Reed’s Rx” product in drugstore trade publications. The company’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada. In addition to the new remedy, the company owns the top-selling root beer line in natural foods, the highly popular China Cola product line, and an array of various drinks, candies and ice creams that incorporate the use of fresh ginger.

Chris Reed, founder, chairman and chief executive officer of Reed’s, Inc., stated, “We have received many testimonials over the years from people who have used our products for motion sickness, morning sickness and nausea. In addition, ginger has a very long history of use as a remedy for nausea. It was documented to be used by the early Roman Empire in 1000 B.C. and shows up in early medical texts dating from 1600 B.C.” Mr. Reed continued, “As a result, we decided to create a new line of products based on the Reed’s Ginger Brew brand and geared for the drug store trade under the ‘Reed’s Rx’ brand.”

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Reed’s, Inc. (REED) Announces Addition of New Business Line and Expansion of Revenue Opportunities

July 28, 2009

Reed’s, Inc. announced this morning that it has established a new line of business that will utilize the company’s existing bottling operation to discover opportunities that are non-competitive with current product lines. The company believes the new business venture will substantially increase revenues and improve gross profit.

“We have increased efficiencies and created additional available line time within our brewing and bottling operation,” stated Mr. Chris Reed, Founder and CEO of Reed’s, Inc. “In essence, we’ve tooled up our plant to a point where we have created about three to four thousand additional hours a year of line time to dedicate to the private label business. This could double the current size of our company.”

Mr. Reed continued, “Our initial outreach to the larger supermarket chains in the US has been met with significant interest. Our plant has unique packaging capabilities that, up until now, were only found outside North America. This gives us a competitive edge when bidding these specialty beverage products. We are not offering our proprietary formulas for private label but, are instead, developing non-competing flavors.”

“Upon full implementation, this new business should significantly increase our revenues, and gross profit,” concluded Mr. Reed. “We are committed to exploring every area of potential growth while pursuing the least dilution for shareholders. The additional revenues and cash flow from this initiative could self-fund our growth and brand development. We feel that this new business should allow us to drive expanded marketing and awareness of our brands.”

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Reed’s, Inc. (REED) Engages Boutique Investment Bank to Identify Strategic Partnership and Investment Opportunities

July 21, 2009

Reed’s, Inc. announced earlier today that it has engaged the services of San Francisco-based Partnership Capital Growth Advisors (PCGA). As terms of the agreement, PCGA will introduce the company to potential strategic partners within the beverage industry.

Chris Reed, Founder and CEO of Reed’s, Inc., commented, “Partnership Capital Growth is ideally suited to assist Reed’s with identifying opportunities for strategic partnerships and investment to help bring the company to the next level. I have first-hand knowledge of PCGA’s expertise in this space and I am confident that they can introduce Reed’s to companies that will synergistically help us to grow our brands and distribution.”

Brent Knudsen, Founder and Managing Partner of PCGA, stated, “Reed’s is an exciting opportunity with the leading soda brands in the high growth natural food channel, and a perfect fit for our focus on identifying and concluding strong partnerships to continue and accelerate growth.”

Mr. Reed added, “Transactions of similar companies in our space, like Izze and Honest Tea, have had valuations of 3 times and 5 times sales respectively. These deals were done in a more robust economy; however, more recent private transactions in our space have still been in the 2 to 3 times sales valuation range. Our public stock is currently trading at one times sales. We would require valuations more in line with the current private transactions in our space from interested parties.”

“We’re looking for a partner who can bring resources, distribution, and production buying power to our brands,” continued Mr. Reed. “We are the top-selling soft drinks in one industry in the US, the natural food industry. With the right partner, we expect that we can be a top-seller in mainstream, too.”

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Reed’s Inc. (REED) Announces Expansion from 50 Stores to 154 Weis Market Stores

July 14, 2009

Reed’s, Inc. announced this morning that it has expanded its relationship with Weis Markets (NYSE: WMK). The company’s products will now be sold in all 154 Weis stores and will include an additional product. Weis Markets is a regional grocery chain headquartered in Sunbury, PA.

“Weis Markets is an important regional grocery retailer for Reed’s,” commented Neal Cohane, Senior VP of Sales & Marketing. “The most important element of this expanded relationship is the movement of the product from the ‘specialty/natural’ aisle into the main beverage aisle. This will give Reed’s and Virgil’s substantial increased visibility and competitive pricing.”

Mr. David Hepfinger, President & CEO of Weis Markets stated, “We are extremely excited about expanding our offerings of the Reed’s & Virgil’s brands to all 154 Weis locations. We are pleased to pass on tremendous savings on this great, all natural brand to our loyal customers.”

Mr. Chris Reed, Founder and CEO of Reed’s, Inc. added, “Weis Markets represents the type of relationships we are trying to build in the mainstream grocery marketplace. We have negotiated the movement from a slower traffic area of the store to the fast-paced mainstream beverage aisle. We have also negotiated lower retails by getting all the parties working together to maximize brand volumes and profits. We expect to see a significant increase in sales from Weis Markets, similar to the other supermarket chains where we have this enhanced relationship.”

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Reed’s, Inc. (REED) Partners with Maletis Beverage

April 28, 2009

Reed’s, Inc. announced this morning that it has partnered with Portland, Orego-based Maletis Beverage, an Oregon based distributor that sells a variety of Domestic, Imported and Micro-beers. The distributor’s non-alcoholic portfolio includes Rockstar, Crystal Geyser, Newman’s Own and now the Reed’s and Virgil’s product line up.

Neal Cohane, Senior VP of Sales & Marketing for Reed’s commented, “Partnering with Maletis Beverage is a tremendous opportunity for Reed’s. Maletis has ubiquitous reach across one of the largest metropolitan areas in the Pacific Northwest. Growing our brand in mainstream is a key strategy for us, and partnerships with distributors like Maletis will help Reed’s and Virgil’s gain access into distribution channels and accounts where our brands have not traditionally been found.”

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Reed’s, Inc. (REED) Prepares to Ship its Natural Energy Drink

April 23, 2009

Today, Reed’s, Inc., maker of the top-selling sodas in natural food stores nationwide, announced that it has released its all new Reed’s Natural Energy Elixir, a functional beverage containing Ginger, Camu Camu, Green Tea, Jiaogulin, Goji, Acai, Ginseng, L-Theanine and B Vitamins. The unique energy drink will be sold in natural foods and mainstream markets nationwide in 10.5 oz single-use cans.

“Reed’s Natural Energy Elixir is a next generation energy drink that is fundamentally different from current energy drinks,” stated Christopher Reed, Founder and CEO of Reed’s, Inc. “Current energy drinks borrow from the health of an individual by providing an artificial boost from stimulants like caffeine. The long term effect of our beverage is to increase your basic health and energy levels and not to run you down. We look at it as a product for consumers who were previously not interested in energy drinks because of the ‘spike and crash’ syndrome, and the inclusion of artificial ingredients so common to mainstream energy drink products. Reed’s Natural Energy Elixir is different, it’s ‘Real Energy, Naturally.'”

Mr. Reed continued, “Because of our diligence in crafting the Energy Elixir from only the finest ingredients, this is an energy drink that the natural food retailers will carry, unlike the mainstream energy drinks, which have ingredients that would never find their way onto natural foods retailer’s shelves. We therefore believe there is a very large, untapped market, the natural foods consumer, for our Reed’s Natural Energy Elixir.”

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Reed’s, Inc. (REED) Reports Record Revenues for 2008

March 30, 2009

Reed’s, Inc., manufacturer of top-selling sodas in natural food stores nationwide, today announced its financial results for the year ended December 31, 2008. Compared to 2007 results, net sales increased 17% to $15.3 million; gross margin expanded 700 basis points to over 22%; and gross profit increased 68% to $3.4 million.

The company anticipates an even stronger 2009, projecting gross profit improvements of 20%-40%, a further reduction in operating expenses, and operating cash flow of breakeven by the end of the year as a result of gross profit expansion and additional operating expense savings.

Chris Reed, Founder and CEO stated, “Our success in natural foods is transitioning to the mainstream and it is showing in our financial results. Our Company is currently being valued at less than one times revenues, while, as recently as December 2008 private beverage companies were receiving two to three times revenues in sales transactions; and, in spring of 2007 Glaceau, the maker of Vitamin Water, sold in a cash deal valued at $4.1 billion, which is over 11 times its prior year revenues.”

He added, “Reed’s products are premium products. As we continue to grow, we believe the market will recognize the strength of our brand, and will value our company accordingly. In the meantime we will continue to move our company forward to add value for our shareholders.”

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Reed’s, Inc. (REED) Expands Relationship with Ingles Markets (IMKTA)

March 25, 2009

Reed’s, Inc., maker of the top-selling sodas in natural food stores nationwide, today announced that it has expanded its relationship with Ingles Markets, Inc. (NASDAQ: IMKTA), based in Asheville, North Carolina.

According to the press release, Ingles will begin taking delivery of Virgil’s All Natural Sodas direct to their warehouse in North Carolina. The company will also place the products in the mainstream beverage aisle in 100 of its stores.

Neal Cohane, Senior VP of Sales, National Accounts, stated, “We believe that the placement of our products in the mainstream beverage aisle will greatly enhance our brand recognition and translate into increased sales within the Ingles chain.” Mr. Cohane added, “Ingles is a significant customer, with 197 stores in six states. Our efforts to transition our product line into the mainstream has resulted in better sales and stronger brand recognition, which our customers recognize as a mutually beneficial opportunity.”

Eddie Pearson, Region Manager for Reed’s, Inc., commented, “With this enhanced relationship, we look forward to increasing awareness of the Reed’s and Virgil’s brands through the development of full year ‘partner-with-purpose’ marketing plans, in-store sampling campaigns, Weekly Ad/Circular participation and additional promotional efforts which will greatly expand our reach with Ingles customers in the region.”

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Reed’s, Inc. (REED) Ginger Brew and Virgil’s Natural Sodas Find Success at Natural Products Expo West

March 11, 2009

Reed’s, Inc. recently exhibited at the Natural Products Expo West, the largest show of its kind on the West Coast. The company’s management team and sales staff were present to promote Reed’s Ginger Brew and Virgil’s products to more than 53,000 industry members and retail consumers. While at the convention, Reed’s signed two new distribution agreements with Middle Eastern distributors, one in Israel and the other in Jordan.

“This show was a major success for us,” stated Christopher Reed, Founder and CEO of Reeds, Inc. “We had two great new products to push, our new Virgil’s Orange Cream Soda and Reed’s Natural Energy Elixir. We gave out over 9,000 samples of our products, which is about 50% more than last year. We penetrated new markets, including our first sales into the Middle East. Our booth had more traffic than any other year at the Expo West. It did not feel like a recession, and it’s obvious that the natural products sector is holding its own and even bucking the trend.”

In a post-expo press release, Adam Andersen, Show Manager, Natural Products Expo West said, “Retail buyers need face to face meetings, particularly in a slower economy. Buyers come to this show to seek out those new products that will fly off their shelves and offer a competitive advantage to their stores.” observed, “Natural Products Expo West 2009 featured more than 1,900 exhibiting companies occupying 300,000 square feet from 28 countries with 482 new exhibitors. The show’s success proved that, despite a cool economy, natural product sales are hot and growing.”

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Reed’s, Inc. (REED) Virgil’s Natural Soda Line Expands with Addition of Virgil’s Orange Cream Soda

February 25, 2009

Reed’s, Inc., manufacturer of top-selling sodas in natural food stores nationwide, announced that Virgil’s Orange Cream Soda will be introduced to the market this next week. The product is being offered in 12 oz. long neck bottles and packaged as a 4-pack.

Chris Reed, Founder and CEO of Reed’s, Inc., stated, “Orange and Orange Cream Sodas have been hitting the most popular flavor lists recently. We decided it was time to launch a Virgil’s version of this American classic. This means making it with the absolute best natural ingredients for the ultimate experience possible.”

He added, “Virgil’s Root Beer is a three-time Outstanding Beverage winner in the NASFT, the national gourmet trade association. No other beverage has won even twice. When we make a line extension to sit alongside Virgil’s Root Beer, we have to make an extraordinary product. We have already pre-sold it to many of our distributors and expect a pretty quick path to market with our core customers.”

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Reed’s Inc. (REED) and Rosauers Supermarkets Partner Up for Sales

October 27, 2008

Before the bell this morning, Reed’s, Inc. announced that Rosauers Supermarkets signed an enhanced partnership with the company. Rosauers Supermarkets is a chain of 21 supermarkets focused on serving the Inland Pacific Northwest under the brands of Rosauers, Super 1 Foods, and Huckleberry’s Natural Markets. All 21 supermarkets have committed to carry Reed’s ginger brews and Virgil’s All Natural Sodas alongside their wide variety of natural and organic products.

“Rosauers Supermarkets has been an established and trusted natural foods supermarket chain within the Northwestern U.S. marketplace since its founding in 1936. We are very pleased to expand Reed’s presence within each of Rosauers’ three supermarket banners, which we believe represents a significant opportunity to increase brand awareness in the Pacific Northwest,” stated Christopher Reed, Founder and CEO of Reed’s, Inc.

Carl Bertrand, Regional Manager for Reed’s, Inc., commented, “With this new partnership, we look forward to driving the Reed’s brand through the development of full-year ‘partner-with-purpose’ marketing plans, in-store sampling campaigns, Weekly Ad/Circular participation, and additional promotional efforts, which will greatly expand our reach with Rosauers consumers in the Inland Pacific Northwest marketplace.”

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Reed’s Inc. (REED) to Present at Healthy Living Conference

October 7, 2008

Reed’s Inc. (REED:NASDAQ) makes the top-selling sodas sold in natural food markets nationwide, and is currently selling their products in over 10,500 natural food markets, mainline retailers, and restaurants across the US and Canada.

Reed’s six award-winning, non-alcoholic ginger brews are unique in the beverage industry in that they are not manufactured. The company’s beverages are brewed using fresh ginger, spices, and fruits in a brewing process that predates commercial soft drinks.

Reed’s has expanded their product line by purchasing the top-selling root beer line in natural foods, Virgil’s Root Beer, and the top-selling cola line in natural foods, China Cola. Other product lines for the company include ginger candies and ginger ice creams.

Reed’s announced on October 7, 2008, that Chris Reed, the company’s founder and CEO, will present at the Canaccord Adams Healthy Living Conference. The conference is to be held on October 15, 2008 at 9:00 a.m. EST.

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Reed’s Inc. (REED): Healthy, Earth-Friendly Soda and Bubbly Profits?

August 26, 2008

Reed’s, Inc. (REED) is a maker of sodas, candies and ice creams with natural ingredients targeted at health conscious consumers. Reeds product line includes various flavors of ginger-brewed beverages such as original, extra, premium, raspberry, spiced apple, and cherry ginger; root beer, cream soda, black cherry cream soda, diet root beer, diet black cherry cream soda, diet cream soda, and Bavarian nutmeg root beer; and original china cola and cherry china cola. The company’s products can be found primarily in specialty food stores and gourmet outlets, in addition to the company’s website.

California-based Reeds is following in the footsteps of other natural soda makers like Jones Soda and Hansen’s in targeting consumers that crave carbonated beverages, but demand choices beyond traditional colas like Coca-Cola and Pepsi. It is estimated that carbonated sodas had a total of almost $66 billion in global sales in 2007, but sales of traditional sodas have been experiencing stagnant growth, while demand for alternative beverages, such as those produced by Reed’s, has surged.

Reed’s brewed drinks, such as brewed ginger drinks, actually preceded the invention of regular soda. Some reports even claim Reed’s Ginger Brew is outselling natural soda leader Hansen at Whole Foods, Trader Joe’s and Wild Oats’ stores. In addition, ginger products are thought to have health benefits not offered by traditional carbonated beverages. Earlier this month, Reed’s said Big Y and Kroger supermarkets would begin offering some of its products to their shoppers.

Reed’s shares closed today at $2.68 on volume of about 5,700. The $24 million company usually averages more than 13,000 shares traded a day. The 52-week range for Reed’s shares is $1.50-$8.00.

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Reed’s, Inc. (REED.OB) Enjoys Prosperous Second Quarter

August 20, 2008

With products selling in over ten thousand natural foods outlets, award-winning Reed’s, Inc. is one of the leading producers of specialty sodas. Financial results for the second quarter/first half of 2008 came Tuesday, and contained some impressive numbers.

Growth of both Reed’s and Virgil’s product lines for the quarter ended June 30th, 2008, boosted net sales more than 31 percent, achieving a figure of $4,570,816 and besting second quarter 2007 results by $1,098,456. This increase was driven by improved sales by existing retailers, as well as the addition of several new mainstream distributors. Coupled with positive strides in sales was a decrease in interest expense, affected by significant payments into the company’s long-term debt.

In reference to his company’s exceptional performance thus far in 2008, founder and CEO Chris Reed stated, “We are pleased with our strong start to the first half of 2008 and we expect our positive momentum to carry into the back half of the year. In addition to driving top-line sales growth, we will continue to evaluate methods to improve gross margin and enhance efficiencies in our operations. Specifically, because of the strong growth we have experienced in the last year we are better positioned to negotiate alternative co-pack production agreements, which we expect will result in further gross margin improvement. As a result, we expect to report improved bottom line results in the back half of 2008 compared to the first six-months of 2008.”

The company reports expected sales increases from existing markets in the latter half of this year, and plans to add roughly 3,500 new retail accounts stand to exponentiate those figures. Make no mistake, 2008 is certainly shaping up for Reed’s, Inc.

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Reed’s, Inc. (REED) Announces Expanded Partnership with Haggen, Inc.

July 29, 2008

This morning before the opening bell, Reed’s, Inc. announced that it has expanded its partnership with Haggen, Inc., which operates over 30 grocery stores in Oregon and Washington. The grocery chain offers its customers a wide array of natural and organic products, including Reed’s Ginger Brews & Virgil’s All Natural Sodas. The company will now also begin carrying Reed’s full product line throughout all of its Haggen Food & Pharmacy, TOP Food & Drug, and Larry’s Market stores.

The Founder and CEO of Reed’s, Inc., Christopher Reed, stated, “Our enhanced partnership with Haggen reflects Reed’s commitment and success in expanding into the mainstream marketplace. As a leading retailer of natural and organic products in Washington and Oregon, Haggen represents a significant opportunity to increase brand awareness in the Pacific Northwest.”

Carl Bertrand, regional manager for Reed’s, Inc., commented, “With this new partnership, we look forward to driving the Reed’s brand through the development of full year ‘partner-with-purpose’ marketing plans, in-store sampling campaigns, Weekly Ad/Circular participation, and additional promotional efforts, which will greatly expand our reach with Haggen consumers in Washington and Oregon.”

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Reed’s Inc. (REED) is Leading the Way with Natural Ginger Sodas and Foods

July 9, 2008

Reed’s, Inc. makes top-selling sodas sold in natural food markets nationwide. The company’s product offerings are being sold through specialty gourmet and natural food stores, retail supermarkets, and restaurants across the US and Canada.

The company’s six award-winning, non-alcoholic ginger brews are unique in the beverage industry. Reed’s beverages are brewed, not manufactured, and Reed’s uses fresh ginger, spices, and fruits in a unique brewing process. This brewing process originated in the Caribbean and predates modern soft drinks. The company also makes other related products, including ginger candies and ginger ice creams.

Ginger, derived from a root, is known around the globe for its health benefits. Ginger has traditionally been used to treat various ailments, including improving digestion, helping with arthritic pain, and curing motion and morning sickness. Recent studies have shown that ginger is also an anti-cancer agent.

This worldwide perception of the health benefits of ginger has helped Reed’s expand their product reach globally. So far in 2008, Reed’s has launched their products into many overseas markets, including the UK and Ireland, Belgium, the Netherlands, France, and Singapore. In the first quarter of 2008, sales for the company rose by 18 percent in comparison to the same period last year. Sales for the current quarter are expected to increase by 20 percent.

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Reed’s, Inc. (REED) Finds Itself in the News Again

July 7, 2008

In the past, Reed’s, Inc. has been featured in many publications, and today the company announced to its subscribers that it has been appearing in even more publications recently. In USA Today, Reed’s Virgil’s Diet Root Beer was named a “hit”. The root beer isn’t made with any artificial sweeteners, but instead perfectly blended with a number of different herbs and spices. Commenting on the exquisite taste, the article stated, “No question that this particular soda would make the perfect rootbeer float.”

The company also grabbed the attention of WallStreetNewsReporter, who interviewed CEO Christopher Reed. Reed’s, Inc. expects 2008 revenues to exceed last year’s revenues of $13 million by up to 20%. In order to meet increasing demand, the company is streamlining its business operations, refining its target market, and has upped the brewing capacity to handle up to $75 million in annual sales.

The company’s beverages are not the only products getting attention, however, as the company’s new peanut butter ginger chews were featured in Valley Times. Writing her review on the product, Jolene Thym (nicknamed “Picky Eater”) stated, “Those who can get past the mind block of finding savory flavors in their candy will find that the new chews are not only spicy enough for a mid afternoon wake up snack but they also pack enough ginger to soothe the tummy boost the immune system and help prevent motion sickness. I like them so well that I’m not sure I can part with a few chews for my niece who wants to feed them to her motion sickness prone dog.”

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Reed’s, Inc (REED) Announces Stronger Partnership with Sprouts Farmers Markets

June 30, 2008

Reed’s, traded on NASDAQ, is in the natural foods business, specializing in brewed ginger beverages. Reed’s has also expanded into ginger candy and ice cream products. Clearly passionate about the herb’s benefits, Reeds goes on to explain (on their website) that “Ginger is traditionally used to improve digestion, cure motion and morning sickness and for general health. The latest research is showing ginger to be anti-cancer, to lower cholesterol, and in Europe it is used as an arthritis medicine.”

The stronger partnership announcement with Sprouts, a large health grocer in the Phoenix area with 26 locations, will cover the Southwest and Rocky Mountain regions for Reeds, and positions Reed’s in more mainstream stores in the region. This news is on the tail of the announcement last week of Reed’s agreement with Ralph’s California-based supermarket chain.

Reed’s is currently trading around $2.16, near its 52-week low of $1.50. Its 52-week high, hit nearly a year ago, was $10.90. In March of 2008, a number of marketing and sales vice presidents were replaced. Right after that, the company started making a lot of positive moves. This latest announcement is one of them.

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Reed’s Inc. (REED) Adds 215 Ralph’s Supermarket Stores to Distribution Chain

June 26, 2008

Reeds Inc., a brewer/manufacturer and marketer of all-natural beverage, candy and ice cream products, works to offer natural food products primarily to the California market. The company’s primary lines of product feature the herb, ginger, but it also offers lines of carbonated cola, cream soda and root beer. At present, the company is selling its product lines through 10,500 supermarket, gourmet and natural food store outlets.

The company has been finding great success with adding large direct-to-chain outlets. Its most recent addition is the 215 outlets of Ralph’s Supermarkets – a division of Kroger Inc. The company’s product line has been included as an integral part of Ralph’s current advertising campaign, with inclusion in two currently running television ads. It has also been included within Ralph’s Optimum Wellness Program. From a general perspective, Reed’s is positioned to take full advantage of all marketing and promotional opportunities that Ralph’s has to offer.

The addition of more supermarket outlets is allowing the company to take advantage of store promotions on an increasing basis. This is an important aspect of the company’s cost-conscious culture. The current consolidation of the California distribution chain has tended to put more pressure on the company to advertise and market its products. In this respect, the addition of Ralph’s Supermarkets is an added bonus. As commodity prices continue to pressure all businesses, Reed’s is working at a solid clip to offset these effects on the company. The “new-age” category of the food segment is an expanding one and Reed’s is positioned nicely to take advantage.

Let us hear your thoughts: REEDS, Inc. Message Board

Reed’s, Inc. (REED.OB) Expands Distribution into Singapore

May 29, 2008

Reed’s, Inc. (REED.OB) announced that it has entered into a partnership with SuperNature to distribute its range of products into Singapore. In late June 2008, Reed’s will begin its sales and distribution efforts to natural food and grocery markets in the region.

SuperNature, which was established in 2001, is a wholesale distributor of natural and organic products in Singapore. It provides its products through home delivery services, its own health food storefronts, and wholesale distribution to specialty shops, restaurants, and hotels. SuperNature is committed to providing organic and natural products to the Singapore marketplace and increasing awareness of natural living.

Reed’s specializes in the development, manufacturing, marketing and selling of all-natural beverages, candy, and ice creams. It has a wide-range of non-alcoholic beverages including Reed’s Ginger Brews, Virgil’s Root Beer, and the China Cola line of products. Until now, Reed’s products have been sold in specialty gourmet and natural food stores, retail stores, supermarket chains, and restaurants throughout the U.S. and Canada.

Reed’s Founder and CEO, Christopher Reed, commented, “We are excited to announce our entrance into the Singapore marketplace. SuperNature will be selling our products to the grocery and natural food markets in Singapore as well as several resort communities in Singapore and Bali. Our partnership with SuperNature provides Reed’s an opportunity to introduce our unique brands of great tasting, natural sodas to a new consumer base.”

Let us hear your thoughts: REEDS, Inc. Message Board

Reed’s Inc. (REED) Reports Increased Net Sales for First Quarter 2008

May 22, 2008

Reed’s, Inc. (REED) announced its first quarter financial results for the period ending March 31, 2008. During the first quarter, Reed’s focused its sales efforts onto mainstream grocery store accounts.

The company recognized the need to reduce expenses in this period of economic uncertainty and rising fuel costs, and implemented a cost reduction strategy that should reduce operating expenses by approximately $300,000 each month starting in April 2008, with an annualized savings equaling $4 million. The company also increased prices on select items to help offset rising commodity prices and to keep their prices in-line with other natural sodas in the market.

Chris Reed, Founder and CEO, commented, “We delivered revenue growth in excess of 18%, in a challenging consumer environment, led by the strength of our core Reed’s and Virgil’s product lines and our continued expansion into mainstream grocery stores. We attribute our top-line success to the newly implemented sales strategy in which we have re-focused our sales efforts on strengthening our presence in the estimated 10,500 supermarkets nationwide. In addition, our sales force in making progress in leveraging our success in natural foods grocery stores to establish new relationships with mainstream grocery accounts.”

Reed’s reported first quarter net sales of $3,564,100 versus $3,012,690 for 2007. The 18.3 percent increase was driven by the increases in the Reed’s Ginger Brews and the Virgil’s line of products. The introduction of the Virgil’s diet soda line, along with an increase in sales of the Virgil’s 5 liter party keg, Virgil’s Root Beer, Virgil’s Cream Soda and Black Cherry Cream Soda, were the main reasons for the growth in the Virgil’s sales. Additional sales were also due to the agreements with new mainstream distributors and increased sales from existing distributors.

Gross profit decreased to $519,813 in 2008 compared to $539,622 in 2007. The reduction in gross margin can be attributed to the increased production costs at its main co-pack production facility and increased delivery costs. Co-pack production costs are the company’s largest expense, and to reduce these costs Reed’s is in the process of evaluating alternative facilities.

Reed’s currently has over $4 million of unencumbered inventory and receivable assets. The company anticipates having sufficient current assets to meet its needs to the end of 2008 without raising additional equity. When the overall market improves, the company may consider an equity raise to accelerate its plans to expand. Based on its level of receivables and inventory, the company estimates that it can obtain a $3 million line of credit if necessary.

Mr. Reed also stated, “In addition to driving top-line growth, during the first quarter we identified gross margin expansion opportunities by increasing prices on certain items so they are more in-line with competitors in the natural soda category and implemented a cost reduction strategy that more properly aligns our sales force with our growth opportunities. We expect to recognize the positive effects of these actions beginning in the second quarter, and sustaining throughout 2008, with gross margins improving above current levels, and a reduction in 2008 annual operating expense by approximately $3 million which includes $2 million from sales force reduction savings.”

During the second quarter of 2008, Reed’s will continue to focus on increasing sales to its existing supermarket accounts and sign an estimated 3500 additional accounts. The company will also approach additional regional mainstream distributors to deliver the beverage lines. The second quarter should reflect the company’s efforts to reduce its general, administrative and sales costs.

Reed’s expects second quarter sales to increase by about 20 percent compared to the same period in 2007. Along with the cost reduction plans that are already in place and the increased number of distributors, the company should see improved numbers for the next quarter.

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Reed’s, Inc. (REED) Has Passion for Their Products

May 6, 2008

When you have a passion for something, great things can happen. That’s how Chris Reed, founder and CEO of Reed’s, Inc. views things, and his results prove the theory. His company, which started out as a small enterprise, is now a publicly traded endeavor selling quality beverages and other products.

Reed’s passion is ginger. He believes in it because of its great flavor and for its health benefits. Reed’s, Inc. (REED), develops, manufactures, and markets sodas in natural food markets. They also market all-natural candies and ice creams, as well as Virgil’s Root Beer and China Cola. Virgil’s and China are recently acquired products lines that are now part of the Reed’s family.

Reed’s is part of the Beverages-Soft Drinks sector and trades on the OTCBB. They have a market capitalization of $62.7M. Reed’s headquarters are in Los Angeles, California. Their focus as a company is to provide their customers with quality products. They use old-fashioned natural methods with wholesome fresh ingredients to achieve this goal.

Their product lines sell through specialty gourmet and natural food stores, although they are branching out into the mainstream market as well. Reed’s now sells their products through supermarket chains, retail stores, and restaurants. Their market area is the United States and Canada.

They have the distinction of receiving the Best Imported Food Product Award in Canada for their Reed’s Original Ginger Brew. This judging was across all categories, not just beverages, which makes the award that much more special to the Reed’s team. Their Reed’s Spiced Apple Brew is also an award winner, while Virgil’s Black Cherry Cream Soda won the 2006 Progressive Grocer’s “Best New Product” Award.

Their product categories are: Reed’s Ginger Brews, Reed’s Ginger Juice Brews, Reed’s Ginger Candies, and Reed’s Ginger Ice Creams. Reed’s has six carbonated and four non-carbonated juice and ginger combinations. Their non-alcoholic ginger brews contain fresh ginger, spices, and fruits. Reed’s ice cream family has three flavors; ginger, chocolate ginger, and green tea ginger.

With a passion for all things ginger, Reed’s continues to innovate. They also continue to reach out to other market segments with their recently acquired product lines. Reed’s goal is to spread their old-fashioned quality products into new channels. They want to let people taste what they’ve been missing.

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