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

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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