Reed's Announces Expansion Plan to Triple Los Angeles Plant Capacity

Project to Complete by the Spring 2015 and Have Annual Savings of $1 Million

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LOS ANGELES, CA--(Marketwired - Sep 16, 2014) - Reed's, Inc. (NYSE MKT: REED) announced today it is expanding its Los Angeles plant, spending up to $1.5 million to replace existing equipment and triple the speed of production.

"We've maxed out our plant in Los Angeles," said Chris Reed, founder and CEO of Reed's, Inc. "Year over year quarterly sales keep growing at double digits, and we have decided to upgrade our line to handle our growth. With the advent of our new national advertising programs, we feel it's important to stay ahead of demand. By tripling the line speed in our Los Angeles plant, we will absorb much of the fixed overhead expenses and significantly reduce labor costs causing savings north of $1 million annually."

Reed says the project equipment purchasing is already 40 percent complete, and the whole project is expected to finish by the spring of 2015. The company's current bank line expires in November, and Reed's has multiple proposals from leading banks that will cut interest expenses at least by 50 percent. Each of these proposals include an equipment purchase equity line as part of this refinancing to cover the new equipment being purchased.

About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry and is sold in over 15,000 natural and mainstream supermarkets nationwide. In addition, Reed's products are sold through specialty gourmet, natural food stores, retail stores, convenience stores and restaurants nationwide and select international markets. 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 a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. The company is celebrating 25 years of hand crafting the best sodas in the world, naturally, in 2014.

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