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Crystal Equity Research New Report on REED’S, Inc.

March 23rd, 2010 In Newsletter Updates | No Comments

Crystal Equity Research has issued a new report on Reed’s, Inc. (REED: Nasdaq) with an updated outlook on the pending acquisition of Jones Soda (JSDA: Nasdaq). Click here to Access This Report or copy the following into your browser: http://www.crystalequityresearch.citymax.com/f/REED_Update_3-23-10.pdf

Reed’s, Inc. Allows Jones Soda to Pursue Alternative Options

March 23rd, 2010 In Newsletter Updates | No Comments

LOS ANGELES, CA — (Marketwire – March 22) – Reed’s, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, announced today that Jones Soda, Inc. (NASDAQ: JSDA) has received an unsolicited offer by a third party and has terminated the exclusivity provision of the Letter of Intent (LOI) signed with Reed’s, Inc. on March 9, 2010.

As stated in the Letter of Intent, Reed’s, Inc. had come to mutual terms with Jones to acquire the company for approximately $9.8 million in cash and stock.  On March 19th, 2010, Jones informed Reed’s that it received an unsolicited proposal that it would like to pursue while continuing to have discussions with Reed’s, Inc.

Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc., stated, “Jones management has a fiduciary responsibility to its shareholders to consider any offers to buy the company and we respect that. As of yet, we have not seen the terms of the new offer. However, I would like to reiterate that our offer is based mostly on stock, which has not yet reflected the value of the post merger company. The post merger Reed’s, Inc. would be worth more than the two companies alone due to the significant cost savings associated with the consolidation of operations. While both companies have struggled with profitability over the past few years, the combined entity would most probably not. Reed’s, Inc. should be profitable in 2010 even without this merger.”

Mr. Reed concluded, “The merger with Jones is not a necessity for Reed’s, as our business is healthy and picking up momentum on all fronts.  We reiterate our guidance for double digit growth in 2010 and we will continue to look for other opportunities for synergistic acquisitions in the course of building our business.”

‘Reed’s Rx’ Over-the-Counter Anti-Nausea Products to Be Carried in CVS Pharmacy Stores Nationwide

March 23rd, 2010 In Newsletter Updates | No Comments

Product line expected to be on store shelves in April 2010

Los Angeles, California, March 23, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News) (“Reed’s” or “the Company”), maker of the top-selling sodas in  natural food stores nationwide, announced today that CVS Pharmacy Inc. operator of over 7,000 CVS/pharmacy and Longs Drug Stores nationwide, will begin carrying the new ‘Reed’s Rx’ line in the  digestive/stomach aisles of CVS Pharmacy stores nationwide. ‘Reed’s Rx’ products are over-the-counter ginger-based remedies for nausea and motion sickness.

“Consumers have been using our natural products for morning sickness and motion sickness for years.  Some doctors and cancer patients have reported its effectiveness with easing the discomfort associated with chemotherapy.  We have found a lot of exciting research and historical evidence pointing to ginger as an effective remedy for nausea throughout history, some dating back as far as the early Roman Empire,” commented Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc.  ”A ginger based nausea relief product is an obvious natural remedy, and we already have a reputation for making the highest quality natural beverages with ginger.  As a result, we developed our ‘Reed’s Rx’ line.”

Mr. Reed added, “CVS is cutting edge in its offerings and has been integrating natural alternatives into their stores for quite some time and we are pleased that we could attract a leading retailer like CVS to carry this new product nationwide on launch.”

About CVS/pharmacy
CVS/pharmacy, the retail division of CVS Caremark Corporation (NYSE: CVS), is America’s leading retail pharmacy with more than 7,000 CVS/pharmacy and Longs Drug stores. CVS/pharmacy is committed to improving the lives of those we serve by making innovative and high-quality health and pharmacy services safe, affordable and easy to access, both in its stores and online at CVS.com. General information about CVS/pharmacy and CVS Caremark is available here.

Reed’s Inc. and Jones Soda Co. Enter Into Letter of Intent Regarding Potential Merger; Jones CEO to Depart Grocers (AWG)

March 9th, 2010 In Newsletter Updates | No Comments
LOS ANGELES, CA and SEATTLE, WA–(Marketwire – March 9, 2010) –  Reed’s, Inc. (NASDAQ: REED), maker of top-selling sodas in natural food stores nationwide, and Jones Soda, Inc. (NASDAQ: JSDA), a leader in the premium soda category and known for its unique branding and innovative marketing, announced today that the two companies have entered into a Letter of Intent (LOI) regarding a merger, with Reed’s as the surviving company. The combination would unite a number of leading premium soda brands, such as Reed’s Ginger Brew, Virgil’s, and Jones Soda. The proposed merger would also provide the two companies with the opportunity to realize the potential benefits of increased size and scale, as well as cost efficiencies in several aspects of the combined business, including administration, operations, and customer interface. The strength of the Reed’s portfolio in the direct selling channel combined with Jones Soda’s strong national distributor structure allows for future growth opportunities for each company’s brands across these channels.
The non-binding provisions of the LOI contemplate a merger transaction in which Reed’s would acquire Jones Soda for a combination of cash and Reed’s common stock. The shareholders of Jones Soda would receive an aggregate of 4.5 million shares of Reed’s common stock (or approximately 0.17 of a share of Reed’s common stock per share of Jones Soda common stock based on current Jones Soda shares outstanding) and cash of $0.10 per share of Jones Soda common stock (or an aggregate of approximately $2.56 million based on current shares outstanding). There is no financing contingency as Reed’s would use its best efforts to secure the cash portion of the consideration, and if it is unable to secure all or part of this cash, any deficit would instead be paid in additional shares of Reed’s common stock, with the aggregate number of shares equal to the amount of the cash deficit divided by $1.70.
Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, stated, “We have watched Jones for years and have been impressed with its innovative marketing programs, strong brand recognition, and loyal customer following. I am confident that our portfolio of brands will benefit from Jones Soda’s marketing savvy, as well as its organization’s deep mainstream distribution relationships. At the same time, we believe our strong infrastructure and operational capabilities will help drive important efficiencies through Jones Soda’s supply chain. With minimal customer and demographic overlap between our combined brands, we believe this transaction also provides us with compelling merchandising and growth opportunities in the years ahead.”
Jones Soda retained North Point Advisors in February 2009 to assist in evaluating the company’s strategic alternatives. Since that time, Jones has reviewed a broad range of strategic alternatives to enhance shareholder value.
Rick Eiswirth, Chairman of the Board of Jones Soda Co., stated, “Over the past year we have taken numerous steps to reduce our expenses and reinvigorate our top line in order to return to profitability. Unfortunately, the challenging economic environment combined with our current capitalization has made it extremely difficult to operate on a standalone basis. After evaluating a range of strategies aimed at improving our outlook, our Board of Directors determined that the proposed merger with Reed’s offers our shareholders the most compelling long-term benefits of the available alternatives. We believe the combination of Jones and Reed’s will create a substantially larger beverage business with a more powerful operating platform and a brighter future. We are especially pleased that the Jones shareholders will be able to participate in the potential upside of the combined business, as a meaningful portion of the consideration is in the form of Reed’s stock.”
Jones Soda also announced that Joth Ricci will be stepping down as Chief Executive Officer effective April 2, 2010 in order to pursue other business opportunities. Joth Ricci commented, “I have truly enjoyed my time at Jones Soda and I’m pleased with the work our team has done to improve many aspects of our business. Unfortunately, due to the current market conditions, it has taken longer than anticipated to produce the necessary top line results to effectively return to profitability and stem our cash burn. However, I remain confident in the strength of the Jones Soda brand and believe the proposed merger with Reed’s provides Jones Soda an improved platform from which to capitalize on its future prospects and is in the best interests of its shareholders.”
Under the binding provisions of the LOI, Reed’s and Jones Soda have until April 5, 2010 to negotiate a definitive agreement on an exclusive basis. If Jones Soda receives an unsolicited acquisition, financing or other strategic transaction proposal that the Board of Directors of Jones Soda determines is superior to the proposed merger transaction with Reed’s, then Jones Soda may terminate the LOI and reimburse Reed’s for its third party out-of-pocket expenses (not to exceed $75,000).
Since the transaction terms of the LOI are non-binding, they are subject to the negotiation, execution and delivery of a definitive agreement approved by the respective Boards of Directors of each company. Accordingly, the proposed terms of the transaction are subject to change, and there can be no assurance that Reed’s and Jones Soda will enter into a definitive agreement on the terms outlined above, if at all, or that any transaction between the parties will ultimately be consummated. The companies do not intend to disclose developments with respect to negotiation of the definitive agreement until their respective Boards of Directors deem it appropriate.
The transaction would also be subject to approval of the shareholders of both Jones Soda and Reed’s.

Reed’s, Inc. Establishes New Relationship with Associated Wholesale Grocers (AWG)

March 4th, 2010 In Newsletter Updates | No Comments

Six Reed’s SKUs and Six Virgil’s SKUs now available to over 2500 retail outlets in the AWG network

LOS ANGELES, CA — (Marketwire – March 4) – Reed’s, Inc. (NASDAQ:REED), maker of the top-selling sodas in natural food stores nationwide, announced today that it has established a new retail relationship with Associated Wholesale Grocers (AWG). AWG has authorized six SKUs for the Reed’s Ginger Brew line and six SKUs for Virgil’s Soda line.

The 12 SKUs include: Reed’s Extra, Premium, Original, Raspberry, Cherry & Spiced Apple Ginger Brews; and Virgil’s Root Beer, Cream Soda, Black Cherry Cream Soda, Diet Root Beer, Diet Cream Soda & Diet Black Cherry Cream Soda.

Associated Wholesale Grocers (AWG) is a retailer-owned cooperative serving over 1900 retail member stores and 600 affiliated stores with a complete assortment of grocery, fresh meat, produce, specialty foods, health care, and general merchandise items. AWG and its subsidiaries, which operate through an extensive distribution network and eight distribution centers, deliver to retail outlets in 24 states. AWG recorded sales of $6.9 billion in 2008.

Mr. Eddie Pearson, Reed’s VP of Sales Southern Region, stated, “This partnership with AWG continues our focus on intelligently and methodically building our distribution coverage throughout the South to mainstream stores currently outside of our core customer base. ”

Mr. Chris Reed, Founder, Chairman and CEO of Reed’s, Inc. commented, “AWG is a great addition to the Reed’s distribution system. Gaining access into Associated Wholesale Grocer gives us the potential to gain entry into 2500 retail supermarkets in 24 states. This continues our march across the U.S. to gain presence for our Reed’s & Virgil’s brands in mainstream supermarkets while driving sustained growth for the company and our shareholders.”

Reed’s, Inc. Begins Production and Shipment of its New Ginger-Based ‘Reed’s Rx’ Remedy for Nausea and Motion Sickness

March 2nd, 2010 In Newsletter Updates | No Comments

Ginger has a tradition of 30 to 40 centuries of being used as a nausea relief –

Los Angeles, California, March 2, 2010 — Reed’s, Inc. (NASDAQ:REED – News) (OTC.BB:REEDP – News) (“Reed’s” or “the Company”), maker of the top-selling sodas in natural food stores nationwide, announced the introduction of its new ‘Reed’s Rx’ Natural Ginger Nausea Relief for the drug store channel. The Company has already begun producing and shipping its ‘Reed’s Rx’ Natural Ginger Nausea Relief to drug stores and has placed its first advertisements into drug store trade publications. The product is being launched in convenient 4-packs of 5.5-ounce cans and is a brew of fresh ginger, honey, pineapple juice, and lemon and lime juices with added vitamin B6.

“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. 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,” stated Chris Reed, Founder, Chairman and Chief Executive Officer of Reed’s, Inc. They are both delicious and effective.”

Mr. Neal Cohane, Senior VP of Sales and Marketing of Reed’s, Inc., commented, “The ‘Reed’s Rx’ product line represents an exciting new growth area, and is a testament to the naturalness and healthiness of our products, which can be used to treat nausea and motion sickness. This new product allows us to access over 240,000 convenience, grocery, and drug stores across the U.S. that have stomach aisles offering over-the-counter nausea relief products, as well other channels, including hospitals, cancer centers, airports, and cruise ships, where consumers are looking for natural alternatives. We believe this represents an exciting new opportunity to significantly grow our sales beyond traditional food and supermarkets.”

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