Reeds Inc. (REED)

[Slojab]

Reed's Inc. Expands National Presence of New Culture Club Kombucha

Reed's, Inc. (NASDAQ: REED), maker of the top-selling sodas in natural food stores nationwide, is delivering successful distribution results with the rollout of Culture Club Kombucha into the $609 million+ Functional Juice & Kombucha Beverage category.
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."