Reed’s Announces Local UK Copacker Partner to Accelerate Market Expansion

Rhea-AI Summary

Reed's, Inc. has announced a new manufacturing partnership with Somerset Cider Solutions, a leading UK beverage manufacturer. This partnership will allow Reed's to produce Virgil's sodas close to the UK market, resulting in significant growth for the company. Empire Bespoke Foods, the distributor for Virgil's sodas in the UK, will leverage this lower cost model to drive new distribution and strengthen sales. Reed's also plans to expand this production model to the EU and Asia in the near future.

Somerset Cider Solutions will produce Virgil’s in-market, resulting in a lower-cost model that will help Reed’s drive UK market expansion

NORWALK, Conn., July 17, 2023 (GLOBE NEWSWIRE) -- Reed’s, Inc. (OTCQX: REED) (“Reed’s” or the “Company”), owner of the nation’s leading portfolio of handcrafted, natural ginger beverages, today announced a new manufacturing partnership with Somerset Cider Solutions (“Somerset”), a leading UK beverage manufacturer in Bristol, UK. This partnership gives Reed’s a cost-effective way to produce Virgil’s sodas close to the market, which will ultimately lead to significant growth for the Company.

Empire Bespoke Foods, the long-time distributor for Virgil’s sodas in the UK, will leverage this lower cost model to drive new distribution and strengthen sales in existing accounts.

“We are excited to partner with Somerset Cider Solutions and Empire Bespoke Foods to write a whole new chapter for Virgil’s in the UK,” said Norman E. Snyder, CEO of Reed’s. “The UK has been a very strong market for our classic, bold flavors of Virgil’s sodas. However, as a result of inflationary pressures, pricing to consumers has increased disproportionately within the market segment. This new model will get us to market much more efficiently, allow us to be more price competitive, and position the brand for further expansion. We also anticipate leveraging this production model in the EU in the near-term and in Asia later in 2023 or 2024.”

Somerset Cider will produce Virgil’s Root Beer, Virgil’s Black Cherry, Virgil’s Vanilla Cream Soda, and Virgil’s Orange Cream Soda.

About Reed's, Inc.

Reed’s is an innovative company and category leader that provides the world with high quality, premium and naturally bold™ better-for-you beverages. Established in 1989, Reed's is a leader in craft beverages under the Reed’s®, Virgil’s® and Flying Cauldron® brand names. The Company’s beverages are now sold in over 45,000 stores nationwide.

Reed’s is known as America's #1 name in natural, ginger-based beverages. Crafted using real ginger and premium ingredients, Reed’s portfolio includes ginger beers, ginger ales, ready-to-drink ginger mules and hard ginger ales. The brand has recently successfully expanded into the zero-sugar segment with its proprietary, natural sweetener system.

Virgil's® is an award-winning line of craft sodas, made with the finest natural ingredients and without GMOs or artificial preservatives. The brand offers an array of great tasting, bold flavored sodas including Root Beer, Vanilla Cream, Black Cherry, Orange Cream, and more. These flavors are also available in nine zero sugar varieties which are naturally sweetened and certified ketogenic.

Flying Cauldron® is a non-alcoholic butterscotch beer prized for its creamy vanilla and butterscotch flavors. Sought after by beverage aficionados, Flying Cauldron is made with natural ingredients and no artificial flavors, sweeteners, preservatives, gluten, caffeine, or GMOs.

For more information, visit drinkreeds.com, virgils.com and flyingcauldron.com.

Investor Relations Contact

Sean Mansouri, CFA
Elevate IR
ir@reedsinc.com
(720) 330-2829

FAQ

What is the new manufacturing partnership announced by Reed's, Inc.?

Reed's, Inc. has partnered with Somerset Cider Solutions, a leading UK beverage manufacturer.

What are the benefits of this partnership for Reed's?

This partnership will allow Reed's to produce Virgil's sodas close to the UK market, resulting in significant growth for the company.

Who will leverage the lower cost model?

Empire Bespoke Foods, the distributor for Virgil's sodas in the UK, will leverage this lower cost model to drive new distribution and strengthen sales.

What are the plans for expanding this production model?

Reed's plans to expand this production model to the EU in the near future and to Asia later in 2023 or 2024.