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Reed’s Ginger Brew Public Offering Hits Grocery Shelves This Week Via Bottleneck Tags


El Segundo, Calif. (November 15, 2005) — Reed’s Inc. Founder and CEO Chris Reed is betting on consumers’ tingling love for his Ginger Brew to entice them to put down their drink and invest in the New Age beverage company. Thanks to the thousands of IPO neck-tags that dress bottles hitting grocery shelves this week, Reed’s Ginger Brew fans will have the chance to own a piece of the legendary California beverage company to the tune of four dollars a share.

A simple advertisement on the back page of November’s Utne Reader has already generated far more investment dollars than Reed had expected — including interest from major investors. But the tie-dyed “ginger brew tycoon” has hopes that the adoring consumers he hears from so fervently will be able to dominate ownership of the $8 million dollars being raised in order to put the symbol REEDS squarely on the NASDAQ stock market exchange next year.

In the great tradition of Ben & Jerry’s and Samuel Adams, Reed’s Inc. wants to grow on the shoulders of public support. The nation’s only beverage-maker to brew its soft drinks, best known for its premium all-natural Original Ginger Brews, Virgil’s Root Beer and China Cola, the proceeds will allow Reed’s the additional capacity and distribution to become a truly mainstream brand — far beyond its health store roots.

Reed’s, which uses over a million pounds of fresh ginger annually with craftsmanship found only in micro-breweries — enjoys intense consumer loyalty with revenues exceeding 20 percent a year growth, more than twice the 11 percent annual growth of the New Age beverage category. This fast-growth sector is expected to reach $18 billion by 2008. Reed’s “secret sauce” goes beyond its novel ingredients, but in fact may be its products’ consumer mystique. Word of mouth among pregnant women, chemotherapy patients, seasick travelers, ulcer victims, arthritis sufferers, parents of autistic children and others has become a constant drumbeat since before the phrase “New Age” existed. Stories pour in daily at the L.A.-based brewery’s offices, and account for a significant slice of its customer base, according to Reed, who can rattle off the names of chemotherapy centers serving his product.

A cross-over consumer hit, Reed’s spicy Jamaican style ginger brews have caught fire with black consumers, hip-hoppers and musicians. Celebs from director David Lynch and film stars Kerry Washington (“Ray”), Brad Pitt and Leo DeCaprio to Aerosmith guitarist Joe Perry champion Reed’s for its hip-meets-healthy appeal. Perry, known for his love of spicy food, keeps his tour bus kitchen “well stocked” with bottles of Reed’s Ginger Brew because “it’s a gourmet Ginger Beer whose extra strength has a bite to it, is actually quite hot,” mentioning Reed’s in a newspaper story that uses a product to describe his passion. Perry’s enduring discovery is not an isolated one. Actress Washington’s account was less glamorous: she claims Reed’s Ginger Brew was her salvation in the aftermath of a recent food poisoning incident — yet more proof that the company’s healthy roots and original vision are not lost on a discerning public.

With annual sales of over $10 million, Reed’s has achieved what is most difficult to replicate: an authenticity and unfettered drive-outta-my-way consumer appeal that can be taken to the bank. The proceeds from the IPO will allow the company to expand distribution in mainstream grocery channels, expand its popular on-draft root beer and cream soda business to all of their lines, pump-up marketing, and compete fully with deep-pocketed industry competitors -- Cadbury, Hansen’s, Phillip Morris, Pepsi – who rely on brand saturation to build consumer loyalty.

Will the tie-dyes triumph? Those familiar with Chris Reed say not to bet against him. Known to be fiercely independent, Reed is a chemical engineer, herbalist, professional “World Music” band member, and natural healing devote´. He founded Reed’s Inc. in 1987, driven by his passion for natural healing agents, and for reviving the lost art of ancient Chinese herbal tonics that last reached their peak of popularity during the American Revolution. Reed created all of the company’s original product line recipes and proprietary brewing processes. He orchestrated the company’s purchase and conversion of an 18,000 square foot warehouse into “The Brewery” in 2000, a transformational event in the company’s explosive growth. Other signature events include the company’s purchase of the Virgil’s Root Beer brand from the Crowley Beverage Company in 1999, China Cola in 2000, and a launch of a line of ginger ice creams and ginger candy in 2001.

Brookstreet Securities of Santa Monica is the underwriter of the $8 million initial public offering. More information can be found at

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