• Imagine Vita Coco (the coconut water company) but focused on premium ginger beers and handcrafted sodas.
• The craft soda equivalent of a company like Coca-Cola or Pepsi, but specializing in natural ginger beverages.
• Similar to how Boston Beer Company (Sam Adams) is known for craft beer, Reed's is known for its craft ginger beers and natural sodas.

• Reed's Craft Ginger Beers: Handcrafted beverages known for their distinct ginger flavor.
• Reed's Real Ginger Ales: Carbonated soft drinks featuring genuine ginger.
• Reed's Ready-to-Drink Products: Pre-packaged Reed's brand beverages convenient for immediate consumption.
• Virgil's Handcrafted Sodas: A line of artisanal sodas produced under the Virgil's brand.
• Ginger Candy: Confectionery items infused with ginger flavor.

Reed's, Inc. (REED) sells its products primarily to other companies rather than directly to individuals. Its major customers are the following categories of retailers and establishments:

• Natural food and gourmet retailers
• Grocery store chains
• Mass merchants
• Club stores
• Convenience and drug stores
• Liquor stores
• Industrial cafeterias
• On-premise bars and restaurants

Cyril Wallace, Chief Executive Officer and Director

Mr. Wallace was appointed Chief Executive Officer and Director in April 2025. He brings over 20 years of leadership experience from PepsiCo, where he most recently served as Vice President and General Manager for PepsiCo Beverages North America, overseeing a $3.2 billion business unit. Previously, he led PepsiCo's Atlantic Region as Sales Vice President and General Manager, managing a $2.7 billion territory and more than 4,000 employees. Mr. Wallace holds a Master of Business Administration in Project Management from the Keller Graduate School of Management at DeVry University and a Bachelor of Arts in Marketing from Georgia State University.

Douglas McCurdy, Chief Financial Officer

Mr. McCurdy was appointed Chief Financial Officer in February 2025. Before joining Reed's, he served as Chief Financial Officer and Chief Operating Officer at several early-stage growth companies, including REZI, Torrential, and BBE. He also held corporate finance and strategic advisory positions at Banc of America Securities and started his career as a Lieutenant in the US Navy. Mr. McCurdy holds a Master of Business Administration in Accounting and Finance from the University of Chicago Booth School of Business and a Bachelor of Science in Mechanical Engineering from Worcester Polytechnic Institute.

Neal Cohane, Chief Operating Officer

Mr. Cohane was appointed Chief Operating Officer in January 2026. Prior to this role, he most recently served as Chief Sales Officer at Eastroc Beverages. He previously founded Rootstock Brands, Inc., where he advised beverage companies on go-to-market strategy and execution. Mr. Cohane is also known to Reed's, having previously served as the Company's Chief Sales Officer for more than 15 years, during which he helped expand the brand's national footprint and strengthen retail and distributor relationships. Earlier in his career, he held senior leadership roles at PepsiCo, SoBe, and The Coca-Cola Company.

Salvatore Vassallo, Vice President of Operations

Mr. Vassallo was appointed Vice President of Operations in February 2025. Before joining Reed's, he served as Vice President of Supply Chain at Boylan Bottling Co., where he streamlined distribution networks, drove cost-reduction, and led innovation projects. His experience in supply chain management for CPG companies includes key roles at Ferrero, Snapple Beverages, and Henkel. He holds a Master of Business Administration from the University of Connecticut, a Bachelor of Science in Economics from Universita' Bocconi, and a MicroMasters Certificate in Supply Chain Management from MIT.

The key risks to Reed's, Inc.'s business are primarily centered around its operational dependencies, intense market competition, and persistent financial challenges exacerbated by economic uncertainty.

1. Operational and Supply Chain Dependence

   Reed's, Inc. faces significant operational risks due to its reliance on third-party co-packers and distributors for manufacturing and distribution. This dependence exposes the company to potential production delays, supply chain disruptions, and challenges in inventory management. Issues such as increased lead times and inflation in raw materials, logistics, and labor costs have been observed, which can disrupt the ability to obtain necessary materials and adversely affect operations. The limited number of co-packing facilities with adequate capacity also presents potential production challenges.

2. Market Competition and Shifting Consumer Preferences

   The beverage industry is highly competitive, with pressure from both large and small players. Reed's must continuously innovate and adapt to changes in consumer preferences, particularly the growing demand for healthier and functional beverages. The company has experienced declines in net sales, partly attributed to lost placements at key national retailers, and faces the ongoing challenge of rebuilding these relationships and expanding distribution.

3. Financial Performance and Economic Uncertainty

   Reed's, Inc. has reported significant financial declines, including net losses and decreased gross margins. The company has been impacted by higher inflation, rising energy prices, and broader economic uncertainty, which create challenges for its cost structure and the overall economic environment. Efforts to manage trade spend and address inventory write-offs also reflect ongoing financial pressures impacting profitability.

Reed's, Inc. operates in several addressable markets for its natural hand-crafted beverages.

• Craft Ginger Beer: The global ginger beer market was valued at approximately USD 5.57 billion in 2024 and is projected to grow to USD 10.33 billion by 2033. North America is identified as the largest market for ginger beer.
• Real Ginger Ale: The global ginger ale market size was approximately USD 2.48 billion in 2024 and is expected to reach USD 4.53 billion by 2033. North America held the largest share of the ginger ale market in 2025.
• Handcrafted Sodas (Virgil's): The global craft soda market size was valued at approximately USD 690.64 million in 2024 and is estimated to reach USD 1004.47 million by 2033. Another report indicates a global market size of USD 681.7 million in 2022, projected to reach USD 1,011.8 million by 2030. North America dominated the craft soda market, accounting for over 32% of the market share in 2022.
• Ready-to-Drink Products (Non-Alcoholic): The global non-alcoholic ready-to-drink (RTD) beverages market was valued at approximately USD 804.87 billion in 2025 and is projected to grow to USD 1,412.21 billion by 2034. The Asia Pacific region held the largest market share for non-alcoholic RTD beverages in 2025. The United States non-alcoholic ready-to-drink beverages market was valued at USD 440.61 million in 2024.
• Ginger Candy: null

Expected Drivers of Future Revenue Growth for Reed's, Inc. (REED)

Over the next 2-3 years, Reed's, Inc. (REED) anticipates several key drivers for future revenue growth, focusing on product innovation, expanded market reach, and enhanced sales strategies.

1. New Product Launches and Innovation: Reed's is prioritizing the expansion of its product portfolio with new offerings in the natural and functional beverage categories. The company is set to launch a new multi-functional soda line in April 2025, which will be formulated with organic ginger, adaptogen mushroom extracts, and prebiotic fiber, with flavors such as Berry Bubbly, Strawberry Vanilla, Lemongrass Ginger, and Root Beer. Additionally, a full restage of Reed's Ginger Beer and Ginger Ale, including new flavors like cranberry and blackberry, along with a mixer line (club soda, tonic), is planned for July 2026. The Virgil's handcrafted soda line is also undergoing innovation, with new canned products introduced in February 2025 and a planned transition from glass to cans for Virgil's and Flying Cauldron brands in 2027. These innovations aim to cater to evolving consumer preferences for healthier and functional beverages.
2. Channel Expansion and Increased Distribution: The company is focused on increasing its sales velocity and market penetration through channel expansion and securing new points of distribution. This includes increasing store placements in natural food and gourmet retailers, grocery store chains, mass merchants, club stores, convenience and drug stores, and on-premise bars and restaurants. Reed's has already secured over 8,000 points of distribution across key national retailers for its new multi-functional beverage line. The company is also working to restore key retailer placements and is implementing integrated 52-week strategies with distributors, moving away from short-term promotions.
3. International Market Expansion: Reed's is actively expanding its international presence. The company has production facilities in the U.K. and plans to expand into the European Union in 2025. Future international launches are planned for Greater China and Japan, followed by a broader rollout across Asia in 2026. This geographical expansion is expected to contribute to overall revenue growth.
4. Enhanced Sales and Marketing Efforts: To drive top-line growth, Reed's is concentrating efforts on developing its sales and marketing functions. The company plans to deploy funds from a recent private placement to enhance personnel and sales and marketing resources. Investments in sales talent and targeted marketing strategies are aimed at strengthening commercial execution and increasing brand visibility and consumer demand.
5. Improved Operational Efficiency and Fulfillment Rates: While not a direct driver of *new* revenue, improvements in operational efficiency, particularly in supply chain and fulfillment, are crucial for supporting revenue growth by ensuring products are available to meet demand. The company has taken steps to augment its co-packer network and is building finished goods inventory to address prior short order shipments and production delays. Improved inventory management and reduced delivery and handling costs are expected to support higher sales volumes and better profitability, ultimately contributing to sustained revenue growth.

Share Repurchases

No information available.

Share Issuance

• Reed's, Inc. completed an underwritten public offering in December 2025, issuing 2,500,000 shares of common stock along with warrants to purchase an equal number of shares at a combined price of $4.00 per unit, resulting in gross proceeds of approximately $10 million.
• In December 2024, Reed's closed a $10 million private placement to strengthen its liquidity.
• The company executed a 1-for-6 reverse stock split effective October 31, 2025, which reduced the number of outstanding common shares to approximately 8,945,620.

Inbound Investments

• Reed's majority stockholder, D&D Source of Life Holdings, purchased all secured notes from Whitebox Advisors on October 23, 2024, and subsequently exchanged these notes for shares of common stock on November 20, 2024, after deferring cash payments and extending note maturities.
• D&D Source of Life Holding Ltd., the controlling stockholder, invested approximately $5.0 million in Reed's December 2025 public offering.

Outbound Investments

No information available.

Capital Expenditures

• For the second quarter of 2025, Reed's reported capital expenditures of $152,000.
• In 2022, Reed's entered an agreement to procure 25 million sleek and standard 12-ounce cans during 2023, aiming to leverage supplier expertise for packaging and material innovation.
• Proceeds from the December 2024 private placement were allocated to building finished goods inventory, enhancing personnel, and sales and marketing resources, which may include capital investments.