Reed's, Inc. · AMEX:REED
Reed's — Investor Presentation (April 2022)
36 slides from Reed's's investor presentation, Apr 5, 2022
Slide 1: Reed's Investor Presentation
Reed’s Investor . \ a Presentation NASDAQ:REED | April 2022
Slide 2: Cautionary Note Regarding Forward-Looking Statements
2a eee ESD A eee Cautionary Note Regarding Forward-Looking Statements Statements in this presentation that are not historical are forward-looking statements made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchang
Slide 3: Reed's is a leading innovator of better-for-you beverages
Reed’s Inc” is a leading innovator that provides the world with high quality and naturally bold™ better-for-you beverages.
Slide 4: Strong History of Leading the Ginger Category
Strong History of Leading the Ginger Category = + Ginger Ale Headquarters moved to + ReadytoDrinkMule Qigig@ ala als Norwalk, CT + Reed’s Ginger = FP Wellness Shots + Restaged Craft Ginger Candies NEW! Virgil’s Zero Sugar Brand Refresh ‘REEDS Reed’s Can Launch PRG Virgil's Can Launch Launched in Spr
Slide 5: Early Stages of Capitalizing on Significantly Larger TAM
Early Stages of Capitalizing 2020+ on Significantly Larger TAM Dee aa * Plan to continue leading the category in \ “All Things Ginger” 4 * Drive growth & improve profitability through our challenger brands * Ginger Ale — launched 2020 * Hard Ginger/Mule — soft launch 2021, rolling out 2022 * Virgil’
Slide 6: Leadership Brand: Ginger Beer
LeU LEADERSHIP BRAND: Ginger Beer LL io, Wakeeeac:
Slide 7: The Fan Favorite in Ginger Beer
2S =) The Fan Favorite in Ginger Beer Ginger Beer Expected US Growth* | CAGR 6.75% Reed’s 2021 ginger beer US $250 market share = ~15% $200 25,000+ points of distribution Significantly outpacing market oa growth YTD 2022 Su Reed’s Ginger Beer holds the #1 consumer brand awareness ol among ginger bee
Slide 8: Challenger Brands: Ginger Ale
CHALLENGER BRANDS: Ginger Ale “NOEFCLASSIC#ULDAY
Slide 9: Outpacing Market Growth in Category ~10x Larger than Ginger Beer
) Y Mim Outpacing Market Growth in Category that is ~10x Larger than Ginger Beer Ginger Ale Expected US Growth* | CAGR 4.0% * Reed’s Ginger Ale sales up 150% in 2021 $2,500 * Currently sold in mass (WMT, Target), club, grocery, natural food stores, and e-commerce $2,000 * Breaking into drug and conv
Slide 10: Fresh Ginger
FRESH GINGER | «+ Packed with fresh organic ginger «Classic ginger ale taste your customers love tural, no artificial preservatives and. high-fructose corn syrup chanted + Available in Original and Zero Sugar O1 (Geeciesel cue oak talean feryoumal) *RealGinger “ClassicTaste “Nothing Arti:
Slide 11: Challenger Brands: Hard Ginger/Mules
CHALLENGER BRANDS: Hard Ginger/Mules
Slide 12: Disrupting the Fast Growing RTD/FMB Category
Disrupting the Fast Growing RTD/FMB Category RTDs are in-trend and a natural fit for expansion given our leadership in “All Things Ginger” Recently took over distribution agreement from Full Sail (2022) * Reed’s is now registered in every state across the country and controls the sales & marketing p
Slide 13: Hard Ginger/Mules
Hard Ginger/Mules NOW, GINGER ALE THAT'S SPIKED! HARD GINGER ALE Natwally Brewed No Artificial Preservatives, Sweeteners, or Colors Bi RD) 2% ERE REED'S CRAFT ZERO SUGAR GINGER MULE: ENJOY ANYTIME, ANYWHERE! ‘ee | ESE | 7 ey a pl ite yi Mat convene. a Se Peale Vol, Bano Cars. — wmcdne Geo — sre at T
Slide 14: Challenger Brands: Virgil's Zero Sugar
Slide 15: Virgil's Zero Sugar
Virgil’s Zero Sugar + “Bold Flavor, Zero Aftertaste” * Zero Sugar rebrand / conversion to cans rolled out in 2019 * Highly profitable category in our portfolio - currently 45% total revenue * Virgil’s growing double digits and outpacing market growth * 2022: Zero Sugar line extension to include cold
Slide 16: Soda Smarter: Zero Sugar
__ gi, SODA SMARTER.” _ ZERO SUGAR GREAT DRINKS DON’T NEED FAKE INGREDIENTS. Virgil's has unlocked the secret to great taste with zero sugar using natural sweeteners, Choose from a variety of bold, complex flavors, and enjoy unparalleled refreshment that will = oes es puta smile on your face without
Slide 17: Broad Distribution Nationwide
. Broad Distribution Nationwide r ; Presidio ae a waiter fy MMIUERS Cub daw. wagons SAFEWAY). TS ais eT a ge lies cent fuey @RITEAID Ukrops|373) mm Anseasn TRADER ingles“ Harsteta Shopity Vvons 22 Bashas EE Instacart
Slide 18: Significant Channel Expansion Opportunity
Significant Channel Expansion Opportunity © Early stages of driving growth through both new doors and increased penetration © Significant e-commerce opportunity, both D2C and Amazon (only 3% sales volume today) © Historically only focused on grocery/mass and natural distribution 2021 Reed’s Doors? 2
Slide 19: Top Channel Partners - 2021
& Top Channel Partners - 2021 10,000,000 11.3% 8,000,000 e Delivering strong growth with majority of top channel partners Top 20 Accounts: $35.5M vs $30.6M 5,000, 00C z : ARSE USS e Diversified channel distribution: top 20 accounts = 89% revenue 4,000,000 2,000,000 13.5% 10.6% % “9. 23.6% 6.8% SPINS
Slide 20: Performance
PERFORMANCE 4 . ae, ; a Pipectassiceciy,
Slide 21: Financial Performance
-_ ee ) Financial Performance Key Performance Indicators $70.0 35% $60.0 $50.0 $40.0 $30.0 20% $20.0 15% $10.0 10% i, oe 208 2 §(10.0) 20 2022F1 5% $(20.0) 0% mm@mRevenue m@—EBITDA —=Gross Margin 1) Guidance issued and effective on March 31, 2022 only.
Slide 22: Sales (Thousands)
Sales (Thousands) Source: IRI MULO Measured retail $§ ga,500 2019 4,000 | | | | x 3,00 | i sag bo | | | 63,000 | 190 $2.0 $1,546 | | aoneee $2,551 $2.5 51,509 $1,142 | A $ ae $i $a $ 1,107 500 | | & e—Reed's Virgil's ———TotalReed's|Inc — -+s+++e0" Expon. (Total Reed's Inc) \
Slide 23: Continued Expansion of ACV Door Growth
> & Continued Expansion of ACV Door Growth : 50.0 2019 2020 2021 ACV % 20.0 Reed's Virgil's = ———Total Reed’s/Virgil's _ ssseeee Expon. (Total Reed's/Virgil's) as ae a a anes
Slide 24: Velocities Strengthening Over the Last Years
eae . ae Velocities Strenghtening Over the Last 3 Years 11.0 2019 2020 2021 10.0 Units Per Store Selling Per Week ——Reed's Virgil's ———=Total Reed's/Virgil's — «seereree GINGER BEER ITH NATURAL FLAVORS CONTAINS ALCOHOL ‘A Low CALORIE FOOD
Slide 25: Initiatives to Navigate Supply Chain Environment
Initiatives to Navigate Supply Chain Environment An integrated approach is the only solution to today’s supply chain impediments > Reduce Transportation and Warehouse Costs Prioritize Reed’s network vs out-of- network, as well as direct shipments Greater mix of cans vs. bottles Reduce rush order shi
Slide 26: New Management Team has Revitalized Growth
New Management Team has Revitalized Growth New management team joined Reed’s in early 2020 Created new culture of ownership and accountability Replaced “60% of management team 2019-2021 revenue growth of 54% Cases (000's) $39,300 ! $46,801 T (5,480) 5 (5,186) Gross Sales $41,718 $41,974 $54,658 Disc
Slide 27: 2021 was a Resounding Success ex Supply Chain Impacts
allie Si < 2021 was a Resounding Success ex Supply Chain Impacts , Continued Revenue Growth Distribution Expansion | tnmovation | Brand Launches Ginger Ale/Mocktails Rebranded Virgil’s Zero Sugar C a Execution in larger/higher growth categories , Increased retail coverage , (ACV) DSD distributor net
Slide 28: Investment Spending
Investment Spending Sales infrastructure DSD investments Broker network investments Targeted Marketing campaigns Launch Ginger Campagin— “Real is Better” Zero Sugar Campaign— “Bold Flavor - No Aftertaste” Hard Campaign — “Ginger Ale that’s Spiked!” Pricing Channel optimization Cans vs. bottles Minim
Slide 29: 2022 Forecast: Accelerate revenue growth to generate positive cash flow
a. 2 0 2 2 Fo re Ca st Accelerate revenue growth to generate positive cash flow e@ Continued strong revenue growth e Drive margin expansion through | supply chain efficiency e Targeted investment spending Ginger 2022 Net Revenue (est.) $59 - 62M" 2021 Net Revenue est.)
Slide 30: Investment Highlights
ALM NGS lb Investment Highlights Seasoned beverage company with multi-year leading position in the ginger category. Capitalizing on health & wellness tailwinds with new better-for-you ingredients & products. Extensive channel partnerships nationwide with centralized distribution network. New managem
Slide 31: Contact
CONTACT Company Contact Investor Relations Contact Tom Spisak, CFO Sean Mansouri, CFA (203) 890-0557 Elevate IR ir@reedsinc.com (720) 330-2829
Slide 32: Appendix
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Slide 33: Reed's Executive Team
Reed’s Executive Team Norman E. Snyder — \/ Lindsay Martin Chief Executive Officer if ’ Vice President, Marketing = Appointed CEO in March 2020. f / - Joined Reed’s in January 2018. = 20+ years of operations experience in the beverage industry. = Over 15 years CPG global and commercial = Experience
Slide 34: Reed's Board of Directors
Reed’s Board of Directors John Bello + Served.as Reed's Chairman since November 2016. * Prior experience as the Founder/CEO of SoBe and President of NFL Properties. ‘+ Eamed.a BA from Tufts and MBA from Amos Tuck School at Dartmouth College. James Bass * Elected to the board in September 2017. + 20+
Slide 35: a © Db £ o = re) = <x (= S P cai) a,
a © Db £ o 8 = re) = 8 <x (= S P cai) a, ee | REEDS =. s” REAL GINGER ALE dite FULL SUGAR ts ZERO SUGAR ZERO SUGAR FULL SUGAR fRGlig FULLSUGAR ia b Candy
Slide 36: 2022 YTD Wins
-. 2022 YTD Wins 4 new can SKU’s in 1400+stores. SPROUTS i New SKU’s authorized chainwide ACME Mules authorized in 100+ stores VZS Slim Can Display program FARMERS MARKET target om Ahold Food Lion 2 New in 1100 stores 1% ever BOGO program executed fe) A Giant Landover 4 new SKU’s in 170 stores BIG: