Reed's, Inc. · AMEX:REED
Reed's — Investor Presentation (May 2016)
22 slides from Reed's's investor presentation, May 17, 2016
Slide 1: The Craft Soda Leader
The Craft Soda i REED!S __ are
Slide 2: Safe Harbor Statement
Safe Harbor Statement Some portions of this presentation, particularly those describing Reed's goals and strategies, contain "forward- looking statements.” These forward-looking statements can generally be identified as such because the context of the statement will include words, such as “expects,”
Slide 3: Senior Management Team
Senior Management Team Years of Industry Industry Experience Experience ChrisReed Founder & CEO 26 29 provuGlg 2: Years with REED ‘Mark Beaton coo New 7 @ rinse . Oniilercoors Daniel Miles cro New 2 o-— rte EY sss PEPSICO Neal Cohane SVP Sales & Marketing. a 2 Qeom Cibola Management team owns approx
Slide 4: Company History
Company History Reed's ‘Kombucha is feeoneed Reed's Nausea launched! expanded launcred o Serie ona Memuemen By Seb ‘Cream Soda Suan Reed's Acqui Introduced Purchased launched p08 Expansion of sonoma Sparklers Ginger Brews 29} expanded virils sodas & Real Cola Es Reed's introduced ‘to market place Ac
Slide 5: Revenue History and Distribution Channels
Revenue History and Distribution Channels $50.0 $40.0 $30.0 2 = $20.0 © $100 i f I} i $0.0 a 2006 2007 2008 ©2009 +2010 +2011 + «2012 +2013 +«2014 «2015 Natu ES wy cs Ey ‘$rnaver Joe's ss — Grocery SAFEWAY OY Greeniive PUBLIX. x, CD Tngrsients oie Club Stores iB)s} Costco Convenience Stores, Restaur
Slide 6: Operating Results and Significant Growth Drivers in '16 and '17
Operating Results and Significant Growth Drivers in ’16 and ‘17 Record month in Octo! on of Supply Chain to with $5.0 million in sales V mand Gross margins normalizing. Innovative “Bag-in-Box” uct Launch: All ral Soda Fountain program under development bust Natural thy. mers Demand. CIA Sells ieee E
Slide 7: Why REEDs?
Why REEDs? TNER + High tech flavors made in alab versus | small batch brewed from fresh fruits ‘ginger and spices + Fountain has become a necessary evil rather than a point of focus in the food service environment. te Consumers snes but_——_ E+ Healy natualconumptionts90 + Made wih Ges randiaithe” Pa
Slide 8: Reed's brand delivers one of highest gross margins per item in soft drink aisle
Reed’s brand delivers one of highest gross margins per item in soft drink aisle a peepee ee aes tee ee H = ee ee aa Rood’ moneur sku ect one nae Be re, a aa =: eee SAFEWAY LBoe Ste eee a So oo 20. ne ace
Slide 9: Core Product Assortment
Core Product Assortment REETD’S
Slide 10: Ginger Ales Using Fresh, Raw Ingredients
Ginger Ales Using Fresh, Raw Ingredients ale a) ae) em ore REED’S NSE MAT: REED 1"
Slide 11: Ginger Root...Fastest Growing Spice in the US Over Last Years!
Ginger Root...Fastest Growing Spice in the US Over Last 20 Years! Ginger = The Growth The Western World is Finally Catching Up To What the Eastern Givilizations Have Known For Centuries. raw alilizcas Source: USDA/Economic Research Service - Feb 7, 2009 REED’S EUNICE 2
Slide 12: Latest Bottled Product Release: Reed's Stronger Ginger Brew
Latest Bottled Product Release: Reed’s Stronger Ginger Brew Requested by bars and restaurants for “Mule 50% more ginger than R Ginger Brew All natural brewed soda Launched at 00 West REED’S caENIRED Fa
Slide 13: New Reed's Stronger Ginger Brew Makes Cover in July
New Reed’s Stronger Ginger Brew Makes Cover in July GIVE IT REED’S NYSE MKT: REED 14
Slide 14: Reed's Partnering with Major Liquor Companies
Reed’s Partnering with Major Liquor Companies https//alobenewswire.com/news:telease/2015/07 /30/756384/ 10143863 en/Reed-*-Takes-the-Reins-With-the-Moscow-Mule-Leading- the-Chargeshtm REED’S mace .
Slide 15: The Company believes the world is changing and that consumers are demanding natural products!
The Company believes the world is changing and that consumers are demanding natural products! x. ~ Che New ork Cimes Chipotle to Stop Using Genetically Altered Ingredients Che New York Cimes Panera Bread Plans to Drop a Long List of Ingredients "We're tying to draw a line in the sand in the industry
Slide 16: Reed's Corp. Portfolio is #1 in Natural Foods Channel
Reed’s Corp. Portfolio is #1 in Natural Foods Channel Reed's Corp $11,630,000 Zevia $10,945,000 San Pell TT $5,451,000 Blue Sky $5,324,000 Hansens |$5,070,000 \ZzeE $3,409,000 RWKnudsens [|__| $2,030,000 QDrinks = ,083,000 Fentimens | ]$1,000,000 Natural Brew [=23s099,000 Source: Sugar Sweetened Sod
Slide 17: Reed's Also Dominant by Flavor With of the Top Sellers
Reed’s Also Dominant by Flavor With 4 of the Top 10 Sellers Reed's Extra | Virgil's Root Beer Zevia Root Beer Reed's Premium Zevia Ginger ale San Pell Rossa Zevia Cola San Pell Liminota =a Reed's Original |_ & San Pell Aranciata Source: Sugar Sweetened CSD Sodas Natural Supermarkets Channel > 52 wee
Slide 18: Flipped the Flavor Profile in Natural Foods On Its Head.
Flipped the Flavor Profile in Natural Foods On Its Head. Reed's Extra Ginger Leads way with Best Selling CSD Flavor in Natural Food Channel Root Beer Ginger Ale Conventional Grocery Natural Foods Channel Source: Sugar Sweetened CSD Sodas Natural Supermarkets Channel >52 weeks ending 4/17/16 REED’S c
Slide 19: Reed's Delivers Growth in Conventional Supermarkets
Reed’s Delivers Growth in Conventional Supermarkets Total CSD’s - 0.3% Source: Sugar Sweetened CSD Sodas Conventional Supermarkets Channel 52 weeks ending 4/17/16 REED’S iv En Ree s
Slide 20: Chief Operating Officer — Mark Beaton
Chief Operating Officer — Mark Beaton © Operational Leader and Change Agent © 17+ Years of Experience including: VP of Operations at Dr. Pepper/Snapple Group Management roles at Pepsi Bottle Group Supervisory roles at United Parcel Service (UPS) ¢ Warehouse and Distribution Operations Experience © S
Slide 21: Chief Financial Officer — Dan Miles
Chief Financial Officer — Dan Miles °30+ years of financial management experience eIncluding Ernst & Young *Approximately 20 years of beverage industry experience Pepsi Bottle Group Miller Coors Licensed CPA in state of California REED’S NYSE MKT: REED 2
Slide 22: Thank You For Your Participation!
Thank You For Your Participation! Chris Reed, Founder & CEO Reed’ s, Inc. creed@reedsinc.com Ph: 800-99-REEDS ext. 10 REED’S caENIRED 23