Reed’s, Inc. develops, manufactures, markets and sells natural non-alcoholic and New Age beverages, candies and ice creams. New Age Beverages is a category that includes natural soda, fruit juices and fruit drinks, ready-to-drink teas, sports drinks and water. As of December 31, 2008, the Company manufactured, marketed and sold five product lines: Reed’s Ginger Brews; Virgil’s Root Beer, Cream Sodas and Real Cola, including diet sodas; China Colas; Reed’s Ginger Chews, and Reed’s Ginger Ice Creams. The Company sells most of its products in specialty gourmet and natural food stores, supermarket chains, retail stores and restaurants in the United States, and to a lesser degree, in Canada, Europe and other international territories. It primarily sells its products through a network of natural, gourmet and independent distributors. During the year ended December 31, 2008, the Company launched its Peanut Butter Ginger Chews, the second candy in the Reed’s Ginger Chew line.