The Alkaline Water Company Achieves Record Third Quarter Sales, Up 102%
Third Quarter Sales of $7.69 Million
SCOTTSDALE, Ariz., Feb. 14, 2019 (GLOBE NEWSWIRE) -- The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER)(the “Company”), a leading producer of premium bottled alkaline drinking water sold under the brand name Alkaline88®, today announced results for the third fiscal quarter ending December 31, 2018, marked by continued record growth and expansion.
“We have just closed our third consecutive quarter of accelerated growth with sales of $7.69 million, a 102% increase in revenue as compared to last year,” stated Richard A. Wright, President and CEO of The Alkaline Water Company Inc. “According to recent Nielsen data, in the last 13 week period ending on December 29th, Alkaline88® was ranked the 10th largest water in the enhanced (value-added) water segment in dollar sales, growing 96.2% from last year. We are now the second fastest growing branded water among the top 20 brands in the U.S., and outperformed the enhanced (value-added) water segment by 8.9 times their reported segment growth rate of 10.8%”.
Third Quarter Highlights (Unaudited)
(All amounts are in U.S. dollars)
- Recorded sales of over $7.69 million for third fiscal quarter 2019, up 102% compared to third fiscal quarter 2018;
- Up-listed to the NASDAQ Stock Market on December 10, 2018;
- Continued expansion of A88 Infused Beverage Division and its hemp infused, flavored, and sparkling alkaline water product line;
- Secured water-soluble natural hemp extract formulations to develop our hemp infused water;
- Expanded international sales strategy with new Canadian co-packer, World Choice Bottling;
- Reported highest monthly sales in Company history, with over $3.1 million in the month of November 2018;
- Began selling Alkaline88® to over 7,500 CVS stores nationwide;
- Completed coast-to-coast expansion with Safeway/Albertsons; and
- Net loss for the quarter ended December 31, 2018 was $3.7 million or a loss of $0.11 per share, compared to a net loss for the quarter ended December 31, 2017 of $2.7 million or a loss of $0.12 per share.
“Since the end of our third quarter, Alkaline88® has brought in three important partners and introduced a new line of flavored waters into the market. Each one of these partners, ArchPoint Group, E.A Berg, and Water Source One will fill a strategic role in our accelerated growth. We’re also anticipating FDA clearance on our full-spectrum hemp extract products and anticipate bringing them to approved markets before the end of our fiscal year,” concluded Wright.
Subsequent Events of Third Quarter Results:
- Introduced the Van Program for the convenience channel through agreement with E.A. Berg Associates;
- Launched first phase of our A88 Infused Division Inc’s sales strategy at multiple trade shows, receiving enthusiastic product endorsements;
- Proudly supported the Wounded Warrior Project;
- Rang the NASDAQ Stock Market Opening Bell to celebrate our recent uplisting;
- Partnered with Water Source One to expand production and distribution capabilities;
- Entered into brand development agreement with ArchPoint Group; and
- Added ShopRite as a major East Coast retailer
The Company fully intends to comply with all federal, state, and local laws, rules and regulations as the Company develops its hemp-infused alkaline water and other nutraceutical product lines. The Company will not pursue the production or sale of hemp-infused products until legally permitted and all necessary approvals have been obtained.
About The Alkaline Water Company Inc.
The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER) is a leading producer of premium bottled alkaline drinking water sold under the brand name Alkaline88®. With its innovative, state-of-the-art, proprietary electrolysis process, the Company produces healthy, all-natural and great-tasting alkaline water for a balanced lifestyle. Founded in 2012, the Company is headquartered in Scottsdale, Arizona, and focuses on national distribution and marketing for retail sale of Alkaline88®, one of the fastest growing premium bottled water brands on the market. To learn more about The Alkaline Water Company, please visit: www.thealkalinewaterco.com or connect on Facebook, Twitter, Instagram or LinkedIn.
About Alkaline Water Products
Alkaline88®is a premier 8.8 pH balanced bottled alkaline drinking water enhanced with trace minerals and electrolytes. The product offers consumers the unique opportunity to purchase alkaline water in conveniently packaged 500-milliliter, 700-milliliter, 1-liter, 1.5-liter, 3-liter and 1-gallon sizes. The Alkaline Water Company Inc. is currently in the midst of a national mass-market expansion program, where the product is already available for consumer sales at a growing number of major retail locations including national retailers such as Safeway/Albertsons, Walmart, Kroger, CVS, and other top regional and local supermarket chains. To find a retailer near you visit: http://thealkalinewaterco.com/where-to-buy/
Notice Regarding Forward-Looking Statements
This news release contains "forward-looking statements." Statements in this news release that are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the following: that each one of these partners, ArchPoint Group, E.A Berg, and Water Source One will fill a strategic role in our accelerated growth; and that the Company is anticipating FDA clearance on its full-spectrum hemp extract products and anticipate bringing them to approved markets before the end of our fiscal year.
The material assumptions supporting these forward-looking statements include, among others, that the demand for the Company's products will continue to significantly grow; that the past production capacity of the Company’s co-packing facilities can be maintained or increased; that the Company will receive all necessary regulatory approvals for the production and sale of CBD/hemp-infused water that there will be increased production capacity through implementation of new production facilities, new co-packers and new technology; that there will be an increase in number of products available for sale to retailers and consumers; that there will be an expansion in geographical areas by national retailers carrying the Company’s products; that there will be an expansion into new national and regional grocery retailers; that there will not be interruptions on production of the Company’s products; that there will not be a recall of products due to unintended contamination or other adverse events relating to the Company’s products; and that the Company will be able to obtain additional capital to meet the Company's growing demand and satisfy the capital expenditure requirements needed to increase production and support sales activity. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, governmental regulations being implemented regarding the production and sale of alkaline water or any other products, including products containing CBD/hemp; the fact that consumers may not embrace and purchase any of the Company’s infused water products; the fact that the Company may not receive approval for any of its CBD infused products; the fact that even though the Farm Bill was passed into law, the Company may not receive approval from state and local regulatory bodies or the FDA for its CBD/hemp-infused products; additional competitors selling alkaline water and enhanced water products in bulk containers reducing the Company’s sales; the fact that the Company does not own or operate any of its production facilities and that co-packers may not renew current agreements and/or not satisfy increased production quotas; that fact that the Company has a limited number of suppliers of its unique bulk bottles; the potential for supply chain interruption due to factors beyond the Company’s control; the fact that there may be a recall of products due to unintended contamination; the inherent uncertainties associated with operating as an early stage company; changes in customer demand and the fact consumers may not embrace enhanced water products as expected or at all; the extent to which the Company is successful in gaining new long-term relationships with new retailers and retaining existing relationships with retailers; the Company’s ability to raise the additional funding that it will need to continue to pursue its business, planned capital expansion and sales activity; competition in the industry in which the Company operates and market conditions. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by applicable law, including the securities laws of the United States and Canada. Although the Company believes that any beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Readers should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in the reports and other documents the Company files with the SEC, available at www.sec.gov, and on the SEDAR, available at www.sedar.com.
The Alkaline Water Company Inc.
Richard A. Wright
President and CEO
Elev8 New Media
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Released February 14, 2019