The Alkaline Water Company Continues Exponential Growth in Convenience Store Channel
Alkaline88® is now available in over 5,000 convenience stores, up 10-fold since the beginning of the year
SCOTTSDALE, Ariz., Oct. 24, 2019 (GLOBE NEWSWIRE) -- The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER) (the “Company”), a producer of premium bottled alkaline drinking water and flavored water sold under the brand name Alkaline88®, today announced continued solid progress toward its convenience store growth strategy. In addition, the company added the nation’s two largest convenience store distributors which collectively represent approximately a 60% potential reach into total convenience stores across the U.S.
“Our effort to establish our leading brand Alkaline88® into as many as 150,000 convenience stores nationwide continues to gain momentum. Since the beginning of the calendar year, we have partnered with some of the leading national channel players, expanded our lineup of infused products, and initiated marketing and branding initiatives. Adding two of the nation’s largest distributors to our growing list of c-store channel partners is significant not only because of their reach but also because they added various SKUs including flavored infused water to their product mix. These efforts are helping to address our main strategic objective of establishing our brand while growing our national footprint. In addition, c-stores have also been early adopters of CBD products and we hope to leverage our growing network of channel partners to increase the speed to market of our new line of topical products,” stated Richard A. Wright, president, and chief executive officer of The Alkaline Water Company, Inc.
In February 2019, Alkaline88® initiated an aggressive growth strategy which identified the convenience store channel expansion as a key priority for its fiscal year 2020. The company’s strategy is primarily split between two leading brokers, E.A. Berg Associates, and Crossmark Inc., which are effectively addressing a potential opportunity of approximately 150,000 convenience stores nationwide.
E.A. Berg’s efforts are focused on the small convenience stores chains targeting Northern California, Southern California, and the Texas cities of Houston, Austin, Dallas, and San Antonio. This engagement also provides a unique Van Program which brings 22 sales representatives in customized vans prominently displaying the Alkaline88® logo across the territory with additional support team focused on distribution and sell-through activity. The E.A. Berg partnership has delivered very strong results and since inception they have accounted for approximately 3,800 new convenience store wins. As a result of this, our product is now offered by 13 wholesale distributors, servicing over 30,000 convenience stores, and available to over 68 million people in California and Texas.
Photos of the E.A. Berg Van Program can be viewed here: https://www.globenewswire.com/NewsRoom/AttachmentNg/ea04ff59-a390-4dfe-a2eb-b45059d95da5
Crossmark’s efforts are focused on larger convenience store chains, typically representing franchises of 50 or more stores. As an international broker, the firm has national reach with established relationships and in-depth knowledge of retailers, major retail channels, and product categories. Crossmark was added to the convenience store strategy mid-year, however, they are making a strong impact helping Alkaline88® extend coverage and market penetration. Over a relatively short period, this channel partner has delivered strong results helping to forge relationships with national wholesalers and distributors serving 1000’s of retail stores.
The Company intends to comply in full with all federal, state, and local laws, rules, and regulations as the Company develops its CBD-infused products. The Company will not pursue the commercial production or sale of CBD-infused products until legally permitted. The Company is closely watching and responding to all regulatory developments within the FDA and in each individual U.S. state, and plans to launch its CBD infused products accordingly.
About The Alkaline Water Company Inc.
The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER) is a leading producer of premium bottled alkaline drinking and flavored water sold under the brand name Alkaline88®. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88® delivers perfect 8.8 pH balanced alkaline drinking water with trace minerals and electrolytes. The Company recently announced a broad line of CBD infused products which include ingestibles and topical products. For its ingestibles line, the A88 Infused Beverage Division Inc. produces CBD infused drinks, beverage shots, tinctures, capsules, and powder packs. For its topicals line, A88 Infused Products Inc. produces salves, balms, lotions, essential oils, and bath-salt all made with lab-tested full-spectrum hemp. The Alkaline Water Company Inc. is currently pursuing a national multi-channel, mass-market expansion strategy with a direct-to-warehouse model and co-packaging facilities that are strategically located 600 miles within 95% of the U.S. population. Founded in 2012, the Company is headquartered in Scottsdale, Arizona. To learn more about The Alkaline Water Company, please visit www.thealkalinewaterco.com or connect on Facebook, Twitter, Instagram or LinkedIn.
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 the Company’s channel partners represent approximately a 60% potential reach into total convenience store locations across the U.S.; the Company’s effort to establish the Company’s leading brand Alkaline88® into as many as 150,000 convenience stores nationwide; the main strategic objective of establishing the Company’s brand while growing the Company’s national footprint; that the Company hopes to leverage its growing network of channel partners to increase the speed to market of its new line of topical products; the Company’s identification of the convenience store channel expansion as a key priority for its fiscal year 2020; and the Company’s potential opportunity of approximately 150,000 convenience stores nationwide.
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-infused products; 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 be an expansion into new e-commerce, home delivery, convenience, and healthy food channels; 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 hemp/CBD; the fact that consumers may not embrace and purchase any of the Company’s CBD-infused products; the fact that the Company may not be permitted by the FDA or other regulatory authority to market or sell any of its CBD-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; the 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 that 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; and 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
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 October 24, 2019