Alkaine88® Earns Full Distribution in Major Wholesale Club with over 220 Locations on the East Coast

Rhea-AI Summary

The Alkaline Water Company (NASDAQ: WTER) announced its rapid expansion into over 220 clubs of the third-largest warehouse chain in the U.S., marking a significant milestone in its distribution strategy. Within 14 months, Alkaline88 has gained distribution in two of the three major wholesale club chains. The company’s 1-gallon four pack is now the best-selling bulk-size premium water product in the country. Strengthened production efforts are expected to improve freight costs and distribution efficiency, enhancing overall profitability.

Positive

• Expanded distribution to over 220 clubs in the third-largest warehouse chain.
• Alkaline88 is the best-selling bulk-size premium water product.
• Favorable distribution economics with full truckloads to high-volume clubs.
• Strengthened production could lower costs and increase sales.

Negative

• None.

A Recent Trial Quickly Led to Full Distribution of Alkaline88 in this High-Volume Warehouse Club Chain

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the “Company”), the country’s largest independent alkaline water company and the Clean Beverage^® company, today highlighted Alkaline88’s rapid expansion into the club channel, including its recent expansion into over 220 clubs of the country’s third-largest warehouse club chain. In less than fourteen months, the brand has made inroads into all three of the top warehouse membership clubs in the United States.

• In the past year, the Alkaline88® 1 gallon 4 pack has earned distribution in two out of the three major wholesale club chains and is also available in select Business Centers of the third.
• Distribution economics are favorable in the club channel, with full truckloads heading to relatively few distribution centers that then deliver full pallets to these high-volume clubs.
• The Alkaline88® 1 gallon is already the country’s best-selling bulk-size premium water product.

“Our most recent 48-store regional trial in the club channel has expanded into full distribution in a very short time,” said Frank Lazaran, President and CEO of The Alkaline Water Company. “We’re very pleased with how quickly our 1-gallon four pack has been greenlit for sale to all 6.5 million members in over 220 clubs across 17 states. This is the second of the three major clubs in which we’ve earned full distribution in the past year. We also recently announced that we now have our ‘foot in the door’ in the third and largest club chain and we’ll continue to work on that front.

“The recent work we’ve done to strengthen our production and distribution will support Alkaline88’s expansion into the club and other channels in growth markets across the country. Optimizing our network to produce our products closer to important high-volume retailers means we’re spending less on freight and moving more of our best-selling products in bulk. These are both great factors for the improvement of our bottom line, even as we continue to earn new clients and drive new sales.”

About The Alkaline Water Company:

The Alkaline Water Company is the Clean Beverage^® company making a difference in the water you drink and the world we share.

Founded in 2012, The Alkaline Water Company (NASDAQ and CSE: WTER) is headquartered in Scottsdale, Arizona. Its flagship product, Alkaline88®, is a leading premier alkaline water brand available in bulk and single-serve sizes along with eco-friendly aluminum packaging options. With its innovative, state-of-the-art proprietary electrolysis process, Alkaline88® delivers perfect 8.8 pH alkaline drinking water with trace minerals and electrolytes and boasts our trademarked label “Clean Beverage.” 2021, The Alkaline Water Company was pleased to welcome Shaquille O’Neal to its board of advisors and to serve as the celebrity brand ambassador for Alkaline88^®.

Company’s products online, visit us at www.alkaline88.com.

To learn more about The Alkaline Water Company, please visit www.thealkalinewaterco.com or connect with us 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, that the Company will continue to work on the third and largest club chain; that the recent work the Company has done to strengthen its production and distribution will support Alkaline88’s expansion into the club and other channels in growth markets across the country; and that spending less on freight and moving more of the Company’s best-selling products in bulk are both great factors for the improvement of the Company’s bottom line, even as the Company continues earn new clients and drive new sales.

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 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; 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221004005313/en/

The Alkaline Water Company Inc.

Jeff Wright

Director of Investor Relations

866-242-0240

investors@thealkalinewaterco.com

Media

Jessica Starman

888-461-2233

jessica@elev8newmedia.com

Source: Alkaline Water Company Inc.

FAQ

What recent milestone did The Alkaline Water Company achieve in distribution?

The Alkaline Water Company expanded distribution to over 220 clubs of the third-largest warehouse chain in the U.S.

How has Alkaline88 performed in the warehouse club market?

Alkaline88 has gained distribution in two of the three major wholesale club chains.

What product is Alkaline88 known for?

Alkaline88 is recognized as the best-selling bulk-size premium water product in the country.

What are the expected benefits of Alkaline Water Company's strengthened production?

Strengthened production is expected to lower freight costs and improve distribution efficiency.

What is the stock symbol for The Alkaline Water Company?

The stock symbol for The Alkaline Water Company is WTER.