Alkaline88® Adds New Natural and Organic Products Distributor, Valu Merchandisers Company (VMC); Provides Update on the Eco-Friendly Aluminum Bottles

Rhea-AI Summary

The Alkaline Water Company (NASDAQ: WTER) has announced its partnership with Valu Merchandisers Company (VMC) to distribute its products in the Midwest and Southern U.S. VMC services over 3,800 supermarkets, enhancing Alkaline88's reach. Additionally, H-E-B stores in Texas will feature Alkaline88 aluminum bottles in 288 locations. Initial orders from distributors KeHE and UNFI have been strong, and the company anticipates a solid revenue contribution from its aluminum bottle line in fiscal 2021. The reusable water bottle market is projected to grow to $1.5 billion by 2025.

Positive

• Partnership with VMC expands distribution reach to over 60,000 grocery stores.
• Alkaline88 aluminum bottles now available in 288 H-E-B Texas stores.
• Strong initial orders from distributors KeHE and UNFI.
• Anticipated solid revenue contribution from aluminum bottle sales in fiscal 2021.

Negative

• None.

• VMC services more than 3,800 independently owned supermarkets in 35 states.
  
• Alkaline88® aluminum bottles are now available at H-E-B in 288 U.S. stores.      
• Initial orders from KeHE and UNFI strong out of the gate.

SCOTTSDALE, Ariz., Sept. 10, 2020 (GLOBE NEWSWIRE) -- The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the “Company”), is a producer of premium bottled alkaline water, flavor-infused waters, and CBD infused products sold under the brand names Alkaline88^®, A88 Infused^™, and A88CBD^™, respectively. Today, the Company announces that it has added Valu Merchandisers Company (VMC) as a distributor covering Midwest and Southern states.  The Company also announces that H-E-B will now carry Alkaline88 aluminum bottles in 288 stores across Texas and that it sees strong initial orders from KeHE and UNFI that recently agreed to carry the Alkaline88® eco-friendly aluminum bottles.

“It is exciting to see momentum build around our eco-friendly and truly sustainable aluminum bottles,” stated Ricky Wright, President and CEO of The Alkaline Water Company. "Since its launch earlier this year, we have seen growing consumer demand for the product and see it as a perfect fit in the all-natural and organic channel. With UNFI and KeHE already carrying this line, the addition of VMC as a channel partner further strengthens our position in this category. VMC is one of the largest providers to more than 3,800 independently owned supermarkets, with a concentrated footprint in the Midwest and Southern markets. Our recent partnerships now give us reach into over 60,000 regional, national, and independently owned grocery stores for our eco-friendly aluminum bottles. This positions us firmly to capture growth in the reusable water bottle market segment, which is expected to reach $1.5 billion by 2025.”

According to statista.com, the value of the U.S. reusable water bottle market stood at just over $1 billion U.S. dollars in 2018 and will reach roughly $1.5 billion by 2025. By then, the value of each of the material types used to create reusable water bottles (plastic, metal, glass, and silicone) is also projected to grow. The plastic reusable water bottle market is set to expand the most, reaching roughly $530 million U.S. dollars in 2025.    

“Also, we are thrilled to announce that our long-standing partner H-E-B, a leading upscale Texas supermarket, is now carrying our Alkaline88^® eco-friendly bottles across a majority of its U.S. stores. We recently delivered our aluminum bottles to their stores across the Texas market and are excited to see our lifestyle brands see increased shelf-space at this valued customer. Also, we are seeing strong initial orders from recently added distributors KeHE and UNFI, which we expect to further ramp in the coming months. In addition, driven by consumer interest, we will now be offering our aluminum bottles in 12-pack cases, which should further appeal to certain channel partners. Overall, we are pleased with this offering and anticipate this line to be a solid revenue contributor during our fiscal 2021,” concluded Mr. Wright.

A Media Snippet accompanying this announcement is available by clicking on the image or link below:

Valu Merchandisers Company (VMC)

VMC, founded in 1995, is a wholly-owned subsidiary of Associated Wholesale Grocers, Inc. based in Kansas City, KS. VMC is the leader in the procurement and marketing of Health, Beauty & Wellness, General & Seasonal Merchandise, Natural, Organic and Specialty Food, and Pharmacy programs because they satisfy the highest standards for a quality product at the lowest cost of goods. VMC services more than 3,800 supermarkets in 35 states through a portfolio of more than 40,000 SKUs in two distribution centers.

The Alkaline Water Company

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 balanced alkaline drinking water with trace minerals and electrolytes and boasts our trademarked label ‘Clean Beverage.’ Quickly being recognized as a growing lifestyle brand, Alkaline88® launched A88 Infused™ in 2019 to meet consumer demand for flavor-infused products. A88 Infused™ flavored water is available in six unique all-natural flavors, with new flavors coming soon. Additionally, in 2020, the Company launched A88 Infused Beverage Division Inc., which includes the Company’s CBD water and flavor-infused water. For the Company’s topical and ingestible offerings, A88 Infused Products Inc. includes both the Company’s lab-tested full-spectrum hemp salves, balms, lotions, essential oils, and bath salts, along with broad-spectrum hemp beverage shots, powder packs, oil tinctures, capsules, and gummies.

To purchase A88CBD™ products online, visit us at www.A88CBD.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, the following: that H-E-B will now carry Alkaline88® eco-friendly aluminum bottles in 288 stores across Texas, that our recent partnerships position us firmly to capture growth in the reusable water bottle market segment; that the reusable water bottle market segment is expected to reach $1.5 billion by 2025; that the value of each of the material types used to create reusable water bottles (plastic, metal, glass, and silicone) is also projected to grow by 2025; that the plastic reusable water bottle market is set to expand the most, reaching roughly $530 million U.S. dollars in 2025; that we expect orders from KeHE and UNFI to further ramp in the coming months; that we will be offering our aluminum bottles in 12-pack cases; that our 12-pack cases should further appeal to certain channel partners; and that we anticipate our line of 12-pack cases to be a solid revenue contributor during our fiscal 2021.

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, 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, or

Sajid Daudi
Director of Investor Relations & Corporate Communications
800-923-1910
investors@thealkalinewaterco.com

Media

Jessica Starman
888-461-2233
jessica@elev8newmedia.com

FAQ

What is the significance of the Alkaline Water Company's partnership with VMC?

The partnership with VMC allows the Alkaline Water Company to distribute its products to over 3,800 supermarkets in the Midwest and Southern states, enhancing its market presence.

How many H-E-B stores are carrying Alkaline88 aluminum bottles?

Alkaline88 aluminum bottles are now available in 288 H-E-B stores across Texas.

What are the initial orders like from distributors KeHE and UNFI for Alkaline88 products?

The Alkaline Water Company reports strong initial orders from both KeHE and UNFI for its eco-friendly aluminum bottles.

What is the expected growth of the reusable water bottle market?

The reusable water bottle market is projected to grow to $1.5 billion by 2025.