The Alkaline Water Company Adds New State-of-the-Art Midwest Copacker, Century Springs

Rhea-AI Summary

The Alkaline Water Company (NASDAQ: WTER) has commenced production at the Century Springs facility in Wauwatosa, Wisconsin. This new plant will enhance the production capacity of Alkaline88 while reducing freight costs and environmental impact. CEO Frank Lazaran highlighted significant growth potential in the Midwest market. The company aims to offset rising costs through optimizing raw material sourcing and copacking partnerships, pursuing a strategy focused on revenue growth and a path to profitability.

Positive

• Increased production capacity at Century Springs facility.
• Reduction in freight costs and carbon footprint.
• Strategic expansion into the Midwest market.
• Growing sales driven by organic growth and new retail clients.

Negative

• None.

Alkaline88^® Increases Capacity and Reduces Freight Costs with the Addition of Century Springs near Milwaukee, Wisconsin

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 announced the start of production of Alkaline88^® in state-of-the-art copacking plant Century Springs in Wauwatosa, Wisconsin. The plant’s large and small bottle lines will increase production capacity for the Company while its geographic location will decrease costs and carbon footprint associated with freight.

“Century Springs will be producing Alkaline88^® in the Midwest region for the first time in our company’s history,” said Frank Lazaran, President and CEO of The Alkaline Water Company. “This state-of-the-art facility outside of Milwaukee will provide a strategic production center for Alkaline88^® and support further expansion in a market where we see significant upside for growth.

“Alkaline88 is being produced around the country by a strong network of copacking partners. This network supports increasing sales that are being driven by organic growth, SKU expansion, and new retail clients. While industries around the country are facing inflationary pressure, we continue to optimize our network of raw materials manufacturers and copackers to partially offset the increasing costs associated with freight. This is part of a broader company-wide strategy to continue to drive topline revenue growth while striving to put the company on a pathway to profitability.”

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 “Clean Beverage” label. In 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^®.

To purchase The Alkaline Water 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.

About Century Springs:

Century Springs, located in the upper Midwest, is a bottler and distributor of spring water and other products to Businesses, Homes & Retailers. Their copacking division, Midwest Co-Packing produces functional beverages in premium bottles and packaging for private label, store brands and national brands.

To learn more about Century Springs, please visit www.centurysprings.com, www.midwestcopacking.com or connect with them on Facebook 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 plant’s large and small bottle lines will increase production capacity for the Company while its geographic location will decrease costs and carbon footprint associated with freight; that this state-of-the-art facility outside of Milwaukee will support further expansion in a market where the Company sees significant upside for growth; and a broader new company-wide strategy to continue to drive topline revenue growth while striving to put the Company on a pathway to profitability.

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 copacking facilities can be maintained or increased; that there will be increased production capacity through implementation of new production facilities, new copackers 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 copackers 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/20220630005158/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: The Alkaline Water Company Inc.

FAQ

What is the significance of the Century Springs facility for Alkaline88?

The Century Springs facility increases production capacity for Alkaline88 and reduces freight costs, allowing the company to better serve the Midwest market.

How will the new production facility impact Alkaline Water Company's costs?

The facility's geographic location will lower freight costs and carbon footprint, which could improve overall profitability.

What are the expected benefits of the new co-packing plant for WTER stockholders?

The new co-packing plant is expected to drive topline revenue growth and support the company's path to profitability.

When did Alkaline Water Company start production at Century Springs?

Production at the Century Springs facility began recently, marking a new chapter for Alkaline88's manufacturing capabilities.

What products are produced at the Century Springs facility?

The facility will produce Alkaline88 in both large and small bottle sizes.