The Alkaline Water Company Enjoys Success in Preliminary Direct Store Delivery Rollout

Rhea-AI Summary

The Alkaline Water Company (NASDAQ: WTER) reported significant early success from its preliminary Direct-Store-Delivery (DSD) partnerships. This initiative, involving Hensley Beverage, Nevada Beverage, and Mahaska, has added thousands of convenience stores to its retail footprint. Notably, sales through Hensley reached 578% of the Q2 forecast for fiscal 2022, highlighting robust brand penetration. The company aims to expand its presence further in the C-store channel, currently serving less than 20% of the market, valued at $1.4 billion last year, and is exploring additional DSD networks in the Northeast and Northwest.

Positive

• Preliminary DSD partnerships have significantly expanded retail presence.
• Sales through Hensley Beverage exceeded forecasts by 578% for Q2 fiscal 2022.
• Growth in brand velocity and overall sales in the convenience store channel.

Negative

• None.

Alkaline88’s Pilot DSD Program Has Led to Strong C-Store Expansion

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, announced today that its preliminary Direct-Store-Delivery programs with Hensley Beverage, Nevada Beverage, and Mahaska have shown impressive early success, adding thousands of convenience stores to the brand’s retail footprint.

“Our Direct-Store-Delivery partnerships are already exceeding expectations,” said Ricky Wright, President and CEO of The Alkaline Water Company. “As one example, sales through Hensley were 578% of what we forecasted for Q2 of fiscal 2022. We’re very pleased with this early DSD success, which has played a huge roll in increasing our presence, brand velocity, and overall sales in the convenience store channel. The power of a DSD network means that Alkaline88^® can now be found in premium c-store chains and independent stores throughout these regions.”

In addition to shelf-presence in hundreds of independent convenience stores in the Southwest, Alkaline88 is now available in premium chains in Arizona and Nevada like QT, Speedee Mart, Cobblestone, Get-N-Go, The Carioca Co., Pit Stop, Super Pumper, and others. Well over a thousand high-volume convenience stores within the DSD footprint have recently begun to carry Alkaline88 single-serve bottles.

“Having DSD partners has allowed us to leverage their reputation to introduce our brand to new buyers,” continued Mr. Wright. “From there, our portfolio of superior products has earned us shelf space in convenience and mom-and-pop stores across Nevada, Arizona, and the Midwest. Additionally, a number of premium retailers outside of the c-store channel have switched to our DSD partners, so shoppers will begin to see more Alakline88 endcap displays and an all-around better brand presence in some of their favorite stores.

“We are optimistic for the future. We have received authorization from many premium c-store chains and are awaiting their resets to further increase our c-store footprint within our DSD network. We are currently in less than 20% of the C-stores across the country, where over 1.4 billion dollars of enhanced water was sold last year, so we see a lot of potential in this channel. Based on the success we are seeing from DSDs in increased revenue and brand penetration, we are currently evaluating adding additional DSD networks in the Northeast and Northwest.”

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 balanced alkaline drinking water with trace minerals and electrolytes and boasts our trademarked label “Clean Beverage.” Quickly being recognized as a growing lifestyle brand, The Alkaline Water Company created the A88 Infused Beverage Division in 2018 to meet consumer demand for flavor-infused products under the A88 Infused™ brand. A88 Infused™ flavored water is available in six unique all-natural flavors, with new flavors coming soon. 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 the Alkaline88^® and A88 Infused™ brands.

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.

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 shoppers will begin to see more Alakline88 endcap displays and an all-around better brand presence in some of their favorite stores; that the Company is optimistic for the future; that Company is awaiting premium c-store chains’ resets to further increase the Company’s c-store footprint within its DSD network; that the Company sees a lot of potential in the C-store channel; and that the Company is currently evaluating adding additional DSD networks in the Northeast and Northwest.

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/20211130005159/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 were the sales results for Alkaline Water Company through Hensley Beverage?

Sales through Hensley Beverage reached 578% of the forecast for Q2 of fiscal 2022.

What are the expansion plans for Alkaline Water Company in the convenience store segment?

The company aims to increase its C-store footprint and is evaluating additional DSD networks in the Northeast and Northwest.

How many convenience stores now carry Alkaline88 products?

Alkaline88 products are now available in thousands of convenience stores across the Southwest.

What is the market size of the enhanced water sector for C-stores?

The C-store channel for enhanced water products is valued at over $1.4 billion.

What brands has Alkaline Water Company gained shelf space in?

Alkaline88 is now available in premium chains like QT, Speedee Mart, and Cobblestone.