The Alkaline Water Company to Focus on A88CBD™ Growth Strategy in California in Response to Assembly Bill 45

Rhea-AI Summary

The Alkaline Water Company (WTER) announced the launch of its A88CBD™ functional waters in California following the passage of Assembly Bill 45. This new line includes six flavors, each containing 25mg of CBD, and will leverage innovative packaging technology. The company has received exceptional responses from major retailers and expects to see these beverages on store shelves soon. With a strong reputation in California's alkaline water market, WTER aims to capture a significant share of the emerging CBD beverage sector.

Positive

• Introduction of A88CBD™ functional waters, expanding product offerings.
• Strong pre-launch interest from major retailers in California.
• Utilization of innovative Vessl® technology for fresh product infusion.
• The company has a well-established brand presence and reputation in California.

Negative

• None.

California Assembly Bill 45 (AB45) Opens up A88CBD™ Beverages to Over 21 Million Adults in the Golden State

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 it will begin sales in California of its 6 new A88CDB™ functional waters after passage of Assembly Bill 45 in the Golden State. The 6 natural, functional A88CBD waters—Relax, Refresh, Resistance, Relief, Reenergize, and Rest—will be sold through A88 Infused Products Inc., a wholly-owned subsidiary of the Company. The product’s innovative packaging utilizes a pressurized Vessl® closure containing 25mg of CBD and the other functional vitamins and ingredients, which freshly infuse at 110psi into the alkaline water as the consumer twists open the bottle. Californians will be able to enjoy A88CBD™ before the end of the year.

With the passage of Assembly Bill 45, A88CBD™ functional waters will soon be available in California. (Photo: Business Wire)

“For nine years, Alkaline88® has been a top-selling alkaline water in California with an extensive retail footprint in virtually all major and independent supermarkets. In more recent years, we’ve also seen a rapidly expanding C-Store presence in the Golden State. Over the last two weeks we have successfully launched our 6 functional A88CBD™ waters at two major trade shows. The Vessl® technology and AB45 both created buzz at both shows,” said Ricky Wright, President and CEO of The Alkaline Water Company. “Hundreds of buyers came to see us, many of whom already know and trust Alkaline88® for providing great products and great service. The positive reputation our performance has earned us throughout California will give us a huge competitive advantage with these buyers as we enter into the functional CBD water space.”

“We have begun to receive orders from a number of major retailers in California. Response from buyers has been exceptional and we expect to be on store shelves soon. Since 2018, we have been working diligently to make sure our A88CBD™ beverages are the best in the country. Not only do we have ‘fresher ingredients and fresher flavor,’ but our manufacturing practices and formulations meet or exceed the California regulatory requirements,” continued Mr. Wright. “With our delicious taste, our 25mg of hemp-derived CBD and functional ingredients in each bottle, and the Vessl® technology, we expect to gain a significant share of the CBD beverage market in California. As the regulatory landscape changes to allow the rest of the country to open up to CBD beverages, A88CBD™ will lead the way.”

California retailers interested in ordering A88CBD™functional water should contact National Director of Sales, Ryan Chessman, at ryanchessman@alkaline88.com

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.

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 the Company focuses on California to lead A88CBD™ functional water sales; that the Company will begin sales in California of its 6 new A88CDB™ functional waters and Californians will be able to enjoy A88CBD™ before the end of the year; that the positive reputation the Company’s performance has earned it throughout California will give the Company a huge competitive advantage with these buyers as the Company enters into the functional CBD water space; that the Company expects its A88CBD™ beverages to be on store shelves in California soon; that the Company expects to gain a significant share of the CBD beverage market in California; and that as the regulatory landscape changes to allow the rest of the country to open up to CBD beverages, A88CBD will lead the way.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211019005450/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 does the passage of Assembly Bill 45 mean for WTER?

The passage of Assembly Bill 45 allows WTER to sell its A88CBD™ functional waters to over 21 million adults in California.

When will A88CBD™ functional waters be available for purchase?

WTER expects A88CBD™ functional waters to be available on store shelves in California before the end of the year.

What flavors are included in the A88CBD™ product line?

The A88CBD™ product line includes six flavors: Relax, Refresh, Resistance, Relief, Reenergize, and Rest.

How much CBD is in each A88CBD™ beverage?

Each A88CBD™ beverage contains 25mg of hemp-derived CBD.

What is the significance of the Vessl® technology used in A88CBD™ products?

The Vessl® technology allows for the infusion of functional vitamins and CBD into the water at the moment of consumption, ensuring freshness.