The Alkaline Water Company continues growth boom with major discount retailer deal
The lifestyle water player, whose flagship A88 family of products took the retail world by storm in 2020, will now see its 3-liter offering and four A88-Infused flavored waters become available in all of 99 Cents Only’s locations across California and the Southwest.
With 99 Cents Only operating hundreds of stores across four US states, the freshly-signed deal marks an inflection point for Alkaline Water’s (NASDAQ:WTER | CSE:WTER) aggressive expansion strategy in the specialty discount retail channel.
The company’s small and large-format products are now available in over 8,000 discount retail stores across the US. This includes sites owned by neighbourhood chain Family Dollar.
From here, all of the NASDAQ-listed growth champion’s efforts will focus on converting its strong sales pipeline to increase this figure and boost revenues even further. As company president and CEO Ricky Wright put it:
“WE ARE PLEASED TO ANNOUNCE THAT OUR FLAGSHIP BRAND AND FOUR OF OUR POPULAR FLAVORS WILL BE OFFERED BY ANOTHER EXCITING BANNER IN THE SPECIALTY DISCOUNT RETAIL CHANNEL.
“OUR EARLIER WINS IN THIS CHANNEL ARE SEEING GOOD MOMENTUM WITH CONSISTENT REPEAT ORDERS. AS A TRUSTED NATIONAL BRAND, IT IS ENCOURAGING TO SEE OUR BRAND EXTENSION STRATEGY IN PLAY, AS OUR NEW AND INNOVATIVE OFFERINGS ARE CREATING LARGER OPPORTUNITIES FOR OUR TEAM.“
“THE SPECIALTY DISCOUNT CHANNEL PRESENTS A TREMENDOUS OPPORTUNITY FOR OUR GROWING LIFESTYLE BRANDS AND WE EXPECT TO ADD ANOTHER 6,000 TO 8,000 NEW STORE LOCATIONS OVER THE NEXT 12-18 MONTHS.”
READ OUR SPECIAL REPORT – FOR A DEEP DIVE INTO HOW THE ALKALINE WATER COMPANY CAPTURED HUGE MARKET SHARE DURING COVID-19
Rapid expansion poised to continue in 2021
Alkaline Water (NASDAQ:WTER | CSE:WTER) has made a name for itself as the leading producer of premium bottled alkaline water, flavor-infused waters, and CBD-infused products. Together, they are sold under the brand names Alkaline88®, A88 Infused™, and A88CBD™, respectively.
Aggressive product expansion has been part of the firm’s growth blueprint since it began. And with the company now positioned to build on the record-breaking success it enjoyed last year, these years of strategizing are bearing serious fruit for investors.
Beyond its flagship beverage brands, Alkaline Water (NASDAQ:WTER | CSE:WTER) has huge plans to expand its series of CBD-infused products in 2021. This is an area Wright expects to do “exceptionally well” under a Biden presidency and Democrat-controlled Senate.
The federal decriminalization of cannabis — passed by sweeping reforms in Congress in December 2020 but all-but doomed with a Republican Senate majority — is now back in play.
“THIS POTENTIALLY OPENS UP EVER GREATER ACCEPTANCE FROM THE BIGGEST BILLION-DOLLAR CHAINS IN THE US TO CDB PRODUCT LINES, AND IT’S NOW A MATTER OF WHEN RATHER THAN IF THAT HAPPENS,” WRIGHT NOTED TO US. “THIS COULD WELL BE THE REAL CBD BREAKTHROUGH YEAR, AND THE WAY WE’RE ALREADY POSITIONED BOTH IN BOTH E-COMMERCE AND BRICK AND MORTAR STORES SETS US UP TO LEAD AND SUCCEED.”
ALKALINE WATER’S BRIGHT FUTURE
In fiscal 2020, the business reported its highest ever annual revenues despite the onset of the COVID-19 pandemic. In March and April 2020, year over year sales growth smashed all previous records at 114% and 171% respectively.
The firm stole a march on its peers by creating deeper product lines, engineering faster scale-up targets, expanding its broker network, hiring new staff to cope with demand, and launching a public-facing e-commerce store.
As of September 30, 2020, which represents the company’s second fiscal quarter, revenue was $10.8 million while earnings per share shot up by 14.3% year-on-year and purchase orders hit the second-highest level in the company’s history.
The company also added over 1,000 nationwide store locations for its A88 lifestyle brands, while Nielsen data pegged Alkaline88 as the fastest-growing value-added water product across 13-week, 26-week and 52-week periods.
For fiscal 2021, the company is now guiding revenues in the range of $48 million to $52 million, representing year-on-year growth of between 17% and 27%.
FOR A DETAILED LOOK AT THE ALKALINE WATER COMPANY’S MOVE INTO THE VAST HOSPITALITY AND CBD SPACES. READ OUR SPECIAL REPORT
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