The Undervalued Player Sweeping the Industry
This booming $20.3 billion bottled water market has made a massive shift thanks to a trend that has swept the nation.
The value-added water industry has taken over the bottled water industry, as sales of alkaline water and vitamin water have skyrocketed in recent years.
That’s because the health and wellness movements are making people more aware than ever of the quality of the foods and beverages they’re putting in their bodies.
And that’s why with soda sales declining, many major beverage companies are jumping on board this healthy trend that’s sweeping the nation.
- Keurig Dr. Pepper, for example, acquired the water company, Bai, for an incredible $1.7 billion in 2016.
- Coca-Cola has jumped in with several moves of their own, including the acquisition of Vitamin Water for $4.2 billion in 2007.
- Now, Nestle has acquired the beverage company, Essentia, for what some believe will be in the ballpark of around $1 billion.
But now one hidden gem may be taking over the industry with their latest moves.
Compared to its peers, The Alkaline Water Company’s shares are trading at a deep discount.
That’s especially true when you consider that they’re the largest independent alkaline water company in the country.
And they’re outpacing their closest competitor by a whopping 5X.
But when you look at the valuations of other public companies in this space, you can see the incredible potential in the market as they continue to make major moves.
Guru Energy has risen in popularity to reach a market cap of $475 million today.
Celsius Holdings boasts a market cap of $4 billion thanks to the success of their energy drink.
Download our special report to learn how early investors could profit from The Alkaline Water Company’s rapid expansion
But news set to come out related to Flow Water could soon show the true potential of Alkaline Water.
Flow is set to go public shortly. And if they’re priced with a market cap of between $300 million and $400 million while having HALF the sales of Alkaline Water…
That could put the markets in a position to re-assess the value of this market leader.
That’s because with consensus revenues for the year at around $64 million, Alkaline Water is currently valued at just $112 million.
But once investors catch on to what they’re up to, it could send shares marching higher.
Alkaline Water has already made quite the name for themselves throughout the water industry.
With their products stocked in shelves in 75,000 stores throughout the U.S., you can find their products at nearly all the top grocery and retail chains.
That includes Walmart, CVS, Family Dollar, Publix, Albertsons/Safeway, Kroger, Whole Foods, Sprouts, H-E-B, and countless others.
It’s this kind of movement that has made them the only enhanced water company in the top 10 that has grown double-digits in units and sales volume over the last 52 weeks.
And while many businesses experienced a difficult year in 2020 because of the pandemic, Alkaline Water thrived.
Because their domestic supply chain helped them keep up with the growing demand, they were able to gain a massive lead over their competitors.
That’s why over the last year, their 1-gallon bottles had the greatest unit growth of any value-added water product in the United States.
And as they’ve continued to grow bigger and bigger over the last 2 years, there’s been one consistent key to their success.
Innovating into Fast-Moving Markets
So how have they managed to maintain this incredible growth rate while others struggled?
A few short years ago, they only had 2 bottles of water on their product lines.
Fast forward to today, and they’ve added flavors, sustainable bottling, and exciting new product lines.
For their Alkaline88 products, they now have flavors available in Blood Orange, Lemon, Lemon-Lime, Peach Mango, Watermelon and Raspberry.
They’ve also added recyclable aluminum bottles to add an eco-friendly touch that many competitors are missing.
They went from using the highest quality recyclable plastic bottles to now adding an assortment of eco-friendly products.
We’ve already seen that as the healthy living trend has continued, more and more people care about the quality of the products they put in their bodies.
But just as importantly, millennials now care more than ever about the impact they have on the environment.
And they’re proving that they’re more than willing to pull out their wallets to support companies that share their values.
Plus, in staying with their constant thread of innovation, Alkaline Water has spotted a new, exciting opportunity for growth.
As the CBD ingestible market has taken off, it’s expected to become over a $6 billion market in the USA by 2023.
That’s why several alcoholic beverage companies are making the leap to invest in or add CBD drinks to their product lines.
- Molson Coors, for example, announced a joint venture with cannabis company, Hypothecary Corporation.
- Heineken’s subsidiary, Lagunitas Brewing, launched their own cannabis-infused beer in 2018.
- And industry heavyweight Anheuser-Busch InBev even invested $50 million in a joint venture with Tilray.
Across the country, we’re seeing more and more stores opening up selling CBD ingestibles – including drinks, gummies, oils, and capsules.
And as major states like California, New York, and even Texas have become increasingly friendly toward CBD products, it’s created a massive market.
In those states alone, that adds 100 million Americans who are now able to buy Alkaline Water’s new A88CBD products.
That includes CBD-infused waters, gummies, and even skincare products.
Read our exclusive report to see why The Alkaline Water Company’s could soon become a major player in this growing corner of the $19.4 billion water industry
With this massive opportunity, their new line could be featured in up to 2,000 brick-and-mortar stores by the end of the year.
And with the rise of cannabis ETFs like MSOS and YOLO, this could become another prime opportunity for Alkaline Water to gain the recognition they deserve if they were to get added.
They’ve already managed to sell $200 million worth of products just by word-of-mouth alone.
But they could see another boost this summer as they’re set to roll out a national marketing campaign.
Especially when you pair that with their recent expansion internationally, starting with the addition of their products in Tiendas Sindicales, the Mexico-based superstore grocery chain.
Compared to others in the market being valued several times higher, it’s clear that The Alkaline Water Company is the best-kept secret in this growing industry.
But once people catch on as they continue to innovate and expand their footprint, it could soon have a massive impact on their shares.
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