The Alkaline Water Company Increases Production Capacity Significantly to Meet Demand
SCOTTSDALE, Ariz., April 20, 2020 (GLOBE NEWSWIRE) — The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER) (the “Company”), is a producer of bottled alkaline water, flavored-infused waters, and CBD infused products sold under the brand names Alkaline88®, A88 Infused™, and A88CBD™, respectively. The Company announces today that it has increased production capacity significantly to meet demand.
“We are pleased to report that our entire supply chain is running effectively. In recent weeks we have significantly increased throughput, and demand for our products is at an all-time high across all categories. Currently, we have eight strategically located co-packing facilities with ample capacity to support demand. In most cases, we are the largest customer of our co-packers nationwide. As such, our co-packers have increased dedicated line-time across our facilities. In addition, some of the plants and supply chain providers are running 24/7. We also plan to bring on a new plant in May to give us additional capacity to meet the upcoming summer demand. With bottled water considered an ‘essential’ item, all our facilities remain fully operational, and we are committed to playing our role in thwarting this global pandemic,” stated Richard Wright, President and CEO of The Alkaline Water Company.
The Alkaline Water Company now has eight co-packer partnerships across the entire country. The Company’s business model has given us the ability to meet increased demand extremely quickly and efficiently, enabling the Company to satisfy consumers and retailers. In addition, we now have doubled our supply chain capabilities and secured domestic suppliers for every component of our products.
“Also, we are extremely pleased to attract new capital to further our aggressive growth strategy during this challenging global environment. With robust demand for our core products, we are happy to report that the recent launch of our E-commerce platform, A88CBD.com, was a success. The initial customer feedback on our topical products has been very positive, and we see strong interest across our entire topicals line.”
“I can’t thank our domestic strategic supply chain partners enough as they have stepped up their efforts and ramped up resources to ensure production is running smoothly during this national crisis. The ability to adjust to our production capabilities to meet demand is a testament to our business model, the strength of our partners, and the resilience of our team,” Mr. Wright concluded.
“We are currently operating in unprecedented times, and are very aware of the challenges many of our consumers, retail partners, and shareholders could endure as a result of this challenging period,” added the Company’s Chairman of the Board of Directors, Aaron Keay. “The organic growth, convenience store strategy, and rollout of new national retailers are as strong as we have ever seen within the history of the Company. Last week, we delivered record numbers of products to major retailers across the country, including Walmart, Kroger, Albertsons/Safeway, Publix, HEB, Sprouts, as well as numerous local and regional chains. We are very well positioned in the water and CBD categories to fulfill our goal of becoming America’s trusted and go-to brand. In challenging economic times, we felt it’s important to thank our devoted colleagues, loyal shareholders, and dedicated industry partners as we look forward to executing upon these goals.”
About The Alkaline Water Company Inc.
The Alkaline Water Company Inc. (NASDAQ and TSXV: WTER) is a producer of bottled alkaline water, flavored-infused waters, and CBD infused products sold under the brand names Alkaline88®, A88 Infused™, and A88CBD™, respectively. 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. The Company recently announced a broad line of CBD infused products, which include ingestibles and topical products. For its ingestibles line, the A88 Infused™ Beverage Division Inc. intends to produce CBD infused drinks, beverage shots, tinctures, capsules, and powder packs. For its topicals line, the A88 Infused™ Products Inc. produces salves, balms, lotions, essential oils, and bath-salt all made with lab-tested full-spectrum hemp. To purchase A88CBD™ products online, visit us at www.A88CBD.com.
The Company intends to comply in full with all federal, state, and local laws, rules, and regulations as the Company develops its CBD-infused ingestible products. The Company will not pursue the commercial production or sale of CBD-infused ingestible products until legally permitted. The Company is closely watching and responding to all regulatory developments within the FDA and in each individual U.S. state, and plans to launch its CBD infused ingestible products accordingly.
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, the following: that the Company’s eight strategically located co-packing facilities have ample capacity to support demand; that the Company plans to bring on a new plant in May to give it additional capacity to meet the upcoming summer demand; and the Company is very well positioned in the water and CBD categories to fulfilling its goal of becoming America’s trusted and go-to brand.
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.
The Alkaline Water Company Inc.
Richard A. Wright
President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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