Is Alkaline Water Co., (WTER) Following National Beverages (FIZZ) Footsteps (CFNMedia).

SHARE

The Alkaline Water Co.,  Article Archive.

SEATTLE, Nov. 19, 2018 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering The Alkaline Water Co. and their entry into the CBD-infused beverage market. Most people have heard of LaCroix—the brand is the subject of a viral R&B single and even a popular t-shirt line. In 2017, the flavored sparkling water brand reported net sales of over $800 million with a growth rate that was nearly four-times greater than the sparkling water category.

LaCroix, owned by National Beverage (FIZZ).

With the legalization of cannabis across a growing number of states, CBD-infused beverages have become increasingly popular among consumers. Google Trends notes that the search term “CBD Water” has surged in popularity over the past two years. Many consumers are eager to realize the potential health benefits of CBD in a convenient beverage format.

Many alcohol giants have also taken an interest in the THC side of the space. Constellation Brands Inc. boosted its equity stake in Canopy Growth Corp. to 38 percent earlier this year at a cost of C$5 billion, while Molson Coors Brewing Co. formed a joint venture with The Hydropothecary Corporation around the same time to develop a line of non-alcoholic cannabis-infused beverages.

But, what companies are best positioned to potentially become leaders in the space?

Alkaline Water Builds a Moat

The Alkaline Water Co. (TSX-V: WTER) (OTCQB: WTER) is quickly becoming a leader in the CBD water space. Building off the success of its flagship Alkaline88® bottled water brand, the company began working on a CBD water product using the same proprietary Electrochemically Activated Water (ECA) system it has employed to create its signature 8.8 pH Alkaline88® without the use of any chemicals.

The company recently reported revenue that soared 78 percent to $8.6 million during the fiscal second quarter after launching its hemp-derived CBD-infused Alkaline88® water product. With growing distribution in Walmart and CVS, the company has the potential to reach a wide range of new customers with these new products.

The company’s newly launched hemp-derived CBD infused Alkaline88® water will initially be available in the 500 ml size with a dosage of 10 mg of CBD per bottle. By leveraging Alkaline88’s existing infrastructure and distribution, the company can immediately roll out products across 35 states and the District of Columbia under 20 well-known banners including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen and Carrs.

Between 2014 and 2018, the company’s fiscal year end revenues have grown from $600,000 to almost $20 million. The company is projecting $40 million by the end of fiscal year 2019. The company has averaged 435 percent growth since 2014 and is projecting a 102 percent year over year increase in 2018. These figures are significantly higher than many development-stage opportunities just starting out in the CBD water segment.

The company also has plenty of growth capacity. Through its co-packing and development agreement with ANP, the company has access to an FDA-registered, cGMP compliant facility that has been certified by both the International Center for Cannabis Therapy and the National Sanitation Foundation. The team also has a history with cannabinoid and other plant extraction techniques that could provide it with a formidable advantage.

THC Remains a Question Mark

The alcohol industry has started staking its claim on the THC side of the beverage business through acquisitions and joint ventures, but consumers have been moving away from “big alcohol” and toward craft beer and spirits over the last 20 to thirty years. This dynamic could lead to a more fragmented market for recreational beverages designed to deliver a high.

There are many smaller companies that aim to produce craft cannabis beverages. For example, Province Brands of Canada, a craft beer producer, developed the world’s first beer created from cannabis. Its patent-pending process creates the beers using the parts of the cannabis plant that would otherwise have no commercial value, such as the stalks and stems. The company aims to establish the first cannabis brewery in Canada.

But as with craft beer, the future of the craft cannabis beverage industry may be hyperlocal with existing breweries teaming up with existing dispensaries to create new concoctions. On top of that, the regulatory framework around THC-infused beverages is inconsistent to non-existent, meaning that bringing these products to market on a large scale is not practical. For now, CBD-infused beverages offer a much larger market opportunity

Building Exposure to the Space

Investors have many options to build exposure to the cannabis beverage space, including cannabis companies and existing beverage companies. The Alkaline Water Co. (TSX-V: WTER) (OTCQB: WTER) offers a pure-play in the space with its focus on CBB-infused water, while its existing infrastructure could de-risk the launch of the new products and help it gain near-term market share.

For more information, visit the company’s website at www.thealkalinewaterco.com.

Please follow the link to read the full article: http://www.cannabisfn.com/will-become-lacroix-cbd-beverages/

About CFN Media

CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed.

Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany

Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand:https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8

Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided onhttp://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies.  We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

Contact

CFN Media
Frank Lane
206-369-7050
[email protected]