October 12, 2021 -- InvestorsHub NewsWire -- NetworkNewsWire
Editorial Coverage: As recently as 2015, the retail sales for
alkaline waters, those with a pH between 7.0 and 10.0, were less
than $95 million. With consumers taking a more proactive approach
towards health, alkaline sales are booming. Industry
authority Beverage
Marketing Corp. forecasts retail sales in the category to
balloon to $1.3 billion by 2023, representing 20% of the entire
value-added water category. Drivers abound to support the 42.6%
compound annual growth rate for the forecast period, which are
undergirding exponential growth for The Alkaline Water
Company Inc. (NASDAQ: WTER) (CSE: WTER) (Profile), the largest independent alkaline
water company in the United States. Major grocers,
including Walmart Inc. (NYSE:
WMT), BJ’s
Wholesale Club Holdings Inc. (NYSE: BJ), Costco Wholesale Corporation (NASDAQ:
COST) and the
Kroger Company (NYSE: KR), have benefited from and are
following the category trend, many bottling their own alkaline
brands while stocking their shelves and distribution centers to
increase options and meet consumer demand.
- COVID-19 has created new retail opportunities as some channels
explode with demand and others are re-emerging as economies
re-open.
- The Alkaline Water Company is the country’s largest independent
alkaline water company and over the past month ranked eighth in the
broader functional water category.
- WTER is focusing on reaching up to 100,000 retail locations
through high-growth channels.
- WTER has 33 consecutive months of year-over-year revenue
growth.
Click here to view the custom infographic of
the The Alkaline Water Company
Inc. editorial.
COVID-19 Strengthens Consumers Love of Alkaline
Water
Barely known to anyone a decade ago, alkaline water today has
captured the attention of consumers worldwide. While some contest
that health claims aren’t substantiated by clinical research,
proponents of alkaline water hail it for myriad benefits, such as
stabilizing the body’s natural pH level, which can be thrown out of
whack by acidic diets; and facilitating faster body rehydration
postworkout, among other things.
COVID-19 reshaped some aspects of how the world transacts, with
certain sales channels stronger now than before the pandemic,
including e-commerce, big box and warehouse clubs. Consumer package
goods (“CPG”) companies are adapting to, taking advantage of and
making moves in these channels. Other markets that took a hit
because of COVID-19, such as hospitality, food services and travel,
are coming back to full strength, which creates more opportunities
for CPG companies to expand distribution and sales against the
backdrop of shifting consumer habits to emphasize health as these
channels aim to re-energize revenue.
As counterintuitive as it may sound, crises create some strong
sectors, and alkaline water seems to be a benefactor of a
confluence of market drivers. The
Alkaline Water Company Inc. (NASDAQ: WTER)(CSE:
WTER) is already a dominant player in the market
and is strategically expanding its flagship Alkaline88(R) portfolio
into the aforementioned channels via new targeted distribution
points. The company is aggressively growing, adding key personnel,
expanding infrastructure and developing new products tapping
lucrative emerging markets.
The expansion should further cement Alkaline88’s position in the
broad value-added water market and alkaline water subcategory. The
brand already outpaces sales at the next closest independent
peer by fivefold and, over the last 12 months, weighs in as the
10th-largest brand of any type of value-added
water. What’s more, Nielsen
data shows that Alkaline88 outperformed the whole
value-added water market during the 52 weeks ending September 11,
2021, by 12.8% and 17.5% in dollar and unit volume respectively.
And that was before the advertising featuring the brand’s new brand
ambassador, basketball legend Shaq O’Neil, has hit televisions and
mobile devices.
C-Ya Pepsi, Alkaline88 Shines
The list of accomplishments to date for WTER and Alkaline88 are
impressive. The company has posted a stunning 52% compound annual
growth rate (“CAGR”) over the last six years and 33 straight months
of double-digit, year-over-year growth on its way to becoming
the eighth-largest enhanced water company in the
country in the past month for the four weeks ending Sept. 11, 2021,
according to Nielsen Total US Food data.
In order to reach no. eight, Alkaline88 passed LifeWTR, the
premium enhanced water product launched by beverage juggernaut
PepsiCo in 2016. Currently, Alkaline88 is available in more than
75,000 stores throughout the country. The company is targeting a
range of 90,000 to 110,000 retail locations by the end of fiscal
2022. Already in leading grocers such as Kroger, HEB, Aldi, Meijer
and Publix as well as in large retail chains such as Rite Aid and
as a Prime product on Amazon.com, WTER is looking to slingshot the
organic success by adding high-growth channels, big box, club and
specialty retail, hospitality, and foodservice to the mix.
And there’s plenty of green grass ahead as indicated by
Alkaline88’s relatively low all commodities value (% ACV) of 46%. %
ACV is an industry metric that measures a store’s total sales of
all products compared to the sales of all relevant retailors in the
same territory. In short, % ACV doesn’t pay attention to physical
store size or number of products, it hones in on how much product
is being sold. A stat of 46% suggests there is plenty of important
retailers available. Understanding % ACV let’s companies prioritize
regions and sales points that can immediately have a positive
effect on sales.
Triggers for Another Growth Phase
The Alkaline Water Company crossed a major milestone in the club
channel this month by landing warehouse club goliath Sam’s
Club as a retailer. Starting next month, Deliciously
Smooth(TM) Alkaline88 one-liters in a convenient 12-pack will be
available to millions of Sam’s Club members across all 587 of their
locations throughout the United States.
Sam’s marks the company’s first foray into wholesale clubs,
while Alkaline enters other target markets for WTER. The company
recently announced that its flagship product, Alkaline88, will soon
be available in nine major
U.S. airports including JFK, La Guardia, Chicago O’Hare,
Orlando International and others serving hundreds of millions of
passengers every year. WTER also partnered this summer with Premier
Distribution Services, which will put Alkaline88 in more than 800
gyms, fitness centers, and spas nationwide.
Pitman, Shaq Suit Up for WTER
The Alkaline Water Company has recruited two big names to join
the WTER team. Chris Pitman has come onboard as director of
e-commerce, with one of his first tasks overseeing a
new partnership between The Alkaline Water Company
and an unnamed turnkey e-commerce agency. Pitman previously was
director of e-commerce and digital merchandising with Essentia, a
leading premium functional water brand acquired by Nestle in March.
During his time in that role, Pitman helped grow the brand’s
overall e-commerce channel sales performance by more than 160% over
a three-year period.
While not everyone may recognize Pitman’s name, nearly everyone
has heard of basketball Hall of Famer, actor, musician and TV
personality Shaquille O’Neal, who joined
WTER as a member of the board of directors and brand
ambassador. Shaq, who has similar positions with Papa John’s Pizza,
is known for being selective in companies he will endorse or work
with, saying he must truly like the product before he’ll attach his
name to it. Once post-production is complete, the company will
launch an omni-channel traditional marketing campaign featuring
Shaq endorsing Alkaline88.
Water, Water Everywhere
Samuel Taylor Coleridge’s albatross-shooting seaman in “The Rime
of the Ancient Mariner” surely would have wished his ship was
stranded in a water aisle at a large grocer today; he’d have more
than a drop to drink. Companies are looking to capitalize on the
trend away from sugar drinks and into the full spectrum of waters,
albeit simply purified, carbonated, flavored or pH-balanced and
electrolyte-infused.
Walmart Inc. (NYSE: WMT) is the
world’s biggest retailer and owner of Sam’s Club, where it is
recognized for its popular
private label brand, Member’s Mark. Under that moniker, Sam’s
sells its own alkaline water that it trumpets as “supercharged with
electrolytes for a smooth, refreshing taste.” The water sales
chipped into overall sales at Sam’s Club that totaled $64 billion
during the fiscal year ended January 31, 2021.
BJ’s
Wholesale Club Holdings Inc. (NYSE: BJ) has
a robust
lineup of functional waters it sells to members online and
in its 222 clubs and 151 BJ’s Gas(R) stores located in 17 states.
Brands include Essentia, San Pellegrino, Vita Coca, Hint and more,
which all contribute to growing sales for BJ’s. Net sales during Q2
fiscal 2021, the period ended July 31, 2021, increased 5.6% year
over year to $4.1 billion, aided in part by a 7.6% increase in
revenue from memberships, which reached $88.75 million.
Costco Wholesale Corporation (NASDAQ:
COST), the world’s second-largest retailer behind
Walmart, has its own alkaline
water sold under its Kirkland brand in its clubs and
online. Costco operates 817 warehouses, including 565 in the United
States and Puerto Rico, 105 in Canada and 39 in Mexico with the
remainder spread across nine countries as well is e-commerce sites
in eight countries. After beating analysts for Q4 sales, revenue
keeps coming in at Costco, which reported net sales of $19.50
billion for the retail month of September, the five weeks ended
October 3, 2021, an increase of 15.8% from $16.84 billion last
year.
The
Kroger Company (NYSE: KR), the nation’s largest
supermarket chain, sells its own branded alkaline water among a
list of 233 water
products. Kroger remains at the leading edge of all consumer
trends, last month teaming up with Instacart to
launch Kroger
Delivery Now nationwide. Powered by a virtual convenience
store that is fulfilled by the Kroger Family of Stores, customers
can order and receive fresh food, household essentials, meal
solutions and snacks from early morning to late at night delivered
to their doors in as little as 30 minutes.
It is often said that “the trend is your friend,” and there are
certainly several trends revolving around the food and beverage
sectors that command attention. Water, particularly premium
functional types, is a strong one that is building momentum with no
indications of slowing down.
For more information about The Alkaline Water Company, please
visit The Alkaline
Water Company.
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