October 14, 2021 -- InvestorsHub NewsWire -- via NetworkNewsWire
Editorial Coverage: A top trend driving change in the food and
beverage space is consumers’ growing demand for products that
support health and wellness. Research from Archer Daniels Midland
(“ADM”) indicates that 77% of consumers want to do more to stay
healthy in the future, and savvy companies are working quickly to
give customers what they want. With consumers choosing healthier
options for both food and drink, the sales of alkaline waters,
those with a pH between 7.0 and 10.0, are jumping. Only a few years
ago, retail sales for alkaline waters were under $95 million.
Today, Beverage
Marketing Corp. projects retail sales in the category to
reach $1.3 billion by 2023, representing 20% of the entire
value-added water category. Several factors are contributing to the
forecasted 42.6% compound annual growth rate, a CAGR
that The Alkaline Water Company Inc. (NASDAQ:
WTER) (CSE: WTER)
(Profile), the largest independent alkaline
water company in the United States, is ideally positioned to
benefit from. Other big-name companies, including Safeway Inc. (NYSE:
SWY), CVS
Health Corporation (NYSE:
CVS), Rite
Aid Corporation (NYSE:
RAD) and Amazon.com
Inc. (NASDAQ:
AMZN), also appear to be in strong positions as
consumers choose health and wellness.
- Promising retail opportunities are opening post pandemic as
some channels explode with demand and others are recovering
- WTER was ranked eighth in the broader functional water category
over the past month according to Nielsen Total US Food Data for the
four weeks ending Sept. 11, 2021
- The company has goals to reach 90,000 to 110,000 retail
locations by the end of fiscal 2022
- The Alkaline Water Company has reported 33 consecutive months
of year-over-year revenue growth
Click here to view the custom infographic of
the The Alkaline Water Company
Inc. editorial.
Growing Stronger in the Alkaline Space
Alkaline water is becoming increasingly popular as consumers
around the world become more aware of the health benefits its
enthusiasts claim to experience. While not all such benefits are
substantiated by clinical research, alkaline water proponents
insist the specialized water option has abilities to stabilize the
body’s natural pH level and facilitate faster body rehydration post
workout, among other things.
Today’s consumers are paying more attention to health and
wellness, and these types of benefits aren’t going unnoticed. In
addition, post-COVID-19 customers are also purchasing in different
ways, with certain sales channels such as e-commerce, big box and
warehouse clubs posting numbers higher than ever before. Smart
companies are recognizing the opportunities for growth and are
making strategic moves in these channels. In addition, some markets
that took a hit during the pandemic, including hospitality, food
services and travel, are rebounding, offering more opportunities
for companies to expand distribution and sales.
The Alkaline
Water Company Inc. (NASDAQ:
WTER) (CSE:
WTER) is making impressive headway in these
sectors. Already a dominant player in the market, WTER is
strategically growing its flagship Alkaline88(R) portfolio through
new targeted distribution points. The company has added key
personnel, expanded infrastructure and developed new products
designed specifically for emerging markets.
This deliberate growth and commitment to health and wellness
should strengthen Alkaline88’s position in the broad value-added
water market and alkaline water subcategory. The brand has already
outpaced sales at the next closest independent peer by fivefold and
has been ranked as the 10th-largest brand
of any type of value-added water over the last
year. In addition, Nielsen
data reports that Alkaline88 outperformed the whole
value-added water market during the 52 weeks ending Sept. 11, 2021,
by 12.8% and 17.5% in dollar and unit volume respectively.
Of note is that that success came prior to the company’s
announcement and advertising of its new brand
ambassador, basketball legend Shaq O’Neil. The advertising
campaign, designed for both TV and mobile devices, should only
increase those numbers.
Planning for Future Success
The numbers don’t end there. With the success of its Alkaline88
line and additions to its product offering, WTER has posted an
impressive 52% compound annual growth rate (“CAGR”) over the last
six years, including 33 straight months of double-digit,
year-over-year growth. Another big win? WTER became
the eighth-largest enhanced water company in the
country for the four weeks ending Sept. 11, 2021, according to
Nielsen Total US Food data. On its way to reach that number-eight
status, Alkaline88 passed LifeWTR, the premium enhanced water
product offered by big-name beverage player PepsiCo.
Currently, Alkaline88 can be found on the shelves of more than
75,000 stores throughout the country, but WTER isn’t content to
stop there. The company has goals to reach 90,000 to 110,000 retail
locations by the end of fiscal 2022. WTER’s flagship products is
already in leading grocers locations such as Kroger, HEB, Aldi,
Meijer and Publix as well as in large retail chains such as Rite
Aid; the product is also recognized as a Prime offering on
Amazon.com. Now WTER is planning to add high-growth channels, big
box, club and specialty retail, hospitality and foodservice to the
mix.
The future looks to be bright for the alkaline leader 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. That means that physical store
size or number of products doesn’t matter. Rather % ACV instead
focuses on how much product is actually sold. That 46% ACV means
WTER has plenty of important retail locations still available.
Understanding % ACV provides key information for companies to
prioritize regions and sales points that can immediately have a
positive effect on sales.
Targeting — and Reaching — Growth
Opportunities
Earlier this month, The Alkaline Water Company reached a major
milestone in the club channel when it announced a retail
distribution agreement with warehouse club juggernaut Sam’s
Club. Based on the agreement, WTER’s 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 its U.S.
locations
The Sam’s Club deal is the first of what the company hopes will
be other wholesale club agreement. But that’s not the only growth
opportunity the company is targeting — and reaching. Last month,
WTER announced that Alkaline88 would 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.
WTER Team Grows with Pitman, Shaq
Product distribution isn’t the only good news for The Alkaline
Water Company. This year the company has added two big names to the
WTER team. Chris Pitman was named WTER’s director of e-commerce,
and as one of his first big successes, he facilitated a
new partnership between The Alkaline Water Company
and an unnamed turnkey e-commerce agency. Previously director of
e-commerce and digital merchandising with Essentia, a leading
premium functional water brand acquired by Nestle in March, Pitman
played a key role in growing the brand’s overall e-commerce channel
sales performance by more than 160% in only three years.
And Pitman isn’t the only new face at The Alkaline Water
Company. Basketball Hall of Famer, actor, musician and TV
personality Shaquille O’Neal joined
WTER as a member of the board of directors and brand
ambassador earlier this year. Shaq is renowned for his careful and
deliberate business associations and endorsements and has been
quoted as saying he must genuinely like a product before he
attaches his name to it. WTER is in the process of unveiling an
omni-channel traditional marketing campaign featuring Shaq
endorsing Alkaline88.
Water, Wellness Spark Growth
As more companies jump on the health and wellness bandwagon,
both in the water sector as well as in other key spaces, companies
already in position may see the most success as they capitalize on
their expertise and commitment.
Safeway Inc. (NYSE:
SWY) operates as a banner of Albertsons
Companies, one of the largest food and drug retailers in the United
States. In 2016, the company launched Soleil by Signature
SELECT(TM) sparkling water, which quickly became a
multimillion-dollar brand and a customer favorite. Earlier this
year the company announced
big changes to the brand, including four delicious new
flavors, brand new packaging with world-class artwork, and a fun
#siptothebeat summer promotion with Spotify. “Shoppers are
gravitating toward drinks that have functional elements, like a
jolt of caffeine,” said senior marketing manager Shea
Friesen. “They also want healthy, low-sugar or sugar-free
offerings. Sparkling water ticks a lot of those boxes, and shoppers
are buying more of it.”
Earlier this year, CVS
Health Corporation (NYSE:
CVS) released a 2021 CVS
Health Study that found people are taking greater control
of their health as a result of the pandemic. The report also
highlights the resilience of patients, providers and the
health-care system, and growing interest in novel ways to engage
with health care to achieve a more individualized experience. “Over
the past year and a half, we have witnessed a dramatic shift in
consumer health-care preferences and needs,” stated CVS Health
president and CEO Karen S. Lynch. “Going forward, we have an
opportunity to take what we’ve learned and continue to foster an
integrated health model that is centered around the needs of the
individual.”
Rite Aid
Corporation (NYSE:
RAD) has officially launched a
refreshed brand designed to demonstrate the company’s
commitment to provide the perfect fusion of traditional medicine
and alternative remedies to help people not just get healthy, but
get thriving. The brand refresh also includes a new brand identity,
or logo, that is rolling out across the chain; whole health
merchandise; a refreshed digital experience; and its new
store-of-the-future store prototype currently piloting in select
markets. The integrated rebranding effort is part of Rite Aid’s
RxEvolution strategy to transform the company into the leading
whole-health destination that treats mind, body and spirit.
Amazon.com
Inc. (NASDAQ:
AMZN) and Amazon Web Services (“AWS”) are
committed to the ideal that individual health outcomes should not
depend on socioeconomic status, race, ethnicity, or neighborhood.
With that in mind, AWS announced a
new global program to support organizations working to
enhance health outcomes for underserved or underrepresented
communities. The company is providing AWS credits and technical
expertise and committing $40 million over three years to help
organizations develop solutions to improve health outcomes. This
program is open to organizations around the world that want
increase access to health services for underserved communities,
address social determinants of health, and leverage data to promote
more equitable and inclusive systems of care.
The burgeoning trends around health and wellness that are
shaping numerous industries, including food and beverage, provide
key insight into future potential and possibilities. A company’s
ability to capitalize on these trends may lead to significant
growth and success moving forward.
For more information about The Alkaline Water Company, please
visit The Alkaline
Water Company.
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