The Alkaline Water Company Inc. (NASDAQ: WTER) (CSE: WTER) Well Positioned for Post-COVID ‘Homebody Economy’

  • Consumers bracing for COVID’s impact into 2022 with what is being dubbed “homebody economy”
  • Pandemic has led to demand spikes, changes in consumer supply and buying patterns
  • WTER has seen significant market share growth; ideally positioned to continue to expand

A recent survey indicates that consumers in a post-pandemic environment are likely to be cautious in their buying habits, as many expect continued impact moving into 2020; survey respondents indicated an estimated 40% increase in intent to purchase online (https://cnw.fm/yrmni). (The Alkaline Water Company (NASDAQ: WTER) (CSE: WTER) has an aggressive growth strategy that includes a direct-to-consumer, e-commerce platform— www.A88CBD.com — along with a compelling digital-marketing campaign, which place the company in a strong position in the post-COVID environment.

“Consumers continue to shift to online shopping across categories, with many consumers planning to shift almost completely online after COVID-19,” reported a recent McKinsey and Company survey. “Americans are trying new digital habits and intensifying usage of digital behaviors such as grocery delivery and restaurant delivery.”

These consumers are looking for both convenience and value as they search out new brands. While many Americans are eager to spend more time with family and friends, they are not eager to return to grocery stores and restaurants. What is being dubbed the “homebody economy” is expected to stick post-COVID. Around 53% of Americans believe their routines will not return to normal until well into 2021 or even later.

Major shifts in consumers’ online spending focus on small businesses and e-commerce. This was seen in consumers’ online shopping patterns during Cyber Monday 2020 (with an increase in 15.1% from 2019), Small Business Saturday (with 30.2% growth) and Sunday (23.7% growth). Consumers are also focusing their purchases on groceries and health and wellness products (https://www.cnw.fm/oci3Q).

WTER looks to be well positioned to benefit from the new buying patterns. The top bulk-alkaline-water brand is committed to strengthening its presence in the e-commerce and online grocery shopping spaces as the demand for flavored waters, sustainable packaging and CBD are leading in health, wellness and lifestyle trends. The company has two online sites: one for CBD-infused products — www.A88CBD.com — and one for its flagship beverage products — www.TheAlkalineWaterCo.com.

“The pandemic has led to demand spikes and changing consumers supply and buying patterns, which we believe have finally begun to normalize,” WTER CEO Ricky Wright stated during the company’s November earnings call (https://cnw.fm/QQ3BZ). Wright also noted that the company had implemented aggressive promotional spending over the summer, resulting in increased market share.

“According to the total U.S. all-sales channels Nielsen’s report dated October 3, our flagship brand has been the fastest-growing, non-flavored, value-added water of the top 10 brands over the last 13-, 26- and 52-week periods,” he said. “Per Nielsen’s over the last 26 weeks, our brand has grown 17.7% compared to the category growth of a negative 0.3%. Over the previous 13 weeks, our retail sales have exceeded our quarterly average. And we’re robust — 23.2% more than double the category growth. In the last 26 weeks, we have also gained roughly 0.4% market share. This is equivalent to almost $8 million in annual retail sales. During the same period our top selling SKU has become one of the top 10 in the value-added water category in the entire country. We remain the only top 10 value-added water that has grown double digits in every four-week period since January.”

As one of the fastest growing alkaline water companies in the United States, WTER has continued to expand its brand. The company was able to enter the grocery and supermarket channel and provide products in more than 70,000 retail locations nationwide, including Walmart, Kroger, Albertsons, Safeway and Publix. Several single SKUs have also been introduced to these grocery stores. In addition, WTER is pursuing distribution to convenience stores, drugstores and specialty retail channels. Due to COVID, these stores have aligned their merchandise to include healthier, convenient items.

Founded in 2012, The Alkaline Water Company is headquartered in Scottsdale, Arizona. Its flagship product, Alkaline88, is a leading premier alkaline water brand available in bulk and single-serve sizes along with eco-friendly aluminum packaging options. 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 and boasts its trademarked label: Clean Beverage. Quickly being recognized as a growing lifestyle brand, Alkaline88 launched A88 Infused(TM) in 2019 to meet consumer demand for flavor-infused products. Additionally, in 2020, the company launched its A88CBD Infused line of ingestible and topical products, including its CBD water.

For more information, visit the company’s websites at www.TheAlkalineWaterCo.com and www.A88CBD.com.

NOTE TO INVESTORS: The latest news and updates relating to WTER are available in the company’s newsroom at http://cnw.fm/WTER

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