The Alkaline Water Company Has Identified an Estimated $7 Million in Total Annual Savings
July 26 2022 - 9:05AM
Business Wire
The Company’s Pathway to Profitability Review
Has Revealed Approximately $2 Million More in Expense Reductions
and Margin Enhancements
The Company Shows Strong New Store Growth and
SKU Expansion
(All amounts are in U.S. dollars)
The Alkaline Water Company Inc. (NASDAQ and CSE: WTER) (the
“Company”), the country’s largest independent alkaline water
company and the Clean Beverage® company, today announced it has
identified approximately $2 million more in annual expense
reductions and margin enhancements through its company-wide pathway
to profitability evaluation and review. The Company has now
identified an estimated $7 million in annual cost-saving measures,
once fully implemented.
“Working closely with our new Project Management Office and
department heads, we’re pleased to announce that we’ve identified
approximately $2 million more in expense reductions and margin
enhancements since our last earnings call, for an annual
savings of $7 million once fully implemented,” said Alkaline88
President and CEO, Frank Lazaran. “We promised our shareholders
discipline and accountability as we carve out The Alkaline Water
Company’s pathway to profitability. We have a strong sense of
urgency to make good on that promise as we work diligently to
optimize our Company’s infrastructure, processes, and
partnerships to achieve sustainable profitable growth.”
The Company recently shared an update on new store additions and
SKU expansion within existing clients which quantify its continued
ability to grow as a top-ten value-added water brand. Since
April 1st, Alkaline88® has added over 8,400 new retail locations
and has expanded SKUs in over 14,000 existing client locations.
Less than a month into the second quarter of its fiscal year, the
Company is already close to meeting its stated goals of adding over
10,000 new stores and expanding SKUs in 15,000 existing retailers
in fiscal year 2023.
“Our trusted client relationships themselves present even more
opportunity for Alkaline88 to continue to improve as a brand by
working closely with our retailers across the country to expand our
brand and drive higher sales velocity,” continued Mr. Lazaran. “We
are working hard to optimize every facet of our business so that we
see improved margins in those sales.”
About The Alkaline Water Company:
The Alkaline Water Company is the Clean Beverage® company making
a difference in the water you drink and the world we share.
Founded in 2012, The Alkaline Water Company (NASDAQ and CSE:
WTER) 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 alkaline drinking water with trace minerals and electrolytes and
boasts our trademarked “Clean Beverage” label. In 2021, The
Alkaline Water Company was pleased to welcome Shaquille O’Neal to
its board of advisors and to serve as the celebrity brand
ambassador for Alkaline88®.
To purchase The Alkaline Water Company’s products online, visit
us at www.alkaline88.com.
To learn more about The Alkaline Water Company, please visit
www.thealkalinewaterco.com or connect with us on Facebook, Twitter,
Instagram, or LinkedIn.
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: the statements relating to the Company’s identification
of estimated $7 million in total annual savings; the statement
relating to the Company’s pathway to profitability; the statement
relating to approximately $2 million more in expense reductions and
margin enhancements; the statement relating to optimizing the
Company’s infrastructure, processes, and partnerships to achieve
sustainable profitable growth; the statement relating to the
Company’s continued ability to grow as a top-ten value-added water
brand; the Company’s stated goals of adding over 10,000 new stores
and expanding SKUs in 15,000 existing retailers in fiscal year
2023; that the Company’s trusted client relationships themselves
present even more opportunity for Alkaline88 to continue to improve
as a brand by working closely with the Company’s retailers across
the country to expand the Company’s brand and drive higher sales
velocity; and the statement relating to optimizing every facet of
the Company’s business so that the Company sees improved margins in
those sales.
The material assumptions supporting these forward-looking
statements include, among others, that the Company’s cost-saving
measures will be fully implemented and, once implemented, they will
be effective to reduce the Company’s annual expense and enhance the
Company’s margin to the extent anticipated by the Company; 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220726005171/en/
The Alkaline Water Company Inc.
Jeff Wright Director of Investor Relations 866-242-0240
investors@thealkalinewaterco.com
Media
Jessica Starman 888-461-2233 jessica@elev8newmedia.com
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