Under-the-radar company sees sales soar since the crisis triggered the grocery stock boom of the decade
Watch this brief video for the full story now — or read on to discover the 6 surprising reasons why one “enhanced” water company could be poised for explosive growth — and is now an even more attractive target for acquisition by a big soda company.
Sponsored Investor Alert:
Here are 6 surprising reasons why one NASDAQ company could now be a target for acquisition by Big Soda companies … And why this massive growth company – whose products are flying off the shelves at more than 60,000 stores across America – is my #1 stock pick for 2020
Strategic Investment Newsletter
By James Dale Davidson
The COVID-19 pandemic sparked panic. People emptied store shelves of essential items, particularly bottled water.
One company received numerous calls from store owners and managers begging them to send all the inventory they had.
Sales of their enhanced bottled water have soared since … and there is no end in sight.
In fact, sales soared in record-breaking time.
There may now be millions of consumers hooked on a new enhanced water brand. And they will stay loyal as the economy (and country) continues to navigate the pandemic and recovers from the lock down and shake up…
Investors who get in now, while the market slowly recovers from the Great Pandemic Meltdown of 2020, have the opportunity to make windfall profits. In fact, I anticipate that the value of this company could skyrocket upwards by as much as 55 times over the next 36 months.
Even Michael Burry – who Christian Bale played in The Big Short – seems to agree that now is the time to invest in water. It’s the one commodity he views as a safe investment.
Before the pandemic struck, the company – The Alkaline Water Company (NASDAQ: WTER) – was growing at an astonishing 62% compound annual growth rate, as the world turned from sugary soft drinks to bottled water — especially water that’s been enhanced in some way.
Its Alkaline88® water is found in 60,000 stores in all 50 states ...
And its sales exploded in response to the pandemic.
This makes the company a prime target for growth-hungry ... and now survival-hungry... soda companies.
Now, with the rapidly increasing consumer footprint since before the pandemic, this company is even more attractive to the big soda companies.
Crashing Soda Sales Cause A Frenzy of Acquisitions
Soda sales are in the midst of a multi-year freefall, in part because consumers are snapping up bottled water. Sales picked up a little during the pandemic lockdown, but that trend couldn’t last because there has been a massive psychological shift towards vastly improving health in a pandemic world.
Pre-pandemic changes in consumer behavior created an $18.5 billion annual bottled-water market in the United States alone. Now, that behavior has shifted into higher gear and growth is off the charts.
The pre-pandemic trend sparked a frenzy of acquisitions as the world’s largest beverage companies scrambled to adapt.
“Big Beverage” raced to buy up specialty water companies as quickly as they could compensate for their fizzling soda revenues.
Now, this frenzy is in high gear.
The Alkaline Water Company (NASDAQ: WTER) is one of the fastest-growing specialty water companies on the planet, posting a 62% compound annual sales growth rate over the last five years (excluding 2020 numbers).
This company was a prime potential acquisition target before the pandemic. Now it is an even more attractive target.
For all those reasons, early investors in this company could see significant upside from my #1 Stock Pick for 2020. But the reasons to invest now don’t stop there. Here are another five …
Reason #1: Global Bottled Water Sales Are Soaring Sharply Higher
As mentioned, more and more people are drinking bottled water … not only to replace soda … but also to replace tap water.
2017 marked the first year that Americans drank more bottled water than every other soda combined. It’s been steeply downhill for sugary drinks since then.
Pre-pandemic, Americans spent $18.5 billion on bottled water each year, and that was projected to rise to $22 billion by the end of 2024. Post pandemic, those projections are set to increase sharply.
And according to a report from industry expert Grand View Research, the global bottled water market is expected to reach $215.12 billion by 2025 – posting a compound annual growth rate of 7.4% over the next six years. Again, these numbers could explode as people across the world focus on improving their health by drinking healthier water ... with all of its benefits.
Worldwide Bottled Water Consumption Is Soaring!
There’s no question that this explosive growth in the bottled water industry is great news for my #1 stock pick for 2020: The Alkaline Water Company (NASDAQ: WTER).
But the growth in the bottled water market is only part of the story. That’s because The Alkaline Water Company (NASDAQ: WTER) is perfectly positioned to take advantage of the fastest-growing segment within the rapidly growing bottled water market...
Reason #2: Enhanced Profits: This Segment Is Growing THREE TIMES Faster than the Overall Bottled Water Market
The bottled water market is really two distinctly different markets.
The “plain” bottled water market consists of plain old H20 in a bottle. The “enhanced” market (where The Alkaline Water Company operates) consists of water that’s been augmented – with additional ingredients, such as minerals, vitamins, nutrients or flavorings.
The enhanced water market was growing three times faster than the overall bottled water market, pre-pandemic. Now a specific type of enhanced H20, alkaline water, could be the fastest growing type of enhanced water.
According to The Wall Street Journal, alkaline water sales were growing 43.9% a year, with no end in sight.
In a post-pandemic world, these trends have sped up exponentially.
According to the Financial Post, “premium (enhanced) waters are the fastest growing in this beverage sector.”
A recent survey by market research firm Mintel revealed:
- 43% of respondents said the “ideal” bottled water is enhanced with vitamins
- 29% said the “ideal” bottled water is enhanced with minerals
- 56% said they prefer to drink premium waters
- and 49% are drinking flavored waters to replace high-sugar drinks
In addition to exploding demand, enhanced water products have another advantage over plain bottled water: premium prices and significantly higher gross margins.
In the case of The Alkaline Water Company’s flagship product, Alkaline 88®, margins are driven higher in part because the product has just two ingredients:
Ingredient #1: Purified water (that has been adjusted to a pH of 8.8)
Ingredient #2: Himalayan Pink Rock Salt to create a smooth and clean taste profile
The company uses a proprietary process to adjust Alkaline 88® to a pH of 8.8, the level of alkalinity often referred to as “nature’s magic number” since it’s the highest pH that naturally occurs in water.
What is most remarkable, though, is that The Alkaline Water Company (NASDAQ: WTER)– in a short period of time – has already taken advantage of the rapid growth of the enhanced water market to help post a compound annual growth rate of 94.1%.
And it stepped up to the challenge of off-the-charts demand during the pandemic lockdown, with one month sales breaking records by 63%!
Alkaline 88® offers consumers a great product – one that is in high demand – that should help The Alkaline Water Company (NASDAQ: WTER) continue its impressive growth in the months ahead.
Reason #3: Efficiency and Growth: The Alkaline Water Company (NASDAQ: WTER) Appears to Be the Most Efficient Bottled Water Company on the Planet
Go to your local grocery store and there’s a very good chance you’ll see Alkaline 88® prominently displayed on the shelves. The product is already in more than 60,000 retail locations from coast to coast.
You’ll find Alkaline 88® in national retailers across the country, including Safeway/Albertsons, Walmart, Kroger, CVS, and other top regional and local supermarket chains. In fact, Alkaline 88® is currently sold in nine of the top 10 grocery chains.
Most remarkably, water grew from $0 to $41.1 million in sales in just 7 years with no traditional advertising.
The Alkaline Water Company (NASDAQ: WTER) has eight co-packers capable of producing $100 million worth of Alkaline88® per year. These plants are strategically located within 600 miles of 95% of the U.S. population. This significantly reduces transportation costs, an important consideration when moving heavy items like bottled water.
Not only is The Alkaline Water Company (NASDAQ: WTER) posting impressive growth without massive advertising expense ... it also appears to be the most efficient bottled water company on the planet.
The company has generated more than $2 million in sales per employee, making it about 10 times more efficient than its competitors, who generate an average of $220,000 in sales per employee (these are pre-pandemic numbers... they are even more staggering now).
Part of the reason for this great efficiency is that the company uses “co-packers” to drastically reduce capital requirements while minimizing shipping costs to retailers. (In the beverage industry, a co-packer is an independent company that bottles a brand under the direction of the brand owner.)
This remarkable efficiency — along with the company’s impressive growth — are just two of the reasons why I believe The Alkaline Water Company (NASDAQ: WTER) could deliver significant upside potential to investors.
Reason #4: Buyout Frenzy Underway: Big Beverage Buyout Frenzy Underway – Could The Alkaline Water Company (NASDAQ:WTER) Be the Next Big Beverage Target?
Bottled water sales exceed those of carbonated soft drinks, long considered the most popular beverage in America.
And at the same time, soda sales have been steadily declining for 13 years.
According to an article in Fortune, since 2004, “carbonated soft drinks have shed 1.6 billion cases in volume.”
This helps explain why Big Beverage is paying outrageous prices to acquire bottled water companies.
- Coca-Cola paid $4.2 billion for Vitaminwater, and $220 million for Topo Chico, a maker of sparkling mineral water.
- Keurig Dr. Pepper Inc. paid $1.7 billion for Bai Brands, and $525 million for CORE hydration water.
- Cott shelled out $78.5 million to acquire The Mountain Valley Spring Company.
- Coke’s acquisition of BodyArmor handed that company’s shareholders a 3,200% return!
I believe The Alkaline Water Company (NASDAQ: WTER) could be a prime candidate for acquisition by one of the big beverage companies because it has:
- one of the fastest growing brands in the fastest growing beverage category
- state-of-the-art technology that creates alkaline water without the use of chemicals
- an efficient operating structure that results in industry-leading sales per employee
- a distribution network that minimizes both capital needs and transportation costs
An efficient operating structure that results in industry-leading sales per employee and a distribution network that minimizes both capital needs and transportation costs … makes The Alkaline Water Company (NASDAQ: WTER) an even brighter potential acquisition target for big beverage companies.
Reason #5: The New Post-Pandemic Health Craze Coronavirus Fears Will Continue to Drive sales of its Water for all of 2020
COVID-19 has had one positive impact: It has created massive psychological shift in consumers. They now have a laser-like focus on health and hygiene. They are taking any and all steps they can to improve their health and strengthen their immune systems so that they have more of a fighting chance against the coronaviruses.
One of the ways consumers will work to improve their health is by making better choices about what they drink and eat.
They will more often reach for an enhanced bottled water, with its additional benefits, than just plain bottled water or soda … or even tap water.
And now that millions of American have a new, favorite bottled water - Alkaline88 and other brands from The Alkaline Water Company (NASDAQ: WTER) - the company could enjoy sales at elevated levels for months... even years
Reason #6: The company has introduced a new infused line of products that could take the market by storm.
The company recently launched an infused beverage division, featuring what I expect to be some hot new products.
The first is a zero calorie, all-natural flavored alkaline water – the first flavored alkaline water on the market, which once again gives the company a first mover advantage.
It also launched its A88CBD product range that includes …
- Hydrating CBD body lotion
- Hydrating CBD hand and foot cream
- CBD bath salts
- CBD muscle salve
- CBD-infused essential oil
- CBD-infused lip balm
- CBD oil tincture
- CBD capsules
- And CBD vegan gummies
This adds value to investors in a company that has already proven extremely adept at growing the business exponentially through word of mouth alone.
With these additional products on board The Alkaline Water Company is an even more attractive acquisition target to big beverage companies.
Bottom Line: I’m Recommending The Alkaline Water Company (NASDAQ: WTER) as a “Strong Buy” to my Strategic Investment newsletter subscribers
I’ve prepared a comprehensive Special Report to tell you even more about The Alkaline Water Company (NASDAQ: WTER). YES! There’s more to this incredible story. It’s called NASDAQ Sleeping Giant— and a copy is yours FREE when you accept a risk-free trial subscription to my newsletter, Strategic Investment.
Besides what the stock could potentially hand you in gains, I also want you to try the company’s signature water for yourself. Once you taste Alkaline88, you'll understand the loyalty of the drinkers of the company's products. That’s why I secured an exclusive coupon for you, which you’ll get along with that free report.
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And be sure to print out your coupon so you can try Alkaline88 to see what all the rage is about for yourself (if you’re not already a loyal Alkaline Water company fan).
What You Should Consider Now
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Visionary investor James Dale Davidson has more than three decades of experience helping investors build wealth by providing accurate “big picture” forecasts and discovering hidden profit opportunities before Wall Street catches on. And he has demonstrated unparalleled skill in finding unexpected profit opportunities during three market crashes.
The Big Beverage Buyout Frenzy and New Health Obsession I’ve described here in this report is just the latest opportunities to make significant profits from a revolution in consumer buying habits that major media outlets have largely ignored.
Don't miss this opportunity.
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All investments are subject to risk, which must be considered on an individual basis before making any investment decision. This paid advertisement includes a stock profile of The Alkaline Water Company (TSX and NASDAQ: WTER). Strategic Investment is an investment newsletter being advertised herein. This paid advertisement is intended solely for information and educational purposes and is not to be construed under any circumstances as an offer to buy or sell, or as a solicitation to buy or sell, any securities. In an effort to enhance public awareness of WTER and its securities, Venado Media LLC (Payor) provided advertising agencies with a total budget of approximately two million sixteen thousand and eighty-one dollars to cover the costs associated with creating, printing and distribution of this advertisement from August 27-December 7, 2020. 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