Alkaline Water Comp Inc (WTER)

[pspencer1717]

Sale to a major is definitely on their radar according to this quote release today.

A Potential Exit

As WTER continues to grow its distribution network and as sales and market share grow, it may become a takeout target for a larger player.

With the titans like Coca-Cola and PepsiCo actively looking to add fast-growing brands to their portfolios, water brands like Alkaline88® are likely to catch their eye. Of course, that is a longer-term opportunity for investors in Alkaline88®.

Right now, WTER is focused on increasing its share of shelf space on U.S. retail shelves. To that end, the company recently announced the expansion at one of the six manufacturing facilities with co-packer White Water in Phoenix, Arizona. According to White Water President Chris White, “Our new facility is over three times larger than our prior plant and will allow us to double our annual production of Alkaline88®.”

And, in an indication that WTER remains on track to hit its revenue goals in 2018, its sales for its first quarter of its 2019 fiscal year hit a record of US$7.85 million. That’s a 51 per cent improvement over its first quarter sales for its 2018 fiscal year.

As Alkaline88® appears in over 40,000 retailers throughout the U.S., The Alkaline Water Company’s (TSXV: WTER) chances of attracting the attention of a larger player should grow proportionately.

Keay elaborates, “We’ve got a good loyal group of investors, but I think all brands aspire one day to become a tuck-under brand with one of the majors. As we approach US$30–40 million in sales, I think the dialogue with larger players will increase and the terms will be more favorable for our shareholders.”