Alkaline Water Comp Inc (WTER)

[Roland Rick Perry]

Core Acquisition vs Alkaline Water.

Looking at the core numbers (NOL's) it appears CORE spent quite a bit of money to get RETAIL sales of $200 million which roughly translates to $70 million at wholesale.

KDP said the $525 million it was spending to acquire CORE nutrition came along with $90 million in anticipated tax benefits.

We carried an article at Beverage Start-Up News that originated from BevNet that Core had raised $39 million.

http://beveragestartupnews.com/core-nutrition-raises-39-million-privately-bevnet/

This is all important news related to understanding how many rapidly growing small beverage start-ups are financed - that's often overlooked as most start-ups are privately held so their financials are private.

Hi-tech and Biotech industry investors are more accustomed to this reality (Instagram was acquired for $1 billion and it didn't even have sales, forget profits). Of course, this grow at all costs strategy doesn't always work - but when it does, it does rather dramatically.

KDP didn't acquire Core because it was profitable or anywhere even close to profitable. They acquired them because they saw consumer acceptance - which they know they can expand. So it looks like they overpaid, but we won't truly know for a couple years.