Swizzer, i did a buisness model on Fiji water and they do much more shipping than Aquagold will do and they are still very profitable. Not only do they ship the bottles 6,000 miles to L.A., they also have to ship the empty bottles the same distance to fiji from Hong Kong. Take a look at this article, it will give you an idea of how much it costs to ship a bottle of Fiji. http://www.triplepundit.com/pages/askpablo-exotic-bottled-water-002401.php
In my own calculations for my buisness model thesis, Fiji made $1.65 in profit from a bottle i bought for $1.99 from Walgreens with transportation to Illinois and distribution included
I suppose the company has been building it's business plan and has not considered how to turn a profit (lol). Do some DD and look at the profit margin as detailed by the previous CEO in an early interview.