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8-K - FORM 8-K - ALKALINE WATER Co INCform8k.htm
EX-99.2 - EXHIBIT 99.2 - ALKALINE WATER Co INCexhibit99-2.htm

 

 

 

 



 

 

OTCQB:WTER | Company Presentation – October 2014

www.thealkalinewaterco.com



Forward Looking Statements  

Notice Regarding Forward -Looking Statements

This presentation contains "forward -looking statements. " Statements in this presentation 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 Alkaline Water Company Inc.’s (the “Company”) statements regarding the Company’s intention to provide the highest quality alkaline drinking water to the largest consumer audience possible; the Company’s expectation to be in 20,000 stores within the next 12 months; and the statements that 4th manufacturing facility is opening in Q4-2014; that the biggest driver of growth over the next 12 months will be the major expansion of the sales footprint nationally; and that there are no current plans for mass market advertising campaigns. Such factors include, among others, the inherent uncertainties associated with developing new products and operating as a development stage company, the Company’s ability to raise the additional funding it will need to continue to pursue its business and product development plans, competition in the industry in which the Company operates and market conditions. These forward -looking statements are made as of the date of this presentation, 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. Although the Company believes that any beliefs, plans, expectations and intentions contained in this presentation are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. You 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 we file with the SEC, available at www.sec.gov.


 



Company Overview

The Alkaline Water Company Inc. produces, distributes, markets and sells its signature bottled alkaline water, Alkaline88.

  • Products are sold in numerous retail markets, including chain and independent health food stores, grocery store, convenience and drug stores.

  • The Company has obtained national distribution in over 8,500 stores in 49 states and the District Of Columbia. Sample retailers include:



Rapidly Growing Sales

Sales of Alkaline88 have been increasing dramatically.

  • From sales of under $10,000 per month in Q1-2013, to over $435,000 in September 2014.



Store Count

Alkaline88 continues to expand nationally at a rate of over 700 stores per month and expects to be in 20,000 stores within the next 12 months.



Alkaline 88 vs. Competitors

Alkaline88 has no calories, added sugar, artificial coloring or preservatives.  
   
It helps keep our cells hydrated to maintain optimum health & high energy levels  
   
Alkaline water is thought by many to fight a variety of diseases and boost immunity  
   
A balanced life starts with balanced hydration.  




 
84 Trace Minerals No No No Yes
3 Liter & 1 Gallon Products No No No Yes
Value Package No No No Yes
8.8 pH Level or Higher No Yes Yes Yes
Nationwide Warehousing Locations Yes Yes No Yes
State of the Art Electrolytes Process No Yes Yes Yes
Lowest Every Day Pricing No No No Yes



Key Partners

WTER utilizes third-party distribution relationships to maximize their sales and marketing footprint.

Direct Store Delivery (DSD) - currently makes up ~13% of sales

  o DSD Includes gas stations, smaller retail stores, etc.


  o Focused on distributing smaller sized packages (500-ml, 700-ml, and 1-liter).
  o Kalil Bottling Co., a family owned beverage distributor based in Arizona that serves AZ, TX, CO, and NM - instrumental in helping launch Monster Energy, Vitamin Water and Smart Water.
  o Hangar 24, based out of Redlands, CA helps support all of Southern California with small bottle distribution
  o Triangle Distributing Co. , based out of Santa Fe Springs, helps support the Southern Los Angeles market with small bottle distribution.
     
     
     
     

 

Direct To Retail (DTR) - currently makes up ~87% of sales

  o DTR Includes regional and national chains
  o Key Partner is BeaconUnited, a national firm comprised of 8 leading U.S. food and beverage brokers.
  o Focused on distributing larger sized packages (3-liter and 1-gallon).
     
     
     
     

Other key partners include:

  o KeHE - distributes over 40,000 products to 15,000+ retail stores
  o C&S Wholesale Grocers - wholesale distributor of grocery store items
  o Tree of Life - one of the largest certified organic distributor in the U.S.
  o UNFI - leading independent national distributor of organic, specialty foods
  o Nature’s Best - largest privately owned distributor of natural food products
     
     
     
     

WTER is currently sold in 49 states, and over 8,500 stores.



Distribution Broker Coverage



Distribution Retail Partners



Manufacturing

WTER Employs a state-of-the-art Electrochemically Activated Water (ECA) system to create 8.8 pH drinking water without the use of any chemicals.
   
The ECA process uses specialized electronic cells coated with a variety of rare earth minerals to produce scientifically engineered water.
   
The Company further incorporate 84 trace Himalayan minerals considered to be the best in the world. These Himalayan minerals are considered to be the best in the world to make our ALKALINE88 brand especially unique to other alkaline waters on the market today.
   
   
   
   
   
   
   
   

 

The Company’s proprietary industrial production equipment require low capital expenditures and can be readily installed and/or transferred to any water production  facility.

Production equipment can be installed on average in 10 days and costs ~$250,000 per installation.
   

The production equipment is currently located in 3 plants with a capacity to produce a total of 107,824 liters per day.

Each unit is capable of producing 26,956 liters per day
 4th Manufacturing facility is opening in Q4-2014.
   
   
   
   
   
   
   
   
   
   
   
   



Marketing General Strategy



Future Growth Drivers / Next Steps

The biggest driver of growth over the next 12 months will be the major expansion of the sales footprint nationally.

  • Currently in 8,500 stores – management believes can be in 20,000 stores in 12 months
  • Company is focused on executing production and deliveries to customers

WTER has been built for low-cost expansion

  • Low-cost manufacturing centers throughout the country can add capacity quickly
  • Ability to scale up with no additional personnel
  • No current plans for mass market advertising campaigns



Management Team

Steven Nickolas – Chief Executive Officer / President

  • 36+ years of experience in the beverage industry and bottled water industry.
  • Developed bottled water companies in the US and globally.
  • Opened “The Water Man” in Maui and expanded to all five major islands within 18 months. Vestige of company is still in operations today.
  • Started Beverage Images in 1999 and grew to $35M in sales in less than 18 months.
  • Opened foreign locations in Micronesia, Indonesia, Philippines, Israel, Egypt and Germany, many of which are still operating today.
  • Founded Apani Bottled Water in 1990, which he grew to $35M in sales in less than 5 years. It was the first bottled water company licensed by major sports leagues in the US, including the NFL, NBA, NHL and MLB.
  • Has served in a variety of management positions for major beverage companies including Nestle, Whitlock Packaging, P&G and Suntory.
  • B.S. in Political Philosophy & Political Science, M.A. in Government from The Claremont Colleges and post graduate studies at Cal-Poly Pomona.

Ricky Wright – Vice President , Secretary / Treasurer

  • 36+ years of experience as a CPA, CFO and entrepreneur.
  • He has recently worked as a Chief Financial Officer for PCT International. PCT is a leading worldwide developer and manufacturer of last mile and access network solutions for broadband communication networks. It has manufacturing plants in USA and China and sells their products in 42 countries.
  • In 2010 he began his own CPA firm in Scottsdale Arizona and Sold it in 2013.
  • Former regional director of tax and financial planning with Arthur Young & Co. .
  • Mr. Wright graduated with honors from Mount Union University in Alliance, OH and completed graduate level courses at Case Western University in Cleveland, OH. He is a licensed CPA in AZ and has also held his Series 7 & 63 licenses and Life and Health Insurance licenses.


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