World News: 14:00 GMT Monday 11th February 2019. [CFN Media via Globe Newswire via SPi World News]
SEATTLE, Feb. 11, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering (NASDAQ and TSX-V: WTER) and its robust distribution network. There’s no question that cannabidiol-incused (CBD) beverages are becoming a hot area for investment. Last September, multiple sources told BNN Bloomberg that Coca-Cola Co. was in “serious talks” with Aurora Cannabis Inc. to develop CBD-infused beverages. The beverage giant declined to comment on the story, but noted that it was closely watching the growth of CBD as an ingredient in functional wellness beverages.
Until recently, most CBD beverage companies were brand new startups with little brand recognition and only local distribution. The 2018 U.S. Farm Bill cleared the way for hemp production and removed cannabidiol (CBD) from Schedule I of the Controlled Substances Act, but many large companies continue to wait on the sidelines for clearer guidance. These dynamics have opened the door to mid-sized operations to fill in the gap.
Most CBD beverage companies are brand new startups with no brand history. At the same time, many consumers are already hesitant about purchasing CBD-infused products without the worry of going through an untrusted source. These dynamics have created an opportunity for mid-sized companies—especially those in the functional beverage space—that already have an established brand that already instills trust among a larger customer segment.
Alkaline Water has built a leading functional water brand over the past seven years. During its fiscal second quarter, the company generated more than $8.6 million in revenue, which was a 78 percent increase over the year ago period. These substantial growth rates point to a growing distribution footprint and strong adoption among its target customer segment—health conscious customers looking for healthier beverage options.
When building out its CBD business, the company partnered with to combine its state-of-the-art Electrochemically Activated Water system with technology to infuse water-soluble cannabinoids without losing any chemicals or additives. The merger of IBS’ science and technology with the power and integrity of the Alkaline88® brand could create a market leading approach.
Another issue facing many CBD beverage companies is the lack of distribution channels—particularly in traditional retail. Many startups have connections with dispensaries and other small businesses targeting cannabis consumers, but it’s much harder to place products in mass retailers or health and wellness channels. These companies demand much more rigorous production and quality control that startups simply lack.
Alkaline Water has already become the #1 bulk selling alkaline water brand in the United States. Alkaline88® is available in over 47,500 retailers in all 50 states, including national retailers like Safeway, Albertsons, Walmart, Kroger, CVS, and other top regional and local supermarket chains. These connections could be invaluable when building out immediate distribution for its CBD water products across the country.
Management continues to aggressively expand distribution into new areas. Earlier this month, the company announced a Retail Services Agreement with E.A. Berg Associates to expand its retail channels in the convenience store sector. The agreement entails 22 E.A. Berg retail sales representatives selling Alkaline88® across convenience stores in California and Texas. These agreements could bring thousands of convenience stores into the fold.
For more information, visit the company’s website at .
Please follow the link to read the full article:
CFN Media’s Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive content and original programming involving the people, companies and investments shaping the industry.
CFN Media is a leading agency and financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.
Our powerful digital media and distribution platform conveys a company’s message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.
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Globe Newswire: 14:00 GMT Monday 11th February 2019
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