Premium water companies The Alkaline Water Company and Aquahydrate are joining forces: with CBD-infused product launches in the pipeline to meet demand for functional wellness beverages.
The combined companies are projected to drive sales of more than $65m for FY2020 on a pro forma basis.
Aquahydrate’s celebrity investors Mark Wahlberg, Sean ‘Diddy’ Combs and Jillian Michaels continue will serve as brand ambassadors for the two brands. The combined social media reach of Alkaline, AQUAhydrate and the investors is expected to be over 74 million followers across Facebook, Twitter and Instagram.
Focus on functionality
The Alkaline Water Company – whose flagship product is premium 8.8pH bottled water Alkaline88 – recently reported a fifth consecutive year of 50% year on year growth. It has also been adding to its product portfolio with flavoured-infused waters and additional pack sizes.
It will now acquire all the issued and outstanding shares of common stock and preferred stock of private Los Angeles performance lifestyle company Aquahydrate in an all-stock transaction.
Richard A. Wright, president and CEO of The Alkaline Water Company, said: “The acquisition of AQUAhydrate is an unprecedented opportunity that allows The Alkaline Water Company to cement itself as a leader in various multi-billion dollar segments which include premium water, functional & wellness, and the CBD market.
“We believe that post-acquisition, we will attract a more diverse consumer base, offer product differentiation and innovative brand extensions to become a major independent force in the beverage sector.”
The Alkaline Water Company already has a CBD product portfolio which includes CBD shots, tinctures, capsules and powder packs. With Aquahydrate, the two companies are planning to focus on CBD-infused products in their upcoming product launches, tapping into increased demand for functional wellness beverages.
“Our CBD-infused health drinks will place us on the map within the rapidly growing market, and through education and our ambassador program, will make us a strong competitor for this $22bn category by 2021,” said Keay.
Alkaline emphasises it will comply with federal, state, and local laws, rules and regulations as it develops its CBD-infused products, and will not pursue commercial production or sale until legally permitted. “Alkaline is closely watching and responding to all regulatory developments within the FDA and in each individual US state, and plans to launch its CBD infused products accordingly,” it says.
Source: Beverage Daily
