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Alkaline Water Company buys celebrity-backed AQUAHydrate

Dive Transient:

  • The Alkaline Water Firm, which makes normal wellness-targeted Alkaline88, acquired AQUAHydrate, one other firm within the alkaline area half owned by Mark Wahlberg, Sean “Diddy” Combs and Jillian Michaels. The corporate estimated the brand new entity may have greater than $65 million in gross sales in FY 2020. The deal was all in inventory.
  • The acquisition is the primary for the publicly traded Alkaline Water Firm. It consolidates two of the main firms within the area and brings a number of synergies in buyer base, distribution channels, social media and advertising, and manufacturing, CEO Ricky Wright advised Meals Dive. “We believe wholeheartedly that the merger is going to be one plus one equals three,” he stated.
  • AQUAHydrate will slowly merge its operations into Alkaline Water, however the movie star traders and employees will keep on. Wahlberg and Combs are retaining shares, whereas Michaels is staying on as a model ambassador. The merged firm will work collectively on growing and advertising each flavored and CBD-infused styles of alkaline water.

Dive Perception:

Premium water is large enterprise, and this acquisition is additional proof. Wright stated he believes alkaline water will likely be a $1 billion class within the close to future as extra firms and customers attain for the upper pH beverage. In line with Zenith Worldwide statistics cited by Beverage Every day, gross sales for alkaline water rose 18% to $631 million in 2017. In its latest earnings report, Alkaline Water reported $10.2 million in gross sales through the quarter, up 28.8% from the 12 months earlier than.

Alkaline water goes by a course of to extend its pH. Some say this type of water is healthier for well being, neutralizing acids, enhancing blood stream, slowing growing old and stopping continual illness. Specialists say there is not a lot in the way in which of concrete science to again these claims up, and it is led to shopper litigation.

This acquisition covers the bases of the product’s goal shopper. Some alkaline water is marketed as helpful for normal wellness, which is the candy spot of Alkaline88. AQUAHydrate is focused towards athletes and younger energetic customers, which is clear from its movie star traders. In line with data despatched to Meals Dive, Wahlberg first found the model when coaching for a task as a boxer and found the alkaline water made him get well from exercises extra rapidly. AQUAHydrate’s web site is filled with endorsements from different athletes, together with Olympic gymnasts, soccer gamers and weightlifters.

The endorsement and involvement of celebrities in AQUAHydrate make the acquisition particularly beneficial. It reveals they’ve a private connection to the model and helps elevate the name-recognition of the product, which usually leads to a rise in gross sales. Wahlberg is understood for his bodily appearing roles, whereas Combs is a music icon and Michaels is a health guru — all of which assist construct the prominence of the model and the general alkaline water product.

Whereas there may be little scientific proof that alkaline water is healthier, the phase is getting bigger. Manufacturers like Essentia and Stream fill cabinets and promise premium hydration. Alkaline variations have been developed by Keurig Dr Pepper’s Bai, and PepsiCo’s LIFEWTR additionally has a barely larger pH than common water.

Main beverage gamers are starting to enter the alkaline water area, however they seem like shifting cautiously. LIFEWTR just isn’t marketed as alkaline water, and Bai’s product within the area is branded as antioxidant water. Keurig Dr Pepper purchased Core Diet — one other premium water model with the next pH that does not put “alkaline” on the label — for $525 million final 12 months. Greater than a 12 months in the past, Essentia employed Credit score Suisse to deal with a sale — although sources rapidly advised BevNet the corporate was not but placing itself up for bids. Final summer season, preliminary figures put the corporate’s worth at about $500 million. To this point, the corporate continues to be independently owned. 

Whereas Alkaline Water’s merchandise in the marketplace thus far simply embrace unflavored Alkaline88, the corporate has been growing each flavored and CBD-infused variations. The flavors are at the moment being examined with some retailers, however the CBD varieties is not going to go on retailer cabinets till there may be extra readability from the Meals and Drug Administration on gross sales.

Whereas some CBD manufacturers are promoting themselves in particular person states, Wright advised Meals Dive that as a result of his firm is publicly traded, he doesn’t wish to jeopardize his itemizing. Nevertheless, he stated, the corporate is able to promote their merchandise as quickly as there may be FDA clearance, and so they have labored on CBD merchandise so as to add to the AQUAHydrate line as nicely.

Wright advised Meals Dive that with this acquisition, he is hoping to construct Alkaline Water right into a class chief. By persevering with this progress, he thinks that perhaps his firm might ultimately be the one which Massive Meals — or a hashish firm — decides to amass.

“There’s a ton of stories still to be told. And, you know, at some point in time, someone may want to take that story,” he stated.

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