Beloved NBA Hall of Famer Shaquille O’Neal has taken a seven-million-share stake in The Alkaline Water Company (NASDAQ.WTER).

Follow his lead on this fast-growing, asset-light company as it sets the stage for a lucrative takeout by Big Beverage.

Dear Fellow Investor,

It’s an intriguing move, to say the least.

NBA legend Shaquille O’Neal, spokesperson for major brands like Papa John's and Icy Hot, has elected to put his considerable weight behind The Alkaline Water Company (NASDAQ.WTER).

Why did this elite basketball player and businessman take a seven-million-share stake in this relatively tiny company?

Well, probably because he saw the same trends beverage industry analysts are seeing.

Which is that Big Beverage has been buying its growth over the past couple of decades by snapping up specialty water companies that are taking ever more shelf space away from its legacy soft drink SKUs.

The latest example of that trend was food giant Nestle’s decision in March to buy Alkaline Water Company competitor Essentia Water for $1 billion.

That move left WTER as the largest independently owned alkaline water company on the market.

And, as you’re about to discover, its rapid growth and strong distribution network have put a target on its back as Big Beverage’s next, obvious acquisition.

Leveraging The Beverage Market’s Fastest Growing Sector

As its name implies, The Alkaline Water Company’s flagship project is Alkaline 88®, an alkaline enhanced water naturally calibrated to the maximum natural Ph level of 8.8.

Alkaline 88® is perfectly tailored to strong and long-standing consumer trends towards healthier beverage options.

A simple mixture of Ph-balanced water and minerals from Himalayan sea salt, Alkaline 88® has helped WTER post an impressive 52% compound annual growth rate over the past six years.

Much of that growth owes to a talented and aggressive sales team that has gotten Alkaline 88® on the shelves of more than 75,000 retail outlets across the country, including heavy hitters like Safeway/Albertsons, Kroger, CVS and Wal-Mart.

WTER’s latest U.S. distribution win was a doozy — the Alkaline 88® 1-liter 12-pack will soon be available in the nearly 600 Sam’s Club locations in the U.S. and Puerto Rico.

And, thanks to its recent distribution deal with Mexico superstore chain Tiendas Sindicales, The Alkaline Water Company is expanding its footprint internationally as well.

In other words, with its flagship product alone, WTER appears primed for strong growth for the foreseeable future.

But, as those 1970s commercials liked to say, “But wait…there’s more!”

Cashing In On The CBD Trend

That’s because The Alkaline Water Company is also intent on riding the growth market that is CBD.

Thanks to the 2018 Farm Bill, the hemp-derived version of CBD is available in all 50 states, and companies are scrambling to develop products that take advantage of its many health benefits.

WTER has a big jump on its competition in this respect, thanks to a line of CBD-infused products that includes:

• A line of flavored CBD waters sold under the A88 Infused brand
• Hydrating body lotion and hand and foot cream
• Bath salts and muscle salve
• Essential oil, tinctures and lip balm
• Capsules and gummies

The company’s track record getting Alkaline 88® on shelves and its strong distribution network bode well for the growth of this line for The Alkaline Water Company.

Asset Light = Profitable Growth

A key component of WTER’s early success has been its asset-light business model.

Even as it has posted rapid growth, the company has done so on a relative shoestring and with a minimum of marketing spend.

Alkaline 88® has been flying off the shelves so far based mainly on word of mouth. That’s pretty amazing in a consumer goods category that typically devotes 24% of spending to marketing.

And yet, The Alkaline Water Company has gone from $0 to $46 million in sales in just eight years (with a distribution network capable of supporting four times that amount) while running a very lean operation.

Based on recent revenues, the company generates an astonishing $2 million in sales per employee. That’s close to 10 times the efficiency level of its competitors.

Indeed, just as this report was going to press, Alkaline projected $15 million of second quarter revenues (which represents almost 50% year-on-year growth) and reiterated its full-year guidance of $62 million in revenues.

Clearly, WTER is a company on the right track!

Likely On Big Beverage’s Radar

In a world where Big Beverage is constantly watching the specialty water sector for potential acquisitions, The Alkaline Water Company is an obvious candidate.

As the largest, free-standing specialty water company (one with an impressive growth track record and a business model built for profitability), a lucrative takeout appears almost baked into the cake for WTER.

Between its fast-growing, flagship Alkaline 88® water, its burgeoning international distribution channels and its high-potential line of CBD-infused products, is it any wonder Shaquille O’Neal has become a large shareholder of this dynamic company?

But with the M&A market red hot in this sector right now, you won’t want to wait long to follow Shaq’s lead on The Alkaline Water Company.

Indeed, you’ll likely want to start your due diligence on WTER today.

CLICK HERE
To Learn More about Alkaline Water Co.