May 4, 2021 -- InvestorsHub NewsWire -- via MarketWatch -- Alkame
Holdings (OTC PINK: ALKM) took a giant step toward enhancing its revenue
stream by adding a new line to its flagship product. On Monday,
ALKM announced the product launch for its All-New Sugar-Free EVERx
CBD Sports Water. The specialty water will complement the already
marketed EVERx CBD Sports Water, which generated roughly $2 million
in sales last year. The sugar-free version has the potential to do
even better.
The move follows a trend in the sports and energy drink sector,
where "sugar-free" alternatives to brands like Monster Beverage
(NYSE: KO) are starting to fill shelves as consumers remain
"carb conscious" in their diets. For EVERx Sugar-Free CBD
Sports water, the move makes sense and leaves all the
benefits of its original formula while reducing calories and
removing unnecessary carbs. Expectations are for the new product to
earn massive consumer adoption.
More good news is that the new product also extends its
relationship with Puration, Inc. (OTC PINK: PURA), its long-term partner who was instrumental in
developing and bringing the original EVERx CBD Sports Water to
market. Even better, the team is working together to create new
CBD-infused products beyond EVERx and anticipate another product
announcement coming soon. When that happens, expect valuations to
follow higher, especially from having its distribution and
marketing team in place.
Partnerships And A New Facility
Another company will add logistical and sector expertise. Alkame
noted that along with PURA, North American Cannabis Holdings, Inc.
(USOTC:
USMJ) is on the team to assist with the market introduction
program for Sugar-Free EVERx CBD Sports Water. USMJ adds expertise
in the CBD space and can also maximize the product launch through
its familiarity with specific distribution channels.
Keep in mind, too, ALKM Holding has a strong distribution
network already in place, which could help accelerate product and
market penetration. Although the stock has been churning at
sub-penny levels, behind the scenes, it has been ramping up the
buildout of its new West Coast Co-Packer facility. The new facility
will nearly double production capabilities and utilize high-speed
equipment to expand production capabilities at the Salem facility.
Thus, revenues should get a substantial boost this year.
Beyond extra space and capacity, the new production location
will also allow ALKM to advance its third-party health inspections
beyond what it is currently able to accomplish. The better news is
that the Gervais facility enables ALKM to pursue one of the
highest-rated compliance certifications available. That
certification opens the door for exponential growth and will likely
enhance partnerships and create new opportunities for companies
needing a distribution and sales channel partner.
Better still, ALKM has also initiated a multi-channel
distribution strategy with a direct-to-consumer sales model, which
is expected to be deployed over the year. That model will leverage
its acquisition of DistributorCorp and provides an online avenue
for the company to supply Sanitizer and various PPE products to
national clients. Those products fit under its non-hemp related
products and include its Alkame brand of premium oxygenated
alkaline bottled water. The company is working to secure approvals
to export some of its popular consumer brands and
products.
And while the share price may be missing the mark today, once
these plans take further root, the expectation for a rapid increase
in shareholder value is undoubtedly well-placed.
Optimism In 2021
In fact, it can already be argued that Alkame Holdings may be in
its best operating position ever. An optimistic shareholder update
explained how the company adapted to the unprecedented economic
challenges to business and how its CEO positioned the company to
emerge from the difficulties faced in 2020. Most notable, he made
clear that while the disruptions were unprecedented, its supply and
distribution channels remain viable, and the slowly recovering
economic markets are providing some relief to retail
locations.
Thus, Alkame stock should be judged on what's happening now
instead of how it survived the pandemic-ridden markets. In fact,
Alkame Holdings has done well to enhance its capabilities and is
exceptionally well-positioned for a surge in growth from improved
facilities, new products, and accretive partnerships.
A Growth Spurt In 2021
Indeed, businesses faced an unprecedented challenge navigating
through the roadblocks placed by the pandemic. While many failed,
others took advantage of the unforeseen downtime to rebuild,
retool, and set new strategies to address a changing way of doing
business. Alkame is an excellent example of the latter.
Not only did the company survive the disruption, but its
distribution subsidiary contributed to stopping the spread of
COVID-19. That social contribution was simultaneous to its
advancing new strategies to compete in a changing consumer products
world. ALKM was a survivor, and they are stronger than ever.
The better news is that with restrictions easing across the
country, ALKM stock could be positioned for a rally as its products
and services make their way back into normalized market channels.
Analysts are united in saying that the pent-up demand for consumer
products could cause one of the most incredible snap-back rallies
of all time. And the spending will likely benefit all sectors.
For Alkame Holdings, its decisions to build up rather than break
down could return massive rewards this year. Indeed, its
improvements to facilities, the streamlining of its process
technologies to increase production and lower costs, and its
ability to create and maximize value-enhancing partnerships
positions ALKM to have its best year in history.
And with new products coming online and its facilities enhanced,
record performance could come sooner rather than later.
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SOURCE: MarketWatch
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