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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