The deal can be a PPE game changer for ALKM. With a logistics hub in
The company's shift into the PPE sector is expected to translate into a long-term opportunity for the company as it complements its regular co-packing services. That co-packing business, in and of itself, is expected to rise in valuation following the eventual easing of pandemic-related headwinds.
Indeed,
The proof is in the markets. Sugar-free alternatives to brands like
The Benefits of an Additional Facility
ALKM is also actively collaborating with another company who can provide a new angle of logistical and business experience to the company. This company is
Keep in mind, ALKM already has an established distribution network, and this new product and partnership could help expand their product range and customer base. Despite the fact that the stock is trading at sub-penny levels, the company firm has been working tirelessly behind the scenes to finish the building of a new West Coast Co-Packer plant. The new plant would almost double manufacturing capabilities thanks to its higher-speed machines, and this increase in production volumes alone could result in a significant increase to sales as early as this year. Therefore, the current prices appea rto substantially undervalue its assets.
Apart from the extra space and capacity, the new production location will allow ALKM to boost its industry status through securing new and important regulatory certifications. Specifically, the
ALKM has already laid out a multi-channel marketing strategy that includes a direct-to-consumer business model, which will be launched in 2021. Based on the company's previous acquisition of DistributorCorp, this model would facilitate the online purchasing and subsequent distribution of sanitizer and similar PPE products to clients across the nation. PPE materials are included in the company's non-hemp-related product division, which also contains the Alkame brand of premium oxygenated alkaline filtered water. ALKM is actively pursuing export licenses for a number of its best-selling brands and products.
There's more.
ALKM is Strong in 2021 Thanks to a Smart 2020
This year has put
In fact,
Armed With New Capabilities, ALKM Bringing its All for 2021
Without a doubt, companies faced an unparalleled challenge in working around the pandemic's economic volatility. Although some companies failed to keep up, some used the downtime to formulate new plans to deal with a shifting retail climate - the latter being greatly exemplified by
Not only did the company smartly maneuver through the pandemic, but its manufacturing division also assisted with the distribution of sanitizer and personal protective equipment (PPE) to help deter the outbreak of COVID-19. With all of this in mind, ALKM is not only a survivor, but they have demonstrated their ability to think on their feet and make the most of any opportunity they are presented with.
The good news is that as COVID-related constraints are being loosened across the world, ALKM stock could rise in tandem as its products and services re-enter normalized consumer networks. Analysts believe that pent-up demand for consumer goods could lead to one of the most spectacular economical snap-back rallies in history, with higher consumer spending expected to provide more than just relief in industries worldwide.
With new products in development and its additional facilities nearing completion,
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