The Alkaline Water Company is officially under new leadership after longtime CEO and President Richard “Ricky” Wright resigned, effective immediately, and was quickly replaced by company director Frank Lazaran on Friday.
Wright had been CEO, President and a director since 2013 at the publicly traded company which is focused almost exclusively on alkaline (8+ ph) water via its flagship brand Alkaline88. Its products are available in large and single-serve formats in about 80,000 major retail locations nationwide, according to the company. No reason was given for Wright’s exit.
“On behalf of the board, I want to thank Ricky for his tireless contributions to the growth and success of Alkaline88 over the last decade. Alkaline88 remains one of the fastest growing independent water brands worldwide, and Ricky was a key contributor to the growth of the brand,” said Alkaline Water Co. chairman Aaron Keay in a statement released Friday morning. “We appreciate his efforts and dedication to the Company and wish him the best with his future endeavors.”
Stepping in is Lazaran, who most recently served as Chairman, Chief Executive Officer and President of Marsh Supermarkets, having previously worked in the same roles at supermarket chain Winn-Dixie. According to his LinkedIn profile, Lazaren has been a member of the advisory board at Alkaline Water Co. since 2017.
“We are excited to have Frank join The Alkaline Water Company as the Chief Executive Officer and extremely confident Frank and the team can lead us into the next phase of our growth with Alkaline88,” said Keay. “Frank brings over 40 years of strategic execution, operational management, and innovation in the retail sector, as well as capital markets experience that will help continue to accelerate the Company’s top line growth along with bringing a heightened attention towards profitability for the Company.”
Shares of Alkaline Water Co. opened 13% higher (52 cents) on Friday after the announcement.
During the company’s Q3 FY2022 earnings report in February, Wright cautioned that “excellent” sales – fueled in part by an expanding DSD presence primarily in the Southwest – have been tempered by “significant margin correction as a result of inflationary pressures over the last 12 months.” Last month, it announced a $5 million public offering to service debt and help pay operating expenses.
Despite posting an operating loss of nearly $11 million (+259% year-over-year) in Q3 FY2022, the company has maintained its guidance for $62 million for the full fiscal year.
In the statement, Keay alluded to Lazaren’s prior experience in helping companies turn back towards profitability.
“With evolving economic conditions that are impacting both retailers and consumers across multiple channels, Alkaline88 will continue to put its attention to improving the Company’s bottom line with a renewed focus towards profitability in the foreseeable future,” said Keay. “The appointment of Frank is consistent with his personal track record of being put into similar positions over his career and is aligned with the Company’s direction, along with our board of director’s mandate, to evaluate optimization measures while continuing the brand’s consistent and stable growth. We look forward in the very near future to disclosing the Company’s pathway to profitability and providing financial guidance for next fiscal year.”
Keay reiterated the company’s approach in a separate letter to shareholders.
“The current economic environment is posing many challenges for retailers and consumers which directly impacts the way a brand such as Alkaline88 operates. Frank’s vast experience in operational management, optimizing company performance and scaling organizations couldn’t come at a better time for the Company.”