A1Rwater, a US based beverage company headquartered in South Florida, is introducing a new approach to sourcing drinking water that does not rely on traditional groundwater or reservoir supplies.
A1Rwater produces drinking water from humidity in the air using atmospheric water generation (AWG) technology.
While AWG technology is not exclusive to A1Rwater it is a relatively new concept that is seen as a potential solution to help with drought conditions, climate change and sustainable sourcing.
But what is different about A1Rwater is its approach to the new technology by commercialising the product as a beverage brand.
The company generates, purifies and mineralises the water before packaging it in aluminium cans, and soon to be glass, for distribution across hospitality, sports venues, retail and direct-to-consumer channels.
The company is run by Pete Carr, chief executive officer, who has held senior leadership roles at drinks giants Bacardi and Diageo, where he worked across commercial strategy, brand building and business growth and Ryan Bibbo, chief operating officer, who has also held leadership roles at major beverage companies including Bacardi and Diageo.
Carr first encountered the technology on a visit to Dubai and quickly recognised its commercial and sustainability credentials.
“I said to myself, you guys are actually making water in the middle of the desert. You gotta be kidding me,” he said.
Originating in the UAE Carr and Bibbo brought the concept to the US.
The operation has two divisions, a branded water product with four SKUs in both still and sparkling and an equipment division that sells the technology to enable customers to produce their own water.
It has already established a presence in South Florida through key sports partnerships in the area with Inter Miami CF at Miami Freedom Park, the Miami Heat at Kaseya Center, and a national distribution agreement with Southern Glazers Wine & Spirits that will scale A1R water’s retail availability.
The company is positioning itself firmly at the premium end of the sector, in terms of branding and pricing, with the current focus on the US market, but longer terms plans for further expansion with suitable partners.
“We don’t want to be in Walmart, we don’t want to compete against a 48-pack of water,” Carr said.
“I’m not going after water. I’m going after functional beverage. What would you spend on a cup of coffee? What would you spend on an energy drink? I feel like we can play in that space because that same consumer is buying a specialty item and hydration’s the key to anything as we go forward.”
As well as the water brand the company is focusing on selling the equipment to produce the water.
The company manufactures and sells the equipment systems ranging from counter-top consumer units to 3,000 litre/day industrial systems that can supply utility-scale water farms.
But the clever approach of the equipment, that looks like an air conditioning unit, means that once the water is distilled the system makes it drinkable by adding minerals at the end of the water process including sodium, potassium and Magnesium with a 30-day filter pod.
The company said it already has interest from the military in its equipment but also has interest from schools and off-grid housing.
One issue has been the high power useage of these systems but the company is working to bring in solar panels and other technology to drop the energy use.
“We’re playing with things from everything from solar that’s connected actually to the machine itself, where it could run on the same amount of electricity that you would run a toaster,” said Bibbo. “But still produce 2,000 to 3,000 litres of water a day. It’s kind of mind blowing in terms of how that part is going.”
But there is also a larger holistic plan as the equipment has great ability to support drought regions of the world and the company does have a “give back” strategy.
“We don’t want to walk away from humanitarian opportunities that exist, but you have to have a flywheel that makes money. Otherwise, you just become a fundraiser trying to support these endeavours,” said Carr.
“If we produce water, we can sell it. There’s a big revenue stream in there, and then we can back into how we can support communities from there.”
Meanwhile, Bibbo believes the sector is only at the beginning of its development as consumer interest in sustainability and wellness continues to grow.
“We’re going to see quite a bit of innovation in this space over the next 10 to 15 years,” he predicted.
