American Water Star has said that 70% of its excess product inventory has been purchased by a nationally prominent retailer for immediate distribution.

"The significant reduction in present inventory will impact the opportunity for greater distribution and market presence nationally," a statement from the company said.

In an strategy update, the beverage bottler said that it was in negotiations with a "prominent national/international bottler" to manufacture and produce three gallon and five gallon water container products that will be sold through two of the country's largest retailers.

It has also reached an agreement in principal to sell water and beverage to a regional food chain based in San Diego, estimated to begin mid-July.