SUNBIZ

Coles Is First Global Retailer To Market Fiji Kava Capsules

Kava’s role in complementary and alternate medicine market is experiencing rapid growth globally.
25 Feb 2020 13:59
Coles Is First Global Retailer To Market Fiji Kava Capsules
Australia’s leading national retailer Coles will sell a range of FijiKava pills.

Fiji Kava Ltd (ASX: FIJ), an Australian-Fijian medicinal kava health and wellness company which produces natural ‘noble kava’ products for the complementary and alternative medicine market, has secured a major supply agreement in Australia.

This will leading national retailer Coles to range the company’s new and existing noble kava capsule varieties in selected supermarkets nationally and online.

The agreement will see Coles range Fiji Kava’s existing noble kava extract capsules and three new noble kava varieties, consisting of ‘Sleep’, ‘Mind’ and ‘Body’ capsule ranges uniquely formulated to promote sleep, soothe and calm the nerves and relax the mind and body.

First global retailer

Coles will be the first retailer globally to range these three new product innovations.

The products are expected to be on-shelf at select Coles supermarkets nationally and available via their online store in June.

In preparation for the launch, Fiji Kava over the next three months will scale-up production at its manufacturing plant in Fiji to produce required inventory across both new and existing noble kava varieties.

The pricing details of the agreement are confidential but are expected to deliver a step change increase in domestic revenues as the company materially expands its retail footprint in Australia, via the Coles supermarket and online network.

Milestone

Founder and chief executive officer Zane Yoshida, said: “This is a major milestone in Fiji Kava’s journey, significantly increasing our retail points of distribution and availability across Australia.

“While the economic impact of the agreement to the Company is not able to be determined at this time, we believe it will result in an uplift of consumer awareness, as well as increased sales of Fiji Kava’s products.

“There are no other material terms to the agreement.”

The agreement with Coles continues a period of strong and sustained progress being made by the company on its commercial strategy to grow the availability of its Fijian noble kava.

The company now has cornerstone retail agreements in place in targeted markets, and has expanded its e-commerce presence including launching on Amazon, and is also exploring opportunities to access Chinese eCommerce and Daigou marketplaces.

Mr Yoshida said the growing interest in Fiji Kava from retailers and distributors was being driven by the company’s strategic vision and key differentiators in the complementary and alternative medicine market.

“Fiji Kava’s vertical integrated supply chain, which includes the world’s first noble kava tissue culture laboratory and our nucleus estate in Fiji, guarantees a sustainable and 100 per cent traceable supply of unadulterated noble kava, the key ingredient for Fiji Kava’s products.

“We are able to produce this at scale to meet growing demand globally for kava, for consumers that are looking for natural alternatives to tackle issues such as stress and insomnia.”

“Kava’s role in the complementary and alternate medicine market is experiencing rapid growth globally.

“The agreement reached with Coles to range Fiji Kava’s noble kava varieties as a natural alternative to prescription medicines, to promote sleep, soothe and calm the nerves and relax the mind, is a vote of confidence that will only enhance the appeal to consumers both domestically and internationally,” Mr Yoshida said.

To raise further awareness and drive sales, the launch in June will be supported by a strong trade media campaign in Coles and investment in consumer brand marketing.

Feedback: maraia.vula@fijisun.com.fj

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