FijiKava Buys Into Leilo, The Future’s Non-Alcoholic Relaxation Drink

A medicinal company with roots to Fiji is expanding its investments in America, as a 100 per cent share swap transaction concludes this month with Leilo Inc, makers of what has been described as the world’s best kava.

FijiKava Limited, an Australian- listed company, has completed a AU$1.6 million (FJ$2.3 million) placement for Leilo Inc, which is is expected to support inventory for rapid rollout of Leilo into FijiKava’s national US retail broker network.

Leilo, a ready-to-drink (RTD) brand in the United States, has been described by Forbes and New York Post as the future of non-alcoholic relaxation, for its kava content.

Dream Acquisition FijiKava holds a binding agreement to acquire Leilo Inc, in an all-stock acquisition.

The acquisition gives FijiKava access to Leilo’s more than 700 doors of retail distribution in North America and growing market share on Amazon.com FijiKava managing director and chief executive officer, Anthony Noble, said Leilo was truly “our dream acquisition”.

“This deal also helps us build the scale required to reach profitability sooner,” he said.

“I am particularly proud to have Leilo founder, Sol Broady, leading the strategy for this fast-growing brand."

“We have seen significant retailer interest in all our kava products, and especially in liquid formats, such as dietary shots and RTDs.

“Leilo will now be our brand taking these formats to market in the USA, the Pacific, and internationally.”

According to a market announcement, The Calmer Co., incorporating Leilo alongside Danodan, FijiKava and Taki Mai, now has the entire DNA to become the next blockbuster functional beverage company.

“In addition to material cost of goods savings delivered through integration of the Leilo products into our vertically integrated supply chain in the Fiji Islands, there are a number of immediate cross selling opportunities for The Calmer Co. products into the Leilo distribution network,” Mr Noble said.

“We have become a bigger, broader business with revenues over four million per year, now growing faster than ever.”

Ten-fold

Sol Broady, Leilo founder and chief executive officer, said the opportunity presented a large and lucrative globally consolidated kava company.

“By joining forces with FijiKava, Leilo gains not only a significantly strengthened supply-chain traceable back to the Fiji Islands, but also a diversified product portfolio

to offer to our existing customers,”Mr Broady said.

Leilo debuted in 2020 and launchedwith a variety of flavours in early 2021, after which it grew ten-fold over the following months.

Feedback: frederica.elbournne@fijisun.com