Coles boosts its exposure of The Calmer Co’s products by 40pc

Coles will increase The Calmer Co.’s product range by 40%
The expansion boosts kava product availability, likely driving sales
This expansion highlights the rising demand for natural wellness products

Special Report: Coles is set to expand The Calmer Co.’s product range by 40%, significantly increasing the availability of its kava products and potentially driving substantial sales growth.

The Calmer Co (ASX: CCO) says that effective from July 27, Coles Australia will expand the ranging of the company’s products around Australia by 40%.

This expansion means that The Calmer Co.’s products, known for promoting calmness, enhancing sleep, and offering an alcohol alternative, will now be available in 2,183 Coles locations, up from 1,563.

The increase in listings includes several key products that have shown remarkable growth and customer preference.

InstantKava 150g, Calmer Co.’s most profitable and best-selling item globally, will now be available in 632 Coles stores. This represents a substantial 90% increase in its market presence.

This product’s expanded reach is expected to significantly boost sales, reflecting its strong performance and popularity both in Australia and internationally.

Similarly, the Taki Mai Kava Shots, which have quickly gained traction in the market, will be stocked in 752 Coles locations, marking a 38% increase.

This rapid adoption highlights the growing consumer interest in convenient kava options that offer calm and relaxation.

Additionally, the Fiji Kava Instant Kava 50g, a product that has been on Coles’ shelves since 2022, will see its distribution grow to 799 stores. This expansion reflects the ongoing demand for The Calmer Co.’s kava offerings.

CEO Anthony Noble said the increase in product listings is a significant achievement for the company.

“The bottom line is that more products will be stocked by more stores across the Coles national supermarket network”, Noble said, adding that strong sales growth at Coles demonstrates that kava is now a broader and growing health trend in Australia.

“We are very excited that Coles has elected to significantly expand the ranging of our products.

“We are particularly optimistic about the potential uplift in sales value from the introduction of our 150g into 90% more stores.

“This SKU is our most profitable and bestselling product globally and is driving eCommerce growth in Australia and the USA,” said Noble.

Advertising campaign to increase sales

To support the increased product presence, The Calmer Co. will launch a targeted out-of-home advertising campaign starting in late August.

“The campaign will increase awareness of the products available in Coles as well as highlight in store location and the weekly specials across the range,” said Noble.

The company’s range of kava products will now be available in most Coles stores, with the exception of the Northern Territory and certain regions in Western Australia and Queensland.

This broader distribution not only reflects the growing demand for natural wellness solutions but also positions The Calmer Co. as a key player in the health and wellness sector.

Separately, the company has had an outstanding performance in the fourth quarter of FY24, achieving record sales significant growth and demonstrating strong progress across both its eCommerce and retail channels.

This article was developed in collaboration with The Calmer Co., a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.