The Calmer Co has reported record sales of its Kava products in Q3 FY24. Pic: Getty Images.
Health & Biotech
Special Report: Global kava sales continue to boom amidst the rising wave of health-conscious consumers looking for products to replace alcohol, reduce anxiety, and assist sleep.
ASX listed The Calmer Co International (ASX:CCO) is one company that is leveraging this opportunity in products that aid relaxation principally through Fijian grown noble kava.
Over 15 years the company has built a true vertical supply chain from farm to table sourcing produce from around 20,000 kava farmers throughout the Fijian islands.
The company is now diversifying brands and products as it expands internationally to meet rising demand in western markets.
Daily eCommerce sales have shown strong growth and are up over 400% against the same period last year. April figures continue this uptrend with the average daily eCommerce sales now exceeding $11,000 per day.
The Calmer Co also launched a new product. Taki Mai kava shots went onto shelves in Coles supermarkets across Australia in late March.
These kava shots contain only cold pressed kava and the Calmer Co is presently the only company capable of delivering this product to market.
April sales results have been extremely promising, with Coles scan sales over the initial launch period exceeding $150k. Sales and were running at over $30k per week and >4600 units per week, in week 8 after launch (ie: May 5th -11th).
CEO Anthony Noble said: “Profitable retail is an important growth pillar and Coles Australia has been our primary partner in this channel. The initial sales results seen for the new range of three products in Coles are extremely promising and this is now backed up by scan data showing a rapid acceleration in both value of retail sales and units sold across the discount cycle in Coles.”
The full Q3 sales figures released earlier this month tell the broader story with strong sales growth across the board in Australia and the US, especially in the area of e-commerce where early adopters are sourcing drinking kava.
Quarterly highlights were:
These results were set while dealing with an out-of-stock event in February as the business adjusted its inventory management to keep up with booming demand.
Coles were not the only distribution partner to launch new products last quarter as Walmart, the USA’s largest retailer launched kava products with The Calmer Co from their online channel, Walmart.com.
The Calmer Co has a vision to become the dominant kava company in the world, which remains on track as the business focuses on meeting rising global demand.
CEO Anthony Noble said, “Over the period, the business delivered pleasing growth initiatives as Taki Mai shots were launched in Coles, our products were launched on Walmart.com and the Shopify store was opened for the US market.
The business is maturing as a fast-growing FMCG business, and I look forward to delivering ongoing growth and improved value for all shareholders.”
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.
Health & Biotech
Health & Biotech
Health & Biotech
