The Calmer Co International Ltd Signs Fiji Manufacturing HOA to Scale Extracts

Calmer Co. locks in Fiji manufacturing partnership to scale kava, ginger and turmeric extracts

The Calmer Co. International Limited (ASX: CCO) has entered into a Binding Strategic Partnership Heads of Agreement (HOA) with Pacific Culture and Heritage Pte. Ltd (KAPPL), a subsidiary of Kaiming Agro Processing Pte Ltd, to scale global production of kava, ginger and turmeric extracts.

The agreement combines KAPPL’s advanced manufacturing capability, including supercritical CO₂ extraction, with Calmer Co.’s premium brands, proprietary formulations and global commercialisation expertise. Under the framework, Calmer Co. would be appointed exclusive global commercialisation partner for agreed kava, ginger and turmeric CO2 extract products manufactured by KAPPL.

Importantly, the HOA establishes a framework to negotiate definitive agreements. It represents a pathway for a long-term partnership rather than a completed transaction, with most benefits subject to execution of definitive documentation.

What the partnership delivers

The HOA sets out the core structure of the proposed collaboration, aligning each party’s strengths across manufacturing and commercialisation. Key terms include:

• KAPPL to become Calmer Co.’s preferred manufacturing partner for agreed Fiji-manufactured products, subject to execution of definitive agreements

• Calmer Co. appointed exclusive global commercialisation partner for agreed kava, ginger and turmeric CO2 extract products, subject to the Company continuing to actively develop and commercialise these products internationally

• KAPPL currently constructing an advanced manufacturing facility in Navua, Fiji, with commissioning expected in December 2026

• The partnership adds supercritical CO₂ extraction capability within Fiji, complementing Calmer Co.’s existing specialist extraction partners in Australia and India

The agreement preserves Calmer Co.’s core competitive strengths while introducing KAPPL’s manufacturing infrastructure. The following table sets out how responsibilities would be divided under the proposed operating model.

The KAPPL agreement is not Calmer Co.’s first commitment to expanding its Fiji manufacturing footprint; the Company separately secured a non-repayable AUD$354,000 Fiji government grant earlier in 2026 to expand RTD kava beverage production at its Navua facility.

Understanding supercritical CO₂ extraction and premium botanical ingredients

The term “value-added processing” refers to locating advanced extraction capability closer to the Company’s premium raw material supply, increasing production flexibility as international demand continues to grow.

The market opportunity behind the deal

Independent market research cited in the announcement points to continued global growth across the botanical extract categories relevant to the partnership. This data has been sourced from independent third-party reports and has not been independently verified by the Company.

• Turmeric: approximately US$4.9B (2025) rising to US$8.4B (2035), a 5.5% CAGR — Future Market Insights

• Ginger extract: approximately US$1.36B (2025) rising to US$2.30B (2035), a 5.4% CAGR — Market Research Future

• Kava root extract: approximately US$1.87B (2025) rising to US$7.40B (2034), a 16.58% CAGR — Fortune Business Insights

Rather than duplicating manufacturing investment, the partnership is intended to allow Calmer Co. to leverage KAPPL’s capital spend, creating a scalable and capital-efficient operating model that lets each organisation focus on its respective strengths.

Zane Yoshida, Chief Executive Officer of The Calmer Co.

“This Partnership represents one of the most significant strategic initiatives undertaken by The Calmer Co. in recent years…”

“The Calmer Co. will continue to control our premium raw material supply, internationally recognised brands, intellectual property and global customer relationships, while leveraging KAPPL’s advanced manufacturing capability…”

A three-phase roadmap for growth

The HOA establishes a phased framework designed to progressively expand the partnership as commercial milestones are achieved. Progression beyond Phase One is not automatic and remains subject to milestones, definitive agreements and all required approvals.

Phase One – Strategic Manufacturing Partnership

The initial phase, subject to execution of definitive agreements, would focus on establishing the manufacturing relationship and transitioning agreed production to KAPPL’s new facility. Key initiatives include:

1. Relocation of agreed manufacturing equipment to KAPPL’s facility and long-term equipment lease arrangements

2. Manufacture of Fiji Kava®, Taki Mai® and Authentic Kava® branded consumer products

3. Manufacture of premium botanical ingredients and extracts

4. Implementation of quality assurance systems and operational governance

5. Commencement of commercial production following commissioning of KAPPL’s facility

Phase Two – Manufacturing Asset Transition

Subject to successful implementation of Phase One and mutual agreement, Phase Two provides a framework to evaluate the possible acquisition of leased equipment by KAPPL, expansion of manufacturing capacity and additional value-added processing capability.

Phase Three – Strategic Integration

Subject to the earlier phases, future negotiations, definitive agreements and all required corporate and regulatory approvals, the HOA provides a framework to evaluate broader integration opportunities. These may include equity participation, joint venture arrangements and the contribution of manufacturing assets. This phase is exploratory and subject to future agreement.

Why it matters for investors and what comes next

The proposed model is designed to be capital-light, allowing Calmer Co. to avoid heavy manufacturing capital expenditure while gaining access to advanced extraction capability. It complements, rather than replaces, the Company’s existing specialist extraction partners in Australia and India.

By adding advanced processing within Fiji, the partnership is intended to strengthen supply chain resilience and increase value-added botanical processing closer to the Company’s premium raw material supply.

The capital-light manufacturing model underpins Calmer Co.’s broader US retail expansion, where the Company has appointed specialist brokerage VDriven to drive physical retail distribution alongside its existing Amazon USA presence.

Calvin Qiu, Managing Director of Kaiming Agro Processing Pte Ltd

“We see The Calmer Co. as the ideal strategic partner. Their internationally recognised brands, product innovation and established global customer relationships complement our manufacturing expertise and create significant opportunities for both organisations.”

Following execution of the HOA, the parties will commence negotiation of the definitive agreements required to implement Phase One. These are expected to include:

• Equipment Lease Agreement

• Contract Manufacturing Agreement

• Quality Agreement

• Minimum Performance Targets

• Product Specifications

• Manufacturing Transition Plan

• Implementation Governance Framework

Implementation of Phase One remains subject to execution of definitive agreements, commissioning of KAPPL’s advanced manufacturing facility (expected December 2026), satisfaction of agreed conditions precedent and completion of operational readiness activities. The Company has stated it will continue to update shareholders as material milestones are achieved.

Don’t Miss the Next Consumer Staples Winner on ASX

Big News Blast delivers FREE breaking ASX news straight to your inbox within minutes of release, complete with in-depth analysis already done for you. Join 20,000+ subscribers staying ahead of market-moving announcements across consumer and beyond. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment news breaks.