The Calmer Co. locks in A$8.65 million premium kava supply deal
The Calmer Co. International Limited (ASX: CCO) has executed a long-term Strategic Supply Agreement with a leading Pacific-based supplier of premium noble kava, securing upstream access to raw material sourced from Papua New Guinea and Vanuatu.
The deal reserves a minimum monthly supply capacity of 10 tonnes per month, carrying an indicative annual supply value of approximately A$8.65 million. This strengthens the company’s Pacific sourcing network and reinforces its vertically integrated strategy of creating greater value from premium Pacific kava across branded consumer products and its botanical ingredients business.
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Inside the Strategic Supply Agreement
Under the Agreement, the Supplier will hold a reserved minimum of five tonnes per month from Papua New Guinea and five tonnes per month from Vanuatu, giving The Calmer Co. a combined reserved capacity of 10 tonnes per month.
Critically, this reserved capacity represents a supply-side commitment by the Supplier and does not constitute a minimum purchase obligation on The Calmer Co. The company retains full discretion over order volumes and timing. The A$8.65 million figure is therefore an indicative value based on the reserved minimum monthly capacity, not a committed spend.
| Deal Feature | Detail |
|---|---|
| Reserved capacity | 10 tonnes/month (5t PNG + 5t Vanuatu) |
| Indicative annual supply value | Approx A$8.65 million |
| Supplier scale | Annual turnover approx A$38 million |
| Nature of commitment | Supply-side reserved capacity held by Supplier |
| Purchase obligation | None; CCO retains full discretion over order volumes and timing |
The Supplier is described as an established Pacific-based supplier of premium noble kava with annual turnover of approximately A$38 million, reflecting its scale as a strategic sourcing partner.
Built-in quality assurance
Beyond supply commitments, the Agreement incorporates a comprehensive quality management framework designed to support consistency and traceability across the company’s expanding sourcing network. The framework covers:
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Agreed product specifications
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Certificates of Analysis
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Laboratory testing and sampling protocols
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Packaging and storage standards
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Annual supplier performance reviews
These measures are designed to support customer confidence across both branded consumer products and wholesale botanical ingredient channels.
Why kava supply security matters
Noble kava is a Pacific plant traditionally used to promote relaxation and sleep, increasingly featured in consumer products positioned as alcohol alternatives.
Vertical integration refers to controlling multiple stages of the supply chain, from sourcing raw material through to manufacturing and finished branded products. For a consumer goods business, reliable raw material access helps de-risk growth. By diversifying procurement across three origins, Fiji, Papua New Guinea and Vanuatu, The Calmer Co. reduces its reliance on any single source and enhances procurement flexibility.
Feeding the manufacturing engine
The Agreement complements the company’s existing manufacturing capacity of approximately five tonnes of dried kava per week. Securing 10 tonnes per month upstream strengthens the raw material foundation required to support continued growth across branded consumer products and botanical ingredients.
Additional manufacturing capability is expected to become available through the previously announced Heads of Agreement with Kaiming Agro, subject to completion of definitive agreements. This sits alongside advanced manufacturing through strategic partners including KAPPL and scientific quality assurance via the company’s GC-MS laboratory capability.
The Kaiming Agro manufacturing partnership targets exclusive global commercialisation rights for kava, ginger and turmeric CO2 extracts produced at a new Fiji facility scheduled for commissioning in December 2026, adding a capital-light extraction tier to the company’s integrated operating model.
Together, these initiatives reflect continued execution of the company’s strategy to build an integrated Pacific kava business spanning sourcing, manufacturing and global commercialisation.
CEO’s perspective
Chief Executive Officer Zane Yoshida framed the Agreement as an important step in strengthening the company’s upstream supply chain.
Zane Yoshida, Chief Executive Officer
“Securing reliable, long-term access to premium noble kava is fundamental to our growth strategy. This agreement strengthens our sourcing capability across the Pacific, enhances supply chain resilience and provides greater confidence as we continue expanding our manufacturing capability and global commercial presence.”
The investment thesis and what comes next
The Agreement reinforces The Calmer Co.’s vertically integrated operating model, which runs from diversified grower relationships across Fiji, Papua New Guinea and Vanuatu, through strategic procurement and scientific quality assurance, to premium branded products sold under the Fiji Kava®, Taki Mai® and Danodan Hempworks brands across the USA, Australia, New Zealand, China and the Pacific Islands.
The company’s positioning is further supported by its active engagement in regional standards development. CEO Zane Yoshida participated in the inaugural meeting of the Pacific Islands Standards Committee’s Technical Committee 3 (TC3) on Kava Standards, held in Sydney in April 2026, part of broader efforts under the Pacific Regional Kava Development Strategy (2024–2028) to harmonise quality and production standards across Pacific kava-producing nations.
Looking ahead, key items on the company’s execution path include completion of the Kaiming Agro definitive agreements, continued value-added manufacturing expansion in Fiji, and scaling to meet growing global demand for premium noble kava.
By securing reliable access to premium raw materials and manufacturing capability through strategic partnerships, the model allows The Calmer Co. to concentrate its own capital and management focus on product innovation, brand-building and global commercialisation.
Record wholesale channel performance in December 2025, when monthly revenue reached A$910,767, illustrates the commercial demand the company is now building supply infrastructure to sustain, with the wholesale channel alone exceeding its full FY25 annual result within six months of FY26.
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