highlights:

  • The Calmer Co has executed a long-term Strategic Supply Agreement with a Pacific-based premium noble kava supplier.
  • The agreement secures reserved supply capacity of 10 tonnes per month from Papua New Guinea and Vanuatu.
  • The arrangement carries an indicative annual supply value of approximately A$8.65 million based on reserved capacity.
  • The agreement supports the company’s vertically integrated kava sourcing, manufacturing and consumer product strategy.

The Calmer Co International Ltd (ASX: CCO) announced that it has entered into a Strategic Supply Agreement with a Pacific-based supplier of premium noble kava, securing long-term access to raw materials sourced from Papua New Guinea and Vanuatu. The agreement forms part of The Calmer Co’s strategy to strengthen its supply chain supporting branded consumer products, botanical ingredients and future manufacturing activities.

Long-Term Kava Supply Agreement Strengthens Procurement Network

The Strategic Supply Agreement provides The Calmer Co with reserved minimum monthly supply capacity of premium noble kava from the Pacific region. Under the agreement, the supplier will reserve a combined minimum capacity of 10 tonnes per month, consisting of five tonnes per month from Papua New Guinea and five tonnes per month from Vanuatu.

The reserved supply capacity represents a supply-side commitment from the supplier and does not create a minimum purchase obligation for The Calmer Co. The company retains discretion regarding order volumes and timing under the agreement.

The agreement has an indicative annual supply value of approximately A$8.65 million based on the reserved minimum monthly capacity. The supplier is described as an established Pacific-based kava supplier with annual turnover of approximately A$38 million.

Expanding Pacific Sourcing Strategy

The agreement expands The Calmer Co’s existing procurement activities in Fiji by adding long-term sourcing arrangements in Papua New Guinea and Vanuatu. The company’s sourcing network now spans multiple Pacific origins, providing access to premium noble kava across several producing regions.

The company stated that diversified sourcing is designed to support procurement flexibility and supply continuity for its branded consumer products and wholesale botanical ingredients business.

The arrangement also aligns with The Calmer Co’s broader strategy of developing an integrated Pacific kava business covering sourcing, manufacturing and global commercialisation.

Supporting Manufacturing and Consumer Product Growth

The supply agreement supports The Calmer Co’s existing manufacturing capability of approximately five tonnes of dried kava per week. Additional manufacturing capacity is expected to become available through a previously announced Heads of Agreement with Kaiming Agro, subject to completion of definitive agreements.

By securing additional access to premium noble kava, the company is building a raw material supply base intended to support production requirements across its product categories.

The company’s portfolio includes kava-based products such as drinking powders, flavoured kava shots, concentrates and capsules sold under brands including Fiji Kava, Taki Mai and Danodan Hempworks across markets including the United States, Australia, New Zealand, China and Pacific Island nations.

Quality Assurance and Supply Chain Standards

The Strategic Supply Agreement includes a quality assurance framework covering product specifications, Certificates of Analysis, laboratory testing, sampling procedures, traceability requirements, packaging standards and supplier performance reviews.

These procedures are intended to maintain consistency across The Calmer Co’s expanding Pacific sourcing network and support quality management across consumer products and botanical ingredient sales.

The company is also participating in regional initiatives focused on developing harmonised kava quality and production standards across Pacific-producing nations.

Building an Integrated Kava Business Model

The agreement represents another step in The Calmer Co’s vertically integrated operating model, which combines supplier relationships, quality assurance capabilities, manufacturing partnerships and consumer product development.

The company’s strategy involves securing access to premium kava resources while developing value-added products for international retail, beverage and ingredient markets.

The supplier agreement complements previous strategic initiatives focused on expanding manufacturing capability and strengthening the company’s position within the global natural products sector.

Conclusion

The Calmer Co’s long-term kava supply agreement provides additional supply capacity from Papua New Guinea and Vanuatu while expanding its Pacific sourcing network. The arrangement supports the company’s focus on building an integrated supply chain for premium kava products, with ongoing activities centred on procurement, manufacturing capability and international commercialisation.