Key Highlights

  • The Calmer Co. International has entered an exclusive global distribution agreement covering its kava extract ingredients across Australia, New Zealand, the United States, Canada and ASEAN markets.
  • The distributor must meet minimum purchase commitments of approximately A$25 million over the initial three-year term, including about A$5.5 million in the first year.
  • The agreement provides a new channel for water-extracted and CO2-extracted Noble Kava ingredients while preserving existing wholesale customer relationships through agreed carve-outs.
  • The arrangement links the company's Pacific kava sourcing and Manufacturing initiatives with a multinational distribution network serving more than 60 countries.

The Calmer Co. International Limited (ASX:CCO) has expanded its botanical ingredients Business through an exclusive global distribution agreement with a multinational ingredients company. The agreement covers the company's kava extract ingredient range across Australia, New Zealand, the United States, Canada and ASEAN markets, subject to the distributor meeting agreed minimum purchase requirements. The initial three-year arrangement includes approximately A$25 million of minimum purchases, with about A$5.5 million required in the first year.

Global Distribution Agreement

Under the agreement, the distributor receives exclusive rights to distribute The Calmer Co.'s kava extract ingredients within the specified territory. The products covered include water-extracted and CO2-extracted Noble Kava products. Exclusivity is linked to annual minimum purchase requirements, with the commitments increasing during the second and third years of the initial term.

The agreement has an initial three-year duration and includes two additional three-year renewal options. Renewal rights are conditional on the distributor continuing to satisfy specified purchase and payment requirements. The structure therefore connects distribution rights with defined purchasing obligations over the contract period.

The distributor operates within a multinational ingredients group focused on plant-derived and natural healthcare ingredients. Its activities include supplying botanical, nutritional and plant-based raw materials to dietary supplement, sports nutrition and complementary medicine markets, with distribution extending across more than 60 countries.

Revenue Channel and Product Positioning

The arrangement adds an exclusive global distribution channel to The Calmer Co.'s existing wholesale ingredients customer base. Existing relationships are preserved through agreed Carve-Out arrangements, allowing the company to maintain those channels while adding the new distributor to its commercial network.

The agreement also includes co-branding provisions under which the distributor's ingredient Brand can appear on The Calmer Co.'s finished products using an "ingredient inside" presentation. This provides an additional commercial connection between the ingredient supplier and the company's consumer-facing product portfolio.

The company has identified Wholesale (Bulk Ingredients) as one of its four strategic pillars. The new agreement provides a contracted route to market for kava extracts while the business continues to operate across branded consumer products and ingredient sales.

Connecting Pacific Supply and Manufacturing

The distribution agreement follows a previously announced strategic supply arrangement with a Pacific-based supplier of premium noble kava. That agreement secured reserved minimum monthly supply capacity from Papua New Guinea and Vanuatu, with an indicative annual supply value of approximately A$8.65 million.

The two arrangements address different parts of the company's ingredient operation. The supply agreement provides access to raw materials, while the new distribution agreement establishes a committed Downstream channel for finished kava extracts.

The Calmer Co. is also developing manufacturing capacity through specialist extraction partners in Australia and India. Additional supercritical CO2 extraction capability is being added in Fiji through its manufacturing Partnership with Kaiming Agro Processing. The company expects these resources to support anticipated volumes under the distribution arrangement.

Commercial Protections and Quality Systems

The agreement contains several commercial provisions covering pricing, payment security and product quality. The company can review and amend pricing every 12 months through a periodic price review mechanism. Retention-of-title and security-interest provisions apply to unpaid stock.

Product specifications and quality warranties are also included, alongside mutual inspection rights. The company can inspect the distributor's storage facilities, while the distributor can inspect the company's production facilities. These arrangements establish defined requirements around product handling, manufacturing and quality assurance.

The Calmer Co. has also highlighted its quality systems and GC-MS laboratory capability as part of its broader approach to supplying Pacific kava extracts.

Conclusion

The exclusive distribution agreement gives The Calmer Co. a defined international sales channel for its kava extract ingredients, with minimum purchase commitments of approximately A$25 million over the initial three-year period. The arrangement extends across several major markets and complements the company's existing wholesale relationships, Pacific sourcing agreements and planned manufacturing capacity. By connecting raw-material access, extraction capabilities and international distribution within its kava value chain, the company is expanding the commercial structure supporting its Wholesale (Bulk Ingredients) strategy.