Company Interview / Kickstarting the kava market

Key Points:

Record December revenue driven by regulatory clarity and wholesale demandExpansion into higher potency kava products with advanced extraction technologyMajor distribution through Coles and Woolworths, and growth on Amazon USARising health trends and reduced alcohol use among Gen Z supports sales

Zane Yoshida of The Calmer Company (ASX: CCO) highlights a record revenue month in December, attributing growth to regulatory clarity in the United States and surging wholesale demand. A key factor is the expansion into higher potency kava formats, utilising advanced CO2 extraction technology and successfully launching at major industry events, such as the SupplySide Global expo in Las Vegas. Yoshida notes that recent decisions in states like Hawaii and Minnesota, as well as a federal move towards recognising kava as a food when mixed with water, have aligned with global regulatory frameworks, bolstering market confidence.

Yoshida points to supply chain advantages amid US-China tariff headwinds, enabling the company to secure significant new customers and accelerate wholesale growth. Distribution through major Australian retailers like Coles (ASX: COL) and Woolworths (ASX: WOW), as well as an omnichannel push including direct-to-consumer websites and Amazon USA, underpins strong domestic and international sales. Coles first embraced kava through capsule formats, later expanding with instant powder products under the Fiji Kava brand.

Addressing shifting consumer habits, Yoshida observes declining alcohol consumption, particularly among Gen Z, and the increasing adoption of kava as a wellness beverage. Clinical evidence supporting kava’s role in reducing anxiety and aiding sleep is seen as driving repeat purchases and strengthening loyalty, with new sourcing from Papua New Guinea and the Solomon Islands further supporting growth.