Fiji Kava expands partnership with Network Nutrition to add beverage-ready extracts

Published: 26-Jul-2022

The Australian-Fijian medicinal kava company has agreed that its bulk raw ingredients will now be sold via Network Nutrition as Authentic Fijian Kava or Kavaton into the nutraceutical and food markets in ANZ and the ASEAN regions

Fiji Kava, an Australian-Fijian medicinal kava company that produces natural 'noble kava' products to reduce anxiety, promote relaxation and improve sleep, has extended its strategic partnership with Network Nutrition, a specialty ingredients brand which is part of the EUR8b Dutch publicly listed multinational, IMCD.

FijiKava is the first and only foreign company with approval from the Fijian Government to operate in the kava industry.

Fiji Kava's bulk raw ingredients will now be sold via Network Nutrition as Authentic Fijian Kava or Kavaton into the nutraceutical and food markets in ANZ and the ASEAN regions.

The strategic partnership will also be expanded to develop new beverage-ready extract formulations and bulk premixes for beverages, significantly simplifying Fiji Kava's supply chain for manufacturing in the US.

Fiji Kava CEO, Dr Anthony Noble, said: "We have seen great performance by Network Nutrition in terms of sales in the US Specialty Ingredient channel. We have seen strong sales to IMCD in Q2 and Q3, and from Q1 we will move to new trading terms and shift to sea freight, so as to increase the profitability for FijiKava of this channel to market which is increasingly important for our plans to evolve our business model."

Our plan is to co-develop a beverage-ready kava extract utilising our Noble Fijian Kava supply chain

"The value-add of working through Network Nutrition for us is both technical and logistical," Noble explained. "The team has streamlined the way in which we test the quality of our products, which has resulted in a significant cost saving for Fiji Kava, as we previously outsourced quality assurance to contracted labs prior to the partnership with IMCD. The expansion of territories to include Australia, Canada and ASEAN is a natural next step, as Fiji Kava will focus on sales and marketing of our branded products, with an increased USA and beverages focus."

The CEO when on to say that the outcomes through co-investing in R&D include; development of analytical laboratory testing methods for assurance of product quality and safety and scientific a 'deep-dive' on the chemical characterisation of the extract, sold as Kavaton. "The IMCD team's intimacy with the product is key for unlocking incremental marketing opportunities and dramatically improved our scientific backing for the extract products. This is critical for attracting new B2B customers. The pedigree of clients secured by Network Nutrition so far are testimony to that. To have a partner with the deep capabilities of the IMCD group sets us up for faster growth and allows our team to focus on our competitive advantages, the Noble Fijian Kava supply chain and brand building," he said.

"With the focus of the company now being the beverage and liquid formats market in the US, we will be able to leverage IMCD's ingredient sourcing, science, and formulation expertise to help accelerate these activities," Noble added. "Our plan is to co-develop a beverage-ready kava extract utilising our Noble Fijian Kava supply chain. We can then utilise the buying power of IMCD's network to produce bulk beverage premixes, which are the key inputs for mass scale bottling and canning in the US."

The possibilities for Kavaton are extensive and we look forward to executing a continued programme of research and development

"Given the results seen with the work on Kavaton, I am confident we have the right partner," said Ryan Gorman, Brand Director of Network Nutrition. "It's been an absolute pleasure working with Dr Noble and the team at Fiji Kava and in a short space of time we've been able to generate significant interest in Kavaton across several regions and market segments. It's an exciting time to be involved with this excellent ingredient and we've only scratched the surface in terms of the product's potential.

"The possibilities for Kavaton are extensive and we look forward to executing a continued programme of research and development to maximise Kavaton prospects," Gorman added. "In addition to preponing the schedule of planned further investment in Fiji Kava, I have given Dr Noble my commitment of further capital to be made available to the company upon realisation of growth milestones."

Summary of Key Terms in the expanded Strategic Partnership:

  • Australia, New Zealand, Canada and the ASEAN region added as exclusive regions for bulk extract sales.
  • The Sales Targets from the original agreement remain in place, with new target for each country to be mutually agreed based on regulatory timelines for entry to specific countries.
  • Marketing Services contributions by each party remain unchanged at US$100,000 per year for each party, with refocus of R&D activities on beverage formulation and bulk premix beverage supply and sourcing.
  • Ryan Gorman's investment in FijiKava Ltd will consist of 7,500,000 shares for priced at 3c which fully replaces Tranche 3 and Tranche 4 of the previously announced investment schedule.

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