The Fiji Kava share price rose by as much as 26.9% earlier this morning before pulling back slightly to its current level of 15 cents, up 15.38%.

Expanded market presence

Investors appear excited about the company's latest prospect, sending Fiji Kava shares higher.

According to its release, Fiji Kava advised its suite of Noble Kava products will be stocked in Chemist Warehouse stores. The agreement seeks to boost Fiji Kava's market presence by offering more retail points of distribution and availability. Over 300 Chemist Warehouse stores across Australia and New Zealand will range the products throughout April and May.

The initial purchase order includes Noble Kava vegan extract capsules, as well as Noble Sleep, Noble Calm, and Noble Body.

Fiji Kava highlighted the pharmacy network as the single largest domestic channel for Australian consumers purchasing complementary and alternative medicines. A report published by Roy Morgan stated that 45% of people buy their vitamins, minerals and supplements through Chemist Warehouse.

Fiji Kava interim CEO, Nicholas Simms touched on the reputable relationship between consumers and pharmacies, saying:

Pharmacists are a key trusted source for people seeking remedies for sleep, mild anxiety other mind and body ailments. It's therefore not surprising that pharmacies represent the most prominent route to market opportunity domestically for Fiji Kava's natural Noble Kava products; with our research indicating that more than 40% of all sleep, mind and body health need purchases take place in this channel.

Simms went on to talk about the agreement, adding:

Securing ranging of Fiji Kava in Chemist Warehouse, the largest and most established pharmacy retailer in Australia, significantly expands our retail footprint in Australasia and enables us to reach more consumers of Kava and individuals seeking natural alternatives for issues such as sleep, anxiety and muscle relaxation.

About the Fiji Kava share price

The Fiji Kava share price has jumped more than 150% over the past 12 months, and is up 25% year-to-date. The company's shares reached an all-time high of 31.5 cents in late October 2020, before treading lower.

The post The Fiji Kava (ASX:FIJ) share price rocketed 26% this morning. Here's why appeared first on The Motley Fool Australia.

What was in the announcement?

According to Fiji Kava, it signed an agreement with PuMate (Shanghai) as its authorised distributor to supply the company's medicinal products to China. Fiji Kava stated that the landmark agreement includes a minimum sales requirement of $8 million over the initial 3-year term of the agreement.

The agreement is extendable for periods of 12 months each after the initial 3-year term. If PuMate reach a target of $10 million in annual gross revenue, Fiji Kava have agreed to issue the distributor 1.5 million options at a discount of 15% to the 30-day volume weighted average price, subject to shareholder approval.

Fiji Kava stated that the agreement includes diversified distribution channels into China with both branded Fiji Kava products and raw Noble Kava extracts to be sold in China's complementary medicine, personal care and pharmaceutical industries as well as through e-commerce marketplaces.

Fiji Kava non-executive director Nicholas Simms stated:  "This agreement has been structured in a way that diversifies our revenue streams in China via co-development possibilities with manufacturers of vitamins and supplements in China, and sales of Fiji Kava's existing product ranges through cross-border eCommerce marketplaces and retail partners."

According to the announcement, China's vitamin and supplement market is worth $30 billion per year.

About the Fiji Kava share price

Fiji Kava is an Australian-Fijian company that produces 'noble kava' products for the complementary and alternative medicine market. Its products are TGA and FDA compliant. Fiji Kava has been listed on the ASX since 2018.

Earlier this month, Fiji Kava announced that it had signed a major agreement with a subsidiary of Blackmores Limited (ASX: BKL), BioCeuticals. Under the agreement, BioCeuticals will have a licence to add Noble Kava produced by Fiji Kava to its AnxioCalm product.

The Fiji Kava share price is up 865% since its 52-week low of 2.9 cents and up 358% since this time last year.

The post Fiji Kava share price explodes 71% after company lands partnership to supply to China appeared first on The Motley Fool Australia.

Fiji Kava produces natural 'noble kava' products for the complementary and alternative medicine market which is estimated to exceed US$210 billion by 2026 globally. It is focused on providing an alternative to prescription medications to promote sleep, soothe and calm the nerves, support muscle relaxation and relax the mind. The products are Theapeutic Goods Administration (TGA) and Food and Drug Administration (FDA) compliant. 

Major agreement highlights

Fiji Kava has announced a non-exclusive licence agreement with BioCeuticals to develop a co-branded product for release in Australia and New Zealand. It will see BioCeuticals use the noble kava extract for its AnxioCalm product. AnxioCalm is a herbal medicine to support symptomatic relief of mild anxiety, tension and stress. 

In addition, AnxioCalm products will be co-branded with Fiji Kava's 'Authentic Fiji Kava' trademark on each product sold. It will be made available through BioCeuticals' extensive network of qualified healthcare practitioners across Australia and New Zealand. 

The agreement follows progress being made on Fiji Kava's commercial strategy to grow the availability of its Fijian noble kava. It now has cornerstone retail agreements with Coles Group Ltd (ASX: COL) supermarkets in Australia, Green Cross Pharmacy in New Zealand and has also expanded its eCommerce presence on Amazon.com in the United States. Additionally, it is exploring opportunities to access Chinese marketplaces. 

Fiji Kava will supply BioCeuticals with noble kava via its agreement with Pathway International. 

CEO comments

Understandably, Fiji Kava founder and CEO, Zane Yoshida, was pleased and said:

"This is another milestone for the company that will not only increase the availability of our noble kava in Australia and New Zealand, but is another strong endorsement by a leading healthcare provider of the quality and uniqueness of our Fijian noble kava…

Fiji Kava will continue to scale-up its production in Fiji to produce required inventory to meet the growing demand from the BioCeuticals licence agreement and other recent business development advancements such as ranging in Coles Supermarkets nationally".

About the Fiji Kava share price

Before the pause in trade, the Fiji Kava share price was trading at 12.5 cents, representing a 43.68% increase in today's trade. It has a market capitalisation of around $12 million.

The post Fiji Kava share price soars 90% on Blackmores subsidiary agreement, trade paused appeared first on The Motley Fool Australia.