- Fiji Kava has signed a Memorandum of Understanding with leading New Zealand pharmacy group, Green Cross Health. This significantly strengthens Fiji Kava’s market presence in New Zealand by providing direct access to consumers through an established pharmacy network.
- Fiji Kava capsules and kava powder mixes to be available in up to 200 of Green Cross Health’s Life Pharmacies and Unichem Pharmacies across New Zealand from October 2019.
- Fiji Kava is the first foreign company to be granted approval by the Fijian Government to operate in the kava industry, giving the company a unique leadership position in a market with high barriers to entry. Fiji Kava was the first kava company to publicly list on the ASX (December 2018).
Fiji Kava Ltd (ASX: FIJ): An Australian-Fijian medicinal kava company, today announced the signing of a Memorandum of Understanding with Green Cross Health (NZX: GXH) to market and sell Fiji Kava products across its significant nation-wide pharmacy network in New Zealand.
Green Cross Health is a leading professional health care provider listed on the New Zealand Stock Exchange, with an extensive network of more than 350 pharmacies across its Unichem and Life Pharmacy brands.
Under the terms of the Memorandum of Understanding, Fiji Kava’s capsules and instant kava powder mixes will be available in up to 200 Green Cross Health pharmacies from October 2019. The initial launch of products will include kava capsules and kava powder mixes.
The Memorandum of Understanding provides Green Cross Health with exclusivity to sell Fiji Kava products to its New Zealand pharmacies for a 12-month period, with the option to increase distribution to its entire pharmacy network during the course of the arrangement.
Fiji Kava founder and Managing Director, Zane Yoshida said: “There is a major resurgence of global demand for kava as anxiety disorders and depression continues to grow in our society, and New Zealand and its strong Pacific Island population is central to the growth in kava demand.
“Kava is a product designed to target areas such as stress and anxiety relief, so pharmacies represent the perfect placement channel for Fiji Kava’s products. We are extremely excited to finalise this strategic agreement with New Zealand’s leading national pharmacy group, which significantly enhances our reach in New Zealand and continues our growth across global markets.”
Green Cross Health General Manager Operations and Merchandise, Jason Reeves said: “In New Zealand, as in other Western markets, stress and anxiety is a growing concern. Kava is becoming far more prevalent as a ‘plant-based’ natural alternative to addressing these issues, especially in New Zealand where there is a significant Pacific Island community. We're very excited to work with Fiji Kava in fulfilling this demand, to provide our customers and consumers with high-quality, natural and sustainable kava products.”
Demand for Fijian kava in New Zealand has increased in recent years, with New Zealand and the US combined to account for 75% of the value of all exported Fijian kava over the past five years. Globally, exported Fijian kava has experienced average annual growth of 32% during the same five-year period.
Following a period of initial infrastructure and supply chain establishment, Fiji Kava launched its global retail activities with an online presence in key markets of Australia, New Zealand, Fiji and the US. The Memorandum of Understanding with Green Cross Health supports a core strategic initiative of Fiji Kava’s overall global retail strategy, as the company continues to build its omni-store retail presence and the availability of its kava products range globally.