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- Medicinal kava health and wellness company Fiji Kava’s (FIJ) shares are on the rise this morning after announcing it will enter the Chinese market
- The company has signed an exclusive distributor agreement with Shanghai-based PuMate
- PuMate has a proven track record in selling international food ingredients and nutritional products, such as those produced by Bubs Australia, in China
- The agreement is expected to bring in $8 million in revenue over an initial three years
- China’s vitamin and supplement market is the second-largest in the world and is valued at RMB 149 billion (approximately A$30 billion)
- Fiji is up 56.3 per cent on the market this morning and is trading for 25 cents per share
Medicinal kava health and wellness company Fiji Kava’s (FIJ) shares are on the rise this morning after announcing it will enter the Chinese market.
The company has signed a landmark agreement with PuMate Shanghai to be Fiji Kava’s exclusive distributor in China.
This partnership is one of Fiji’s most significant commercial milestones, with the deal expected to bring in at least $8 million in revenue over an initial three-year term.
Under the agreement, PuMate will sell Fiji’s noble kava extract, as well as its Sleep, Mind and Body product ranges. If PuMate achieves $10 million in revenue, Fiji will issue up to 1.5 million options to the company.
PuMate is a subsidiary of PMM, which has a track record in distributing international food ingredients, sports nutrition and infant nutritional product in China.
“We are delighted to partner with PuMate, an established and reputable company with proven experience in our sector and in successfully distributing products of other leading Australian brands to China, including Bubs Australia,” Fiji Kava Chairman Dr Andrew Kelly said.
China’s vitamin and supplements market is the second-largest in the world, valued at RMB 149 billion (approx A$30 billion).
Fiji Kava Non-Executive Director Nicholas Simms said this agreement opens the door for the company to enter the Chinese market.
“There is a growing Chinese investment in the Pacific, with the two regions sharing strong ties and Fiji a signatory to China’s Belt and Road initiative,” he said
“This unique partnership enables us to capture the growing demand for kava in China, as part of our offering as a vertically integrated primary producer and processor of Fijian noble kava,” he added.
PuMate Founder Chi Li is also pleased with the deal and is looking forward to working with Fiji.
“It is a great honour to work with the Fiji Kava company and I am very excited to bring such a wonderful natural product to the Chinese vitamin and supplement market,” he said.
Fiji is up 56.3 per cent on the market this morning and is trading for 25 cents per share at 10:39 am AEST.
