The Calmer Co International (ASX: CCO) subsidiary South Pacific Elixirs has been awarded a $354,000 grant under the government of Fiji’s Commercial Agriculture Development Program (CADP).
The grant will advance the expansion of South Pacific Elixir’s ready-to-drink (RTD) bottling capability and targeted infrastructure upgrades at its Navua facility to support domestic and export RTD production.
Funds will be used for the acquisition of a dedicated truck to improve direct procurement of kava from Fijian farmers, regional aggregation, and cold-chain integrity
Root-cutting machinery will also be installed of to improve raw material consistency and operational efficiency, along with three-phase power at the Navua facility to support increased processing throughput.
Pacific Island Supply Chain
The CADP grant will strengthen The Calmer Co’s vertically-integrated Pacific Island supply chain across Fiji, Solomon Islands, and Papua New Guinea by increasing its value-added production capacity.
It will also help improve farm-to-factory logistics, enhance operational efficiency, and supporting scalable export capability.
Operational benefits are expected to be progressively realised as equipment is commissioned and capacity increases.
The company continues to focus on capital-efficient expansion of higher-margin finished goods and business-to-business (B2B) formats.
Non-Dilutive Funding
“We thank the Government of Fiji and the Ministry of Agriculture for their support of South Pacific Elixirs and the broader kava sector,” chief executive officer Zane Yoshida said.
“This non-repayable grant enables us to accelerate infrastructure upgrades, expand our RTD capability, and strengthen domestic supply chain systems without equity dilution.”
Analysts valued the global kava extract market at an estimated US$1.6 billion in 2024, forecasting it to grow at a compound annual rate of 14.1% to US$5.6b by 2033.
The US market is experiencing rapid growth driven by increasing consumer demand for functional relaxation products, natural sleep support solutions, and alternatives to alcohol.
Mr Yoshida said The Calmer Co was well-positioned to capitalise on the structural consumer shift.
