Australian-Fijian medicinal kava health & wellness firm Fiji Kava has signed an exclusive contract with Pumate Shanghai as its authorised distributor to enter the Chinese market.
According to the terms of partnership, the agreement will seek to generate $8 million in revenues for the firm within the first three years, as Pumate trades the product range within China’s complementary medicines and pharmaceuticals industries as well as across the border via digital stores. The contract covers an initial three-year period with extension clauses for one-year terms.
“This agreement is one of the most material commercial deals in Fiji Kava’s history which creates a major new opportunity for the company to enter China’s vitamin and supplements market, the second largest in the world and estimated at RMB 149 billion ($30 billion),” said Fiji Kava chairman Dr Andrew Kelly.
“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.”
Pumate already distributes imported nutritional supplements into the Chinese market, some of which are sourced from Australian manufacturers.
“This agreement opens a door for Fiji Kava to the Chinese market in a major milestone that provides the company with the distribution capability to reach Chinese consumers,” said Fiji Kava non-executive director Nicholas Simms.
“The 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 e-commerce marketplaces and retail partners.
“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. 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.”
Fiji Kava has established agreements with Bioceuticals and Coles Supermarkets in Australia, Green Cross Pharmacy in New Zealand, and Amazon in the US.
Fiji Kava operates under the Fiji Kava brand name in Fiji, Australia, New Zealand, Hong Kong and the US, marketing and selling Fiji Kava’s range of capsules, instant powder mixes and flavoured shots.