Derived from the roots of the Piper methysticum plant native to the Pacific Islands, Kava has gained popularity for its potential health benefits as evidenced by The Calmer Co (ASX: CCO), which reported $110,000 in sales through the month of November for it’s eCommerce channels.
These sales primarily came from The Calmer Co’s online Shopify store while also seeing some sales through Amazon.
The $110k sales represented a 70% increase on the monthly sales in October 2023, but included the Black Friday and Cyber Monday promotional periods where Amazon witnessed substantial online traffic. To feature more prominently during these Amazon promotional days, The Calmer Co offered promotional discounts.
CEO Anthony Noble expressed his satisfaction with the sales, stating, “Excellence in eCommerce is our first growth pillar, and the focus for the team is on the Australian Shopify platform this quarter. The marketing strategy has been extremely well-targeted, resulting in increasing sales order volume and basket value across the month.”
Noble also highlighted the success of their sales strategy in the USA via Amazon, and announced plans to replicate this success on the Shopify platform in the USA starting February 2024, adding to the international presence which recently entered New Zealand also.
“We were also very pleased to see the implementation of cross-border shipping into the New Zealand market from our Australian warehouse start in the last week. We have very positive initial indications that there is significant demand for kava in NZ,” added Noble.
Kava, derived from the roots of the Piper methysticum plant native to the South Pacific, has gained popularity for its potential health benefits. Known for its calming effects, kava has been traditionally used to reduce anxiety and stress. The surge in sales for The Calmer Co.’s kava products suggests a growing interest in natural remedies for stress relief among Australians.
For FY23, The Calmer Co reported $1.78 million revenue, but a net loss after tax of $5.2 million as the Company completed a $2.5 million capital raise from investors to fund ongoing operations.
As of 30 September 2023, The Calmer Co reported $390k of cash on hand, while its Taki Mai kava-shot will be launched nationally in more than 500 Coles supermarkets from January 2024.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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