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In December last year Fiji Kava (ASX:FIJ) became the first publicly listed kava supplier in the world. Today the Australian-based medical kava company follows that milestone with another – the signing of a major distribution deal.

The exclusive agreement, struck with Australian and New Zealand ingredient supplier Pathway International, ensures the distribution of a significant quantity of Fiji Kava’s high-quality noble kava extract over three years.

The deal is the young company’s first major distribution contract, which based on current kava pricing will generate revenues in excess of$3.5 million.

Speaking on the milestone moment, Fiji Kava CEO Zane Yoshida described the significance of the deal for the company.

“The signing of this agreement is a major achievement for us and puts us in a great position to grow Fiji Kava into a strong and lucrative company, delivering on our core strategy.

“The large and increasing minimum order amounts under the agreement over the three-year term reflects the growing acceptance and demand for kava as a natural alternative to prescription medications in the treatment of anxiety and other disorders.”

Established in 1995, Pathway International is a privately owned Australian company specialising in the supply and distribution of ingredients for complementary medicine, personal care, functional food and beverage industries in Australia and New Zealand.

Its customers include some of Australia’s best known pharmaceutical and supplement producers, including Blackmores, Sanofi, Swisse and Vitaco.

Wayne Coote, CEO of Pathway International, also weighed in on the deal.   

“We are pleased to be able to provide our clients with direct access to high quality kava extracts under our recently signed distribution agreement with Fiji Kava.

“Already, we have had strong indications of demand from many of our existing customers who are interested in this product and the therapeutic benefits it can offer to a broad consumer base.”

“Kava is definitely becoming widely recognised within the pharmaceutical and complementary medicine industries as a natural alternative to a wide range of medications to treat stress, anxiety and sleep disorders and we’re excited that this deal allows us to provide the highest quality kava extracts from Fiji Kava to our customers.”

Fiji Kava’s deal with Pathway International is indicative of growing public interest in natural alternatives to prescription benzodiazepines in the treatment of anxiety.

In anticipation of this deal and growing interests in their products, Fiji Kava made moves in early February to increase its existing kava supplies and expand production.

This content is produced by Star Investing in commercial partnership with Fiji Kava. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.