Global functional beverage and natural medicine company Fiji Kava Limited (ASX:FIJ) has entered into an exclusive distribution agreement with RooLife Group for eCommerce distribution in Australia and China.
Under the terms of the agreement, RooLife has been granted performance rights to achieve retail sales of up to A$15m, with a minimum of A$9m in China over a period of five years.
Highlights
- RooLife has been appointed as the exclusive distributor of the Fiji Kava range of capsules and drinking kava products in China.
- The distribution deal includes the rights to market Fiji Kava’s dietary shots and new ready to drink ‘RTD’ products that are licenced by Fiji Kava for the China market.
- RooLife’s will also assume management of Fiji Kava’s Australian based online sales via www.fijikava.com
- Performance rights granted to RooLife vest on the achievement of ratcheted sales targets of up to AUD500k by 30 June 2025, A$1-2m by 30 June 2026, up to A$5-10m by 30 June 2027 and up to A$15m by 30 June 2028.
- RooLife has a wealth of experience in sales and marketing of functional beverages in the Chinese market. This includes their recent successful launch of the Australian brand, Remedy Kombucha, in the retail trade sector, following the growth of their online sales since 2020.
- RooLife will co-market the Fiji Kava powdered drinking kava range alongside their VORA protein range in the lucrative online sports nutrition channel in Australia and China. Sports nutrition in China is valued at over USD300m1 and dominated by eCommerce for more than 80% of sales
- FijiKava Limited has terminated its distribution contract with PuMate Shanghai.
Alongside the USA, the Chinese market is the biggest international opportunity for FijiKava’s products,” CEO, Anthony Noble, said.
“This agreement represents work that has been ongoing for more than a year between RooLife and FijiKava, and I am excited to see this come to life in the months ahead.
“The partnership also enables us to leverage the expertise of RooLife’s Australian eCommerce capabilities to drive domestic online sales through fijikava.com. With this approach, we can find product positioning and marketing synergies in both Australia and China to ensure a successful cross-border eCommerce venture. For example, in comarketing our drinking kava with the VORA protein range to support post workout muscle relaxation.
“RooLife has a proven track record in China with Remedy Kombucha, so we are confident that they can grow an Australian brand through Chinese eCommerce channels and then transition to bricks and mortar retail in the world’s largest consumer market.”
