The Calmer Co International reports 45% surge in e-commerce sales, plans continued expansion

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By Imelda Cotton - 
Calmer Co ASX CCO renounceable rights issue May sales

Health and wellness company The Calmer Co International (ASX: CCO) has reported a 45% spike in e-commerce sales for May, amounting to $496,000 or $16,000 in transactions per day.

Sales were achieved through Shopify Australia, Amazon USA, Shopify USA and Fiji-based online distributors Jacks of Fiji, Tappoos and Prouds.

Total sales for May are believed to mark 10 months of consecutive online sales growth for the company, while total revenue for the month surpassed the $470,000 recorded in April by 28% and is expected to exceed $610,000 for May.

Sales within Coles’ (ASX: COL) Australian stores have also continued to grow with orders topping 38,000 units across the product range in May, up from 23,000 units in April and 16,000 units in March.

Natural Solutions

The Calmer Co provides natural solutions to calm nerves, support mind and muscle relaxation and induce sleep.

The company’s product range includes drinking powders, teas, shots, concentrates and capsules sold under house brands Fiji Kava, Taki Mai, and Danodan Hempworks in markets including the US, Australia, China, New Zealand and Fiji.

Last year, The Calmer Co announced the launch of a new e-commerce store in the US to support its Fiji Kava beverage and natural medicine brand.

Broad-based demand

Chief Executive Officer Anthony Noble said e-commerce would be key to the company’s continued strong performance.

“Our global digital marketing strategy is now firing on all cylinders with full stock levels in our warehouses across the board,” he said.

“We continue to see strong sales through Coles and in our Fijian Tourist channel retailers, which offer an important way for customers to discover and try our products for the first time.”

Prioritising e-commerce

The company plans to continue prioritising e-commerce channels with the highest margins and scalability.

“We are increasingly confident that our e-commerce strategy with complementary retail exposure in Australia and the Fiji Islands will show continued success,” Mr Noble said.

“We believe Shopify USA will soon be the major engine for growth in the world’s largest kava market, where the regulatory framework supports launching new innovative products in the future.”

The Calmer Co has previously stated its vision of becoming the “world’s most dominant kava company.”

Capital Raising

Earlier this week, The Calmer Co launched a one-for-three renounceable rights issue at $0.004 per share to raise $2 million to fund capital works at its Fiji production plant.

For every two new shares subscribed, eligible shareholders will receive one free attaching new option with an exercise price of $0.006 and an expiration date in mid-2026.

The proceeds will be put towards increasing output and improving quality assurance at the company’s Navua-based plant to ensure production keeps pace with growing demand.

Funds will also be used to advance marketing activities in Australia and the US and expand stock levels to support sales growth in these regions.

“It is critical that we continue to invest in growing our production capacity and inventory levels and enhancing our sales and marketing to capitalise on the solid base that has now been built in our key markets,” Mr Noble said.