The Calmer Co: Analyst Sees Up to 350% Upside as Kava Platform Builds Momentum
IPW Advisory has published a new research note on The Calmer Co. (ASX:CCO)—and the headline numbers are hard to ignore.
Dear Reader,
IPW Advisory has published a new research note on The Calmer Co. (ASX:CCO)—and the headline numbers are hard to ignore.
The research house gives the functional wellness company a 12-month base-case valuation of A$0.0028 per share and a bull case of A$0.0045 per share.
Against a last traded price of A$0.0010, that implies potential 12-month upside of 180% and 350% respectively.
A big call, for sure. But IPW argues there’s far more going on here than the current share price suggests.
The Calmer Co. is building a business around kava, a traditional Pacific plant increasingly being positioned for modern wellness, stress support and alcohol-alternative markets.
And with consumers drinking less, caring more about sleep and stress, and looking for natural products that actually do something, IPW believes the company could be sitting in a very interesting spot.
You can read the research note in full by clicking here.
But first, for those new to the company, let’s look at the story in more detail…
What Does The Calmer Co Do?
The Calmer Co. is a consumer wellness business built around natural products designed to support relaxation and sleep.
Its brands include Fiji Kava, Taki Mai and Danodan Hempworks, while its products include drinking powders, kava shots, concentrates, capsules, bulk ingredients and the Fiji Kava FZZR range.
The key ingredient, as you’ve probably guessed, is kava.
Kava is a traditional Pacific plant used for centuries as a social and ceremonial drink. It’s commonly associated with calming and relaxation effects, offering a natural, non-alcoholic alternative to alcohol.
That positioning is becoming increasingly relevant as consumers reduce alcohol consumption, pay more attention to wellness, and look for products that fit social occasions without the same health concerns attached to alcohol.
The Calmer Co. is trying to build the brands, supply chain and ingredient platform to serve that shift—and turn kava’s move into the mainstream into a scalable revenue opportunity.
What Does the Research Note Say?
IPW Advisory has initiated coverage with a Speculative Buyrecommendation.
That word “speculative” should be noted. The Calmer Co. remains a micro-cap company, and IPW is clear investors need to weigh the funding, dilution, regulatory and execution risks.
Funding is part of that picture. IPW notes the company has launched a 1-for-1 entitlement offer to raise up to A$3.5m, with proceeds intended to support growth and repay convertible notes.
But IPW also sees a business with far more substance than the current market value suggests.
The Calmer Co. generated approximately A$8.11m of unaudited revenue in FY26. It already has products in Coles and Woolworths, while Fiji Kava holds leading positions in Coles’ national stress category.
The company also has US exposure, which IPW sees as a major growth market for kava. Its products are already sold through Amazon USA, and it’s now working to build a physical retail presence through the natural products channel.
The wider market backdrop helps explain why IPW is paying attention.
According to The Calmer Co.’s latest investor presentation,the global kava root extract market was worth around A$2.8bn in 2025 and is estimated to grow to around A$11.1bn by 2034.
In the US, 10.7% of adults reported consuming kava in the past 12 months, with more than 600 kava bars now operating across Florida, California, Texas and other states.
For IPW, the key point is positioning.
The research house sees The Calmer Co. as one of the few listed ways to gain exposure to kava’s potential move into the mainstream, supported by existing revenue, mainstream Australian retail, Amazon USA exposure, Pacific supply, processing capability, quality systems and traceability.
The numbers in the note are ambitious too.
IPW forecasts revenue rising from A$8.11m in FY26 to A$13.0m in FY27, A$21.0m in FY28 and A$31.0m in FY29. It also forecasts EBITDA moving positive in FY28.
That forecast growth is central to IPW’s valuation case.
IPW doesn’t just see The Calmer Co. as a small wellness brand. It sees a vertically integrated kava platform with existing revenue, retail distribution, US exposure and a busy FY27 catalyst runway.
The Wholesale Opportunity Gets a Boost
Another key part of IPW’s thesis is wholesale.
The Calmer Co. doesn’t only have to sell finished products under its own brands. It can also supply kava ingredients to other beverage, supplement and wellness companies looking to add kava to their own products.
That could become an important route to scale, allowing the company to monetise its supply chain through commercial partners without carrying the same advertising and marketing burden as a consumer brand.
That argument was strengthened considerably this week, with The Calmer Co. announcing an exclusive global distribution agreement for its kava extract ingredients.
The agreement covers Australia, New Zealand, the United States, Canada and ASEAN markets.
To keep exclusivity, the distributor must meet minimum purchase commitments of approximately A$25m over the initial three-year term, including approximately A$5.5m in year one.
For a company of The Calmer Co.’s size, that’s a meaningful move. It also connects neatly with comments made by CEO Zane Yoshida in his recent StockBox interview.
Zane said wholesale is particularly important because it carries the highest net contribution margin compared with branded products, while giving the company access to nutraceutical and beverage customers in fast-growing markets, particularly the US.
The risks remain real.
But if IPW is right, The Calmer Co. could be an early-stage listed exposure to a wellness category still moving into the mainstream.
The next milestones are straightforward:
Completion of the entitlement offer,
Progress on the A$25m distribution agreement,
Growth in wholesale ingredients,
US retail expansion
Continued movement towards cash-flow breakeven.
If those pieces fall into place, IPW’s view is that the current market valuation could prove far too low.
For more:
Best wishes,
The StockBox Team
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