Reference no: EM132727663

Question - Great potential for kava business

As the beverage industry opens up amidst the COVID-19 restrictions limiting the public's access to these spaces, the shift for Fijian Kava is slowly starting to pick up in relation to health and wellness.

According to the US ambassador to Fiji, Joseph Cella, there was the challenge of this pandemic reflected on how the beverage industry was opening up.

"Not only that but I think another niche to this is the health and wellness industry has been growing exponentially, people are just looking in at their own health and working and figuring out ways to build their defences and certainly there is a niche for Fiji Kava's products.

"It's permitted under the US FDA and USDA for imports and it might open the doors for unknown treatments.

"We were just reflecting, could it be a vehicle perhaps for soldiers who are suffering from PTSD dopilot trail, with that and see if it has any value of what the experts decide that of course."

The Fiji Kava general manager sales, George Kotobalavu, said the company had in terms of product development gone a few steps ahead by looking at not only the local beverage industry but addressing global health issues.

"There are some of the products that we developed out of kava specifically, these kava products target specific aliments that we continue to face and right now with COVID-19 we are seeing more of sleepless nights, anxiety, insomnia and also promoting sleep and relaxation.

"With this sort of market in Europe, US and Asia, there is great potential for us to grow as a business. "For farmers, there is great potential for them as well their harvest and produce."

Investment Fiji senior trade and export adviser Shaneel Nair said there were about 17,000 farmers who were actually involved in farming kava.

He said there was a forecast for them to increase this number by 7 per cent which was the interest specifically for the US market.

QUESTION 1 - What role do investors play in the economy? Explain.

QUESTION 2 - Is investing in the grog business profitable? Elaborate.

QUESTION 3 - Should we invest as individuals or as a group? Why?