-Kava Price Statement-

Dear Customers:

As you have noticed the price of our kava has risen drastically lately. We cannot apologize for this. We can however offer you an explanation 
for it that we feel you deserve. The world is currently in an unprecedented kava shortage. Every kava producing nation is affected. Vanuatu 
was hit by category 5 cyclone Pam in Vanuatu in 2015, the Fiji islands were hit by category 5 cyclone Winston in 2016, and recently Tonga was 
hit by a category 5 cyclone Gita. The cyclones destroyed much of the mature kava supply. This was followed by a drought that killed off what 
the farmers tried to replant. I have personally gone to these regions and surveyed the crops myself and there is very little mature kava to be 
purchased or believe me we would be buying heavily. 

Kava is a 5-6 year crop to yield the high quality kava you are used to receiving from Nakamal At Home since 2003. Ultimately the laws of 
supply and demand have taken precedence here as they should. As well as a supply shortage, worldwide demand for kava has skyrocketed 
particularly in the United States where over 50 kava bars have opened in the last decade. Many of them in just the last few years. And they 
continue to open putting downward pressure on supply. Most kava bars in America sell a single serving of kava for around $5, give or take a 
little. They are all doing brisk business and running out of kava quickly which is fueling a panic in some areas where demand is high, 
particularly south Florida where we are located.  One kilogram of kava sells for over $500 across a kava bar when sold by the shell. Therefore 
the kava bars are now in control of the market price of kava as they are willing to pay the highest prices because of their high profit margins. 
We have kava bars buying up our kava for full retail price. Now we realize that several of our competitors are selling kava for much lower 
prices but we believe they will not be able to maintain those prices for long based on the demand we’re seeing. They are struggling to 
maintain supply as well. Low supply and high demand commands a high price with regards to the economic laws of supply and demand. 
Kava has become a scarce resource for the time being even in Fiji and Vanuatu which are the worlds largest consumers of kava. 

Nakamal At Home is hopeful that the farmers in Melanesia, Polynesia and Micronesia are planting kava at a rapid pace to meet the rising 
demand for the future and we believe the supply will increase, albeit slowly, but we have not seen the bottom yet. You have our word that we 
will lower our prices accordingly when we start to receive more kava or when this buying frenzy subsides. We truly appreciate our customers 
and wish we had better news but it is what it is for now. If you can find a cheaper product elsewhere of similar quality the law of substitution 
of economics says you should buy it. We understand.

Thank you kindly for your understanding and continued support as we all get through this together.

Respectfully, I Am,

Jeffrey A. Bowman, M.B.A

Proprietor @ Nakamal At Home

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