VISTA, Calif., U.S. — NuZee, Inc. (“NuZee” or “the Company”), a specialty coffee company and a leading U.S. single serve pour over coffee producer and co-packer, has provided an overview of the Company’s business activities, performance for its third quarter and nine months ended June 30, 2019, and outlook.
“Fiscal 2019 has been a transformative period for NuZee,” said Masa Higashida, NuZee’s Chief Executive Officer. “We have strengthened our leadership team and financial profile, signed our first co-packing agreement with a global food manufacturer, introduced new products, and broadened our geographic footprint. Our facility in Vista, California, which is currently the only certified Drip Cup manufacturing and co-packing facility operating in the United States, received Level 2 SQF Certification in 2018 and was re-certified in July 2019. This facility is also certified Fair Trade, Organic, Halal, and Kosher.”
Thus far in fiscal 2019, Mr. Higashida noted that NuZee has:
- completed separate private placement equity financings that totaled $5.5 million, the proceeds of which are intended to be used to help fund the Company’s growth initiatives;
signed a co-packing agreement with Gevalia® Kaffe, a Kraft Heinz brand, under which NuZee will prepare and package coffee supplied by Kraft Heinz into a custom, single serve pour-over pouch for sale under the Gevalia® Kaffe brand; - commenced offering a fully recyclable packaging option to its single serve, pour over coffee co-packing customers following the signing of an exclusive agreement with global packaging specialist Huhtamaki Oyj;
- expanded production and warehouse capabilities in Vista, California that NuZee expects will allow for an approximate 50% growth in production capacity;
- leased a 16,603 square-foot facility in Plano, Texas which will serve as our new single serve pour over co-packing hub. The Plano facility provides favorable logistics given its central US location, lower cost structure, and ultimately greater economies of scale as production ramps up;
- grew overall Q3 2019 revenues by approximately 60% to $585,202 from $365,965 in Q2 2019, and specifically more than tripled US revenues to $420,083 from $138,851 in the immediately preceding quarter driven primarily by large co-packing orders in the US; and
- strengthened its executive team, most notably with the appointment of Shanoop Kothari as Senior Vice President and Chief Financial Officer in February 2019.
“The Drip Cup is one of the most popular methods of enjoying coffee in Japan, where we estimate that more than 2.0 billion cups are consumed each year,” Mr. Higashida concluded. “We remain focused on elevating the profile of pour over coffee in the United States and are continuing to position our business towards co-packing and private labeling for regional and global brands.”
Learn more about NuZee’s co-packing capabilities at https://pourovercopacking.com/.
Investors are encouraged to review NuZee’s Form 10-Q for additional information concerning the Company’s results of operations, a copy of which is available free of charge at www.sec.gov.
