WINDSOR, ON, Canada – NEXE Innovations Inc., a leader in innovative compostable materials solutions, provides shareholders with the following update of their progress over the last 24 months. “We are seeing that compostable packaging is in high demand across nearly every sector of the consumer-packaged goods industry (CPG), with 80% of the 25 largest CPG companies committing to fully recyclable or compostable packaging by 2030¹. We believe that as plastics begin to be phased out, NEXE is well-positioned to address this challenge.
We have undertaken rigorous commercial testing of our NEXE pod over the last 24 months with several customers as we pivoted to our new vertically integrated strategy to targeting business-to-business customers (B2B).
In recent months, we have engaged with multiple companies of varying sizes and are in the final stages of negotiating master manufacturing supply agreements that will cover a series of purchase orders. While the sales cycle can be lengthy, particularly for a startup entering a new market with a disruptive solution, we expect to finalize some of these negotiations shortly.
Our ~54,000 sq. ft. Windsor Facility is operational, with a targeted annual production capacity of up to 500 million Keurig* and Nespresso** compatible compostable coffee pods. Strategically located, the facility provides us access to major markets in the U.S. and Canada. To address supply chain and quality control challenges, we brought key processes in-house, from manufacturing our proprietary resin and major components to the finished product.
NEXE has also invested heavily in infrastructure, allowing us to scale rapidly into new products across different industries. One key strategic decision was establishing an in-house tool shop to work with R&D and collaborating with B2B customers on customized solutions to shorten the product development cycle. The additional benefit of an in-house tool shop also ensures minimal machine downtime.”
Keurig Dr. Pepper, the largest player in North America, recently announced plans to beta-test compostable pods later this year using a new machine that allows consumers to continue to brew plastic capsules as well as this new format², while Nespresso is piloting their own version in select European markets³, says the company. These developments highlight the growing importance of sustainable solutions like compostable materials.
“At NEXE, our extensive R&D has resulted in what we believe is a superior product. We recognized early on that scaling up and achieving cost competitiveness with plastic and aluminum pods was essential. Over the last two years, we transformed our business model to deliver a better product and ensure scalability, mitigate supply chain risks, and compete on price with plastic.”
“We’re proud of the progress we’ve made in the compostable coffee pod industry. While Keurig and Nespresso are just starting to explore sustainable alternatives, these developments highlight the growing importance of sustainable solutions like compostable materials,” said Ash Guglani, President and Co-founder of NEXE.
“By reshoring all operations and bringing every aspect of manufacturing in-house, we have gained a competitive advantage, allowing us to deliver a superior product at a competitive price. As the demand for eco-friendly coffee pods grows, we are confident NEXE will stand out with our innovative and cost-effective solutions—even against plastic.”
*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.
**NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Nespresso®. Nespresso® is a registered trademark of Société des Produits Nestlé S.A
¹ https://consumerbrandsassociation.org/sustainability/recycling-policy-platform/
² Something new is on the horizon: K-Rounds plastic-free pods, Keurig, March 13, 2024
³ https://www.nespresso.com/ch/en/compostable
