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NEXE leads the charge with its fully compostable coffee pods for use in Keurig and Nespresso machines

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  • Opened its XOMA Superfoods online store on February 5
  • Launched its first XOMA Superfoods product, a micro-ground coffee fortified with MCT oil in its NEXE Pod
  • Targeting the US$30 billion single-serve pod market

What NEXE Innovations does:

NEXE Innovations Inc (CVE:NEXE) (OTCMKTS:NEXNF) (FRA:NX5) is a leader in plant-based compostable technology and advanced materials innovation.

The Vancouver-based firm designs and manufactures fully compostable, plant-based materials for everyday consumer products. The company has developed one of the only patented, fully compostable, plant-based, single-serve coffee pods for use in single-serve coffee machines.

The NEXE pod is designed to reduce the significant environmental impact caused by single-serve pods. According to the company, more than 50 billion plastic pods are dumped into landfills each year. The Canadian company is targeting the US$30 billion single-serve pod market, which is growing at 8.5% year-over-year, with its NEXE pod, one of the only fully compostable (in as little as 35 days) plant-based solutions.

Backed by five years of scientific research, with $17 million invested and more than $14 million in recent financing, NEXE is well positioned at the forefront of advanced material manufacturing and automation.

How is it doing:

It has been a busy spell for NEXE  which recently revealed that the construction of its proof-of-concept Nespresso Coffee Automation Line is now complete. The company and its manufacturing partners began factory testing the production machine – expecting to take delivery of the machine on time and on budget in the first quarter of 2021. 

NEXE  says this customized Nespresso Coffee Line is the last piece required to launch its fully compostable Nespresso-compatible pod in early 3Q 2021. The automation demonstrates that its proprietary materials can be assembled at production speed — proving scalability. Moving forward, this will form the basis for NEXE to order an additional scaled machine to increase production capacity to 50 million NEXE Nespresso-Compatible pods by the end of 2021.

NEXE recently announced two milestone developments for its fully compostable Nespresso-compatible project, including a C$1 million ISC grant supporting the commercialization of its NEXE Nespresso-Compatible Pods and successful composting results.

Significantly, NEXE revealed that the XOMA Superfoods online store, which the company opened to the public on February 5, has completely sold out of the initial inventory of its pods under a pilot launch. The firm’s initial Micro-Ground Soluble Coffee with medium-chain triglycerides (MCT) oil offering, is the first commercial product released by NEXE.

XOMA Superfoods success has validated NEXE’s thesis of combining coffee with superfoods, namely, MCT oil in this case, encapsulated in its fully compostable pod. NEXE president Ash Guglani said the firm is now faced with the “great problem of not only delivering more coffee and MCT-filled pods to the market but also expanding” its superfoods portfolio. NEXE plans to release additional coffee and MCT-filled pods, as well as provide more superfoods SKUS to its line-up.

XOMA – derived from the Greek word for soil – allows NEXE to meet its sustainability mandate, while providing its customers with high-quality coffees and superfoods. XOMA Superfoods will eventually include a wide range of healthy lifestyle products, which may include coffees, superfood creamers, coconut oil, MCT oil, mushrooms, and moringa, according to the company.

In January, NEXE said that over the last eight months, the Canadian company has filed 10 provisional patent applications with the US Patent and Trademark Office. The applications cover systems, methods, and materials for improving the quality, consistency, and compostability of plant-based packaging. Moreover, the applications cover improvements in the design and function of single-serve coffee pods used in major single-serve coffee machines. 

NEXE has expanded its R&D and manufacturing facility in Surrey, British Columbia. It is doubling its footprint from 10,000 square foot to around 20,000 square foot. The expansion will include increased space for labs, the factory floor, and offices. The new space consists of more than an 8,000-square-foot production floor and roughly 2,000-square-foot of office space to be used as an innovation center for current and new product development. The expansion will house key equipment for manufacturing compostable pods in both K-Cup and Nespresso formats. NEXE will also use the space for XOMA Superfoods order fulfillment.

Inflection points:

  • Commercializing its compostable capsules for Keurig Brewing Systems in the first half of 2021
  • Launching its fully compostable Nespresso-compatible coffee capsules in early 3Q 2021
  • Growing its XOMA Superfoods online store and in-house XOMA Superfoods brand and portfolio

What the boss says:

NEXE Innovations CEO Darren Footz recently touched on the company’s rapid plant expansion and said: “Our company is poised for immediate growth in production capacity, research activity, and personnel.” 

He added: “This expansion will accelerate our product development pipeline and allow us to rapidly increase our capacity for high-speed manufacturing. By adding the space adjacent to our current facility, we will be able to efficiently integrate the various aspects of our business and continue our progress across the board.”

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors


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