## NEXE Innovations Reports Significant Progress in Compostable Packaging Solutions, Targeting Booming Market Demand
WINDSOR, ON, October 18, 2024
– NEXE Innovations Inc. (NEXE, NX, NEXNF), a leading innovator in compostable materials solutions, has provided shareholders with an update on its remarkable progress over the past two years. The company is witnessing a surge in demand for compostable packaging across virtually every segment of the consumer-packaged goods industry (CPG), fueled by a growing commitment to sustainability. Notably, 80% of the top 25 CPG companies have pledged to transition to fully recyclable or compostable packaging by 2030. This trend, coupled with the phasing out of plastics, positions NEXE as a key player in addressing the industry’s sustainability challenges.NEXE’s Strategic Approach: From Innovation to Scalability
Over the past 24 months, NEXE has diligently undertaken rigorous commercial testing of its NEXE pod with several customers. This intensive testing has been instrumental in refining the company’s vertically integrated strategy, shifting its focus towards business-to-business (B2B) partnerships. The company is currently in the final stages of negotiating master manufacturing supply agreements with multiple businesses, spanning various sizes. While the sales cycle can be lengthy for a startup entering a new market with a disruptive solution, NEXE anticipates finalizing these agreements shortly.
A Robust Infrastructure for Sustainable Growth
NEXE’s operational ~54,000 sq. ft. Windsor Facility is strategically located, providing access to major markets in the U.S. and Canada. The facility has a targeted annual production capacity of up to 500 million Keurig* and Nespresso** compatible compostable coffee pods. To navigate supply chain complexities and maintain unwavering quality control, NEXE has brought key processes in-house. This includes manufacturing its proprietary resin and major components, ensuring complete control over the entire production process, from raw materials to the final product.
Furthermore, NEXE has invested heavily in infrastructure, enabling rapid scaling across diverse industries. A key strategic decision was the establishment of an in-house tool shop, fostering collaboration with R&D and B2B customers to develop customized solutions and accelerate the product development cycle. The in-house tool shop also minimizes machine downtime, enhancing operational efficiency.
NEXE’s Superior Product: A Sustainable Solution for the Future
Keurig Dr. Pepper, the largest player in the North American coffee market, recently announced plans to beta-test compostable pods later this year. These pods will be compatible with a new machine that allows consumers to brew both plastic capsules and this new, sustainable format. Nespresso, another prominent coffee giant, is piloting its own compostable pod version in select European markets. These developments underscore the growing demand for sustainable solutions like compostable materials.
NEXE’s extensive research and development has resulted in a product that the company believes is superior in the market. Recognizing the importance of scalability and cost competitiveness, NEXE transformed its business model over the past two years. This strategic shift has ensured the delivery of a better product, mitigated supply chain risks, and enabled the company to compete on price with plastic alternatives.
“We are incredibly proud of the progress we have made in the compostable coffee pod industry,” stated Ash Guglani, President and Co-founder of NEXE. “While Keurig and Nespresso are just starting to explore sustainable alternatives, these developments highlight the growing importance of compostable materials. By reshoring all operations and bringing every aspect of manufacturing in-house, we have gained a competitive advantage, enabling us to deliver a superior product at a competitive price. As the demand for eco-friendly coffee pods grows, we are confident that NEXE will stand out with our innovative and cost-effective solutions—even against plastic.”
Market and Investor Awareness Initiatives
NEXE has taken several strategic steps to enhance market and investor awareness, solidifying its position as a leading player in the sustainable packaging market. These initiatives include:
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Independent Trading Group (ITG):
NEXE has engaged ITG to provide market-making services, aiming to enhance liquidity and market visibility for its shares.*
Clarkham Capital:
The company has partnered with Clarkham Capital to facilitate investor relations and consulting services, with a particular focus on the German stock market and German-speaking investor community.*
Torque Capital:
NEXE has retained Torque Capital for consulting services to strengthen its corporate development objectives and investor relations initiatives, expanding investor awareness and interest in the company.*
Proactive Investors:
NEXE has engaged Proactive Investors to provide investor relations and media services, promoting the company’s story to a wider audience.NEXE’s Vision for a Sustainable Future
NEXE Innovations is committed to providing innovative compostable material solutions and packaging to the B2B segment, empowering businesses to achieve their sustainability goals. The company’s proprietary and patented compostable material is durable and can withstand heat, pressure, and water. The NEXE Pod, a BPI-certified compostable coffee pod, exemplifies the material’s durability and serves as an excellent substitute for plastic. Compatible with major coffee brewing machines, the NEXE Pod is manufactured at NEXE’s vertically integrated facility in North America.
NEXE’s dedication to sustainability and its focus on delivering high-quality, cost-effective solutions positions the company as a frontrunner in the rapidly expanding compostable packaging market. As businesses and consumers prioritize sustainable choices, NEXE is poised to lead the way towards a greener future.
*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.