NEXE Innovations Inc (CVE:NEXE) provided its outlook for 2021, in which the company is aiming to commercialize its fully-compostable, plant-based capsules for use in Keurig Brewing Systems in the first half of the year.
NEXE also said it is targeting the launch of its coffee capsules for use in Nespresso "original line" brewing systems by the second half of 2021.
The company noted that its primary focus in 2021 is on the commercialization of its plant-based capsule businesses and pursuing collaborations with leading consumer packaged goods companies who share its ethos.
READ: NEXE Innovations is set to become a publicly-traded ‘green’ coffee pod company after its acquisition by Whatcom Capital
NEXE added that it is planning a major expansion of its production facility this year, both in terms of physical space and personnel, to satisfy the high level of demand the company expects for its products.
NEXE Innovations also highlighted what it called a “successful” 2020, in which it raised more than C$20 million in gross proceeds and began trading on the TSX Venture Exchange in late December.
In early 2020, the company placed orders for custom-built high-speed automation, which it expects will be commissioned by mid-2021, allowing it to scale its NEXE Keurig-compatible (K-Cup) pod production capacity from 20 million annually toward capacity of up to 120 million pods per year.
And, following the arrival of all its key equipment on site through 2021, the company anticipates being able to scale its Nespresso and K-Cup-compatible pod production to a combined 220 million pods/year capacity.
NEXE also said it has received substantial inbound interest from large consumer packaged goods companies, with discussions being ongoing, which have avoided the single-serve beverage market due to sustainability concerns and see NEXE’s technology as a sustainable entry point and solution.
Furthermore, the company noted that it has “substantially” strengthened its intellectual property (IP) portfolio in 2020, engaging a leading IP consulting firm who identified more than 20 possible patent applications that would further bolster NEXE's competitive advantage, raise barriers to entry, and generate potential licensing revenue.
Finally, NEXE added that it strengthened its board of directors in 2020 with the addition of three new independent members, including Haytham Hodaly (senior vice president, corporate development of Wheaton Precious Metals Corp), Killian Ruby (president and CEO of Malaspina Consultants Inc) and Graham Gilley (director of enterprise risk management and data protection at a private academic institution).
NEXE Innovations, based in British Columbia, has developed one of the only patented, fully compostable, plant-based, single-serve coffee pods for use in existing major single-serve coffee machines. Its proprietary NEXE Pod is designed to reduce the significant environmental impact caused by single-serve pods.
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