NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) announced this week that it is expanding into the US, the largest single-serve coffee pod market globally, through its partnership with EKOCUPS.
The company's president Ash Guglani joined Proactive to discuss the milestone.
Proactive: You talked a couple of days ago about a contract you signed in Ontario, and now you're going across the border, signing the first contract in the US. A key milestone for the company, right?
Ash Guglani: Yes, absolutely. We've been working hard on these relationships. These take time to finalize, but we're strategic about who we work with. This week, we announced two partners with different distribution channels. In Ontario, they are a group with 17 coffee shops and some Canadian retail presence. And now, we’ve partnered with a high-volume online seller in the US.
That’s exciting. Can you tell us more about these partnerships?
Sure. The Ontario company was already using compostable pods, and they've now switched to our pods. In the US, we’re working with a group that uses a 13-gram capsule. Ours is the only compostable option that can handle their volume. We’re optimistic about broader adoption of our capsules through these partnerships.
EKOCUPS is the name of your US. partner. They’re prominent on Amazon and have a strong online presence. What makes them a good fit?
This is an ideal online partner. They've invested heavily in algorithms and built a private-label brand that performs well online. Their focus is entirely online, not retail, which complements our strategy. There’s room to grow with both of the partners we've announced.
I noticed EKOCUPS offers a range of coffee flavors. You’re starting with five. Can you expand based on the data?
Absolutely. We’re already developing additional SKUs. This is just the beginning, and I expect a lot more with this group.
Are there other US companies like EKOCUPS you’re targeting?
Definitely. The US is a massive market, with 80% of all single-serve coffee consumed there. This partnership is just the start, and we plan to target more companies like EKOCUPS in the near future.
Quotes have been lightly edited for clarity and style