NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF) announced it has received two purchase orders for its compostable coffee pods from existing clients in Canada.
With these orders, the company has profuced more than 1 million pods since November 2024.
One order, already delivered, is from Bridgehead and includes two stock keeping units (SKUs).
The second is a repeat order from a North American coffee company focused on office coffee services and retail distribution. It includes over 150,000 compostable pods across six SKUs.
“We are excited about the continued traction we are gaining with customers and reaching the milestone of producing over 1 million pods, even as we navigate the current situation with the US tariffs which have had an impact on our US customers in the short-term,” NEXE president Ash Guglani said.
The company said it will continue prioritizing the Canadian market due to tariff-related uncertainties, while advancing plans to establish a US operational presence.
NEXE is exploring a strategy to move parts of its coffee pod operations, such as dosing and sealing, to the US, while continuing to manufacture pod components at its Windsor, Ontario, facility.
The company expects this move to help reduce exposure to coffee price and tariff risks, improve gross margins, and support product innovation and expansion into new verticals.
Additionally, work is ongoing with customers to develop next-generation compostable pods for Nespresso OriginalLine systems.
“Currently, we are focusing most of our efforts on growing our Canadian-based business while we advance our plans for transferring some of our production lines to the US,” Guglani said. “Over time we expect this will help support our US customers with their strategies and contribute to the growth of our US-based revenues.”