NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF), a Canadian maker of compostable packaging, is adding new flavours to its coffee pod lineup as it pushes deeper into the US and Canadian markets.
The company said Wednesday it has launched a pumpkin-flavoured pod through a partnership with a North American distributor that specialises in office coffee services and retail sales. Six pallets of the seasonal product have already been shipped to customers.
Three more varieties, decaf, vanilla and banana, are in the works and expected to roll out soon. Together, these make up four new “stock-keeping units,” or SKUs, which is how retailers track and manage inventory.
NEXE and its distribution partner plan to launch at least ten additional SKUs over the coming months, broadening the portfolio beyond the initial flavours. At the same time, the company is in “advanced discussions” with other potential distributors to extend its reach.
“Interest in the NEXE Pod, a fully compostable, BPI-certified solution, continues to build,” said Ash Guglani, president of NEXE Innovations.
“We continue to work with existing partners and are preparing to expand our product portfolio, which we believe reflects the scalability of our platform and the ongoing interest in sustainable solutions.”
NEXE’s USP is that its pods are environmentally friendlier alternatives to plastic. The company has developed a patented material that can withstand heat, pressure and water while breaking down in composting systems. Its pods are compatible with the single-serve brewing machines commonly found in households and offices.
Coffee pods remain one of the fastest-growing segments in the beverage industry, thanks to their convenience.
But they have also been criticised for contributing to plastic waste, with billions of single-use pods ending up in landfills each year. NEXE, listed on the TSX Venture Exchange under the symbol NEXE, is trying to position itself as a solution for both consumers and businesses looking to cut down on packaging waste.
The company manufactures its products at a vertically integrated facility in North America, giving it control over design, production and distribution. NEXE said it sees its coffee line as a showcase for its compostable technology, which it hopes to apply more broadly in packaging.
The expansion comes as consumer brands and retailers are under growing pressure to reduce the environmental impact of their products, particularly single-use plastics.