NEXE Innovations Inc (TSX-V:NEXE, OTC:NEXNF, FRA:FRA: NX5) said that adoption of its compostable coffee pod platform is gaining momentum, as a North American distribution partner ramps up orders, adds new brands and expands marketing efforts ahead of the key fall and winter sales season.
The Vancouver-based company, which develops compostable materials and coffee pods, said it and its commercial partner have advanced a transition to NEXE's BPI-certified compostable coffee pod platform that was first announced in March.
Since then, about 300,000 pods have been delivered, while two additional brands have placed initial purchase orders, NEXE said.
The company added that it sees growing opportunities across office coffee service (OCS), retail and e-commerce channels that could support broader commercial adoption of its technology.
According to NEXE, the distributor has shipped about 1.5 million pods to date.
The partner has placed additional purchase orders that NEXE expects to fulfill within the next several months. The distributor also anticipates accelerating larger-volume brand transitions ahead of the fall and winter season, the company said.
NEXE said its partner recently secured a nationwide partnership with a US veterans' nonprofit organization, which plans to transition to the company's compostable coffee pods for use across offices and events.
The distributor is also investing in e-commerce and marketing initiatives to support consumer adoption of compostable pods. As part of those efforts, it has launched a promotional campaign on Amazon and plans to offer a $5 discount during Amazon Prime Day from June 23 to June 26.
NEXE's compostable coffee pods are certified by the Biodegradable Products Institute (BPI), an independent organization that verifies compostability standards in North America.