The NEXE fully compostable, single-use pod will offer the market an environmentally friendly alternative to the over 80 billion plastic and aluminum pod market
Vancouver, B.C.- June 29, 2023 – NEXE Innovations Inc. (“NEXE” or the “Company”) (TSX.V: NEXE) (Frankfurt: NX5) (OTC: NEXNF), a compostable and innovative materials company, is pleased to announce that the Biodegradable Products Institute (BPI) has completed its verification process and has confirmed that the NEXE fully compostable, single-use beverage pod and its associated components meet the stringent compostable requirements set out by the BPI Institute.
NEXE Fully Compostable Single-Use Beverage Pod
“We believe that the BPI Certification, combined with the study done with the University of British Columbia and an independent commercial compost study that was completed at the Surrey Biofuel Facility, the first closed-loop organic waste facility in North America, will provide the industry with confidence that NEXE’s compostable products are the ideal green solution to the plastic waste plaguing our environment”, stated Ash Guglani President of NEXE Innovations, “NEXE understands that it is one of the only companies that completed an industrial composting study prior to applying for the BPI Certification”.
The NEXE fully compostable, single-use beverage pod has several key competitive features protected by patents, including an innovative technology that allows for more volume per pod while delivering what the Company believes is an unrivaled “pour-over” coffee experience. With these distinct advantages, NEXE believes it sets itself apart from the competition and establishes itself as the go-to choice for premium coffee brands seeking a sustainable solution.
NEXE believes this innovative solution represents a significant milestone for the industry. Replacing single-use plastic and aluminum pods with fully compostable materials has been a daunting challenge, considering the stringent requirements of water resistance, pressure endurance, and heat resilience. NEXE believes by conquering this complexity, it has acquired invaluable insights that will empower the Company to swiftly develop and introduce new, groundbreaking products to the market.
“NEXE has gone through a significant transition. We have improved the performance of the single-use pod, which can go head-to-head with the plastic alternative, and have brought our manufacturing capabilities in-house,” stated Ash Guglani, President of NEXE Innovations, “NEXE’s goal is to provide a fully compostable, single-use pod option to customers without compromising on performance and price.”
The Single-Use Coffee Pod Market
NEXE’s primary focus is the co-manufacturing and private label market segments. The BPI certification is expected to provide NEXE’s customers with the ability to differentiate their products as environmentally friendly to their end customers. It is also expected to allow NEXE’s customers to comply with an increasingly restrictive regulatory environment and the ability to demonstrate their commitment to reducing waste.
In 2022, the single-use plastic and aluminum pods market was estimated to be 80+ billion. Compostable single-use pods were only ~4% of the total estimated market, an estimated increase of over 3X from 2020. This translates to ~3.5 billion compostable pods. NEXE believes that alongside the competitive features of the NEXE Pod, the in-house manufacturing capacity of ~500 million pods at its facility in Windsor, Ontario will provide NEXE with a strong market position in a fragmented space.
The BPI Institute
BPI (https://bpiworld.org/) is a leading North American authority on compostable products and packaging. The BPI Certification program is a third-party verification of ASTM standards for compostable products and is intended to protect consumers against false claims and greenwashing. To meet the requirements of the BPI Certification, the product must meet the requirements of the ASTM D6400 or ASTM D6868 standards for compostability. The key requirements are proper disintegration without leaving harmful toxins or substances, biodegrade in an industrial composting facility, and the resulting compost or soil amendment should be able to support healthy plant growth. The BPI certificate also requires products to be PFAS-free.
Benefits of Composting
Composting helps reduce greenhouse gases (GHG) and is one of the solutions that NEXE believes will help the world transition to a greener economy. Composting is expected to reduce landfill emissions by diverting organic materials that produce methane to a more natural process where the waste can be processed into a nutritional soil amendment. The soil amendment resulting from composting is also expected to help with drought and soil erosion and reduce the need for chemical fertilizers.
*NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Keurig®. Keurig® is a registered trademark of Keurig Dr Pepper Inc.
**NEXE Innovations Inc. is not affiliated with, endorsed, or sponsored by Nespresso®. Nespresso® is a registered trademark of Société des Produits Nestlé S.A.
About NEXE Innovations Inc.
NEXE Innovations Inc. is a leader in innovative compostable materials technology based in British Columbia, Canada. The first product developed by NEXE Innovations is one of the only patented, fully-compostable, single-serve coffee pods for use in existing major single-serve coffee machines.
For more information about NEXE Innovations’ compostable materials and how it is well-positioned to meet the growing demand for environmentally friendly and sustainable products, visit www.nexeinnovations.com and follow us on social media @nexeinnovations.
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