NEXE Innovations has reportedly made substantial progress in the compostable coffee pod industry, aligning with the growing demand for eco-friendly packaging solutions in the sector.
The company made the announcement as it updated its shareholders on its progress over the last 24 months.
According to NEXE, 80% of the 25 largest consumer packaged goods companies have committed to fully recyclable or compostable packaging by 2030.
Over the last two years, the company has conducted extensive commercial testing of its NEXE pod while shifting towards a vertically integrated strategy that targets business-to-business (B2B) customers.
This approach has led to engagements with various companies and impending master manufacturing supply agreements.
The company said that its 54,000ft² Windsor Facility is now operational and has a production capacity of up to 500 million Keurig and Nespresso-compatible compostable coffee pods annually.
NEXE has established in-house manufacturing processes to ensure quality control and address supply chain challenges.
The company also made investments in infrastructure to expand rapidly into new products and industries.
Among others, investments included a tool shop, which is crucial in partnering with B2B customers, reducing product development time, and minimising machine downtime.
Recently, Keurig Dr Pepper revealed plans to beta test compostable pods later this year with the help of a new machine.
Customers can continue to brew plastic capsules and the new format with the new machine.
Nespresso is also testing its own version in select markets in Europe.
NEXE president and co-founder Ash Guglani said: "While Keurig and Nespresso are just starting to explore sustainable alternatives, these developments highlight the growing importance of sustainable solutions like compostable materials.
"By reshoring all operations and bringing every aspect of manufacturing in-house, we have gained a competitive advantage, allowing us to deliver a superior product at a competitive price."
In August this year, NEXE completed the divesture of its original facility in British Columbia, Canada, for $5.7m.
