This machinery will increase NEXE's production
capacity to over 50 million annual Keurig® Compatible
Pods
VANCOUVER, BC, Nov. 3, 2021 /CNW/ - NEXE Innovations
Inc. ("NEXE" or the "Company"), (TSXV: NEXE) (OTC Markets:
NEXNF) (Frankfurt: NX5), a leader in plant-based materials
manufacturing, is pleased to announce that it has completed its
Factory Acceptance Test ("FAT") for its assembly, filter form and
dosing automation. The successful test was finalized on
October 26, 2021 at our manufacturing
partner's facility in Europe. This
is the first of two custom machines that were ordered by NEXE in
February 2020, pre-pandemic. We
anticipate that this critical piece of equipment should arrive this
month at NEXE's headquarters in Vancouver, followed-up with a Site Acceptance
Test ("SAT") conducted by both our operations team and our European
partners. We expect this equipment to be commissioned within two
weeks of successful SAT.
This high-speed automation was designed and engineered based on
NEXE's proprietary specifications for the Company's
Keurig®-compatible NEXE Pod. As standard automation in the space
was not sufficient to assemble our compostable polymers, most of
the processes were pioneered by NEXE and its partners. The Company
expects to receive the second assembly and filling machine for
Keurig® compatible pods in early 2022, increasing NEXE's production
capacity to over 100 million annual Keurig® compatible pods.
"We are incredibly proud of the technology that we have
developed; it is truly for coffee lovers," said Ash Guglani,
President of NEXE. "This proprietary automation allows us to dose
more volume of coffee per capsule compared to leading
competitors."
The FAT is a process that evaluates the equipment during and
after the assembly process by verifying that it is built and
operating in accordance with design specifications. The successful
FAT was based on the following parameters:
- Machine capacity resulted in 200 capsules per minute with a
mechanical efficiency of over 93% and mechanical downtime at less
than 3.5%.
- The total packaging material loss was less than 4% and overall
quality performance was greater than 96%.
- Capsule filling target weights were set to 12g and maintained
this target within 0.96 of a gram. The capability index (CPk) of
1.8, is much better than the standard of 1.3, indicating a very
stable and capable filling operation.
"The FAT results prove that NEXE is able to consistently
produce our pods at a high rate while maintaining the performance
and taste profile that our customers demand from a superior pod.
This means that we will be able to continuously produce our pods
without losing the integrity of the product up to a capacity of at
least 50 million pods per year," added Guglani.
This machine means that NEXE will soon have custom automation
equipment for the production of pods that are compatible with both
of the two-leading single-serve coffee formats: Keurig® and
Nespresso® OriginalLine and addressing a sizable portion of the
growing potential 60 billion per year coffee pod market. The
Company also plans to continue to purchase additional equipment to
increase production capacity as required to fulfill growing
demand.
"This successful test demonstrates that NEXE's plant-based
materials can be assembled at production speed and proves the
scalability of the technology," added Guglani. "This moves us one
step closer to increasing our facility production capacity by 50
million pods with each dosing line."
The single-serve coffee pod and capsule market was measured at
US$25.07 billion in 2020, and it is
projected to register a compound annual growth rate (CAGR) of 7.07%
from 2021-2026, according to a report from Mordor
Intelligence.1
Learn more about NEXE Innovations online at https://nexeinnovations.com/investors/.
*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.
_______________
|
[1]
https://www.mordorintelligence.com/industry-reports/coffee-pods-and-capsules-market
|
About NEXE Innovations Inc.
NEXE
Innovations Inc. is a leader in plant-based compostable technology
and advanced materials manufacturing based in British Columbia, Canada. The company has
developed
one of the only patented, fully compostable, plant-based, single-serve coffee pods for use in leading single-serve
coffee machines. The proprietary NEXE pod is designed to reduce the
significant environmental impact caused by single-serve
pods, over 50 billion of which are discarded every year.
With over $60 million raised to date
from equity and government funding and over six years of
R&D, NEXE is well-positioned to meet the growing demand
for environmentally friendly and sustainable products in the
single-serve coffee sector and beyond. Learn
more: https://nexeinnovations.com/.
ON BEHALF OF THE BOARD OF DIRECTORS
NEXE INNOVATIONS INC.
s/ "Ash
Guglani"
Ash Guglani, President
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Neither the TSX Venture Exchange nor its Regulation
Service Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this release are forward-looking
statements or information, which include the launch of NEXE's new
coffee blends, ability to create other environmentally friendly
compostable packaging opportunities, development of technologies,
the potential of the Company's technology, future plans, regulatory
approvals, and other matters. Forward-looking statements consist of
statements that are not purely historical, including any statements
regarding beliefs, plans, expectations, or intentions regarding the
future. Such information can generally be identified by the use of
forwarding-looking wording such as "will", "may", "expect",
"estimate", "anticipate", "intend", "believe" and "continue" or the
negative thereof or similar variations. The reader is cautioned
that assumptions used in the preparation of any forward-looking
information may prove to be incorrect. Events or circumstances may
cause actual results to differ materially from those predicted, as
a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company,
including but not limited to, business, economic and capital market
conditions, the ability to manage operating expenses, consumer
demand for and sentiment towards the Company's products, security
threats, and dependence on key personnel. Such statements and
information are based on numerous assumptions regarding present and
future business strategies and the environment in which the Company
will operate in the future, including the demand for its products,
anticipated costs, and the ability to achieve goals. Factors that
could cause the actual results to differ materially from those in
forward-looking statements include, failure to obtain regulatory
approval, the continued availability of capital and financing,
equipment failures, litigation, increase in operating costs, the
impact of Covid-19 or other viruses and diseases on the Company's
ability to operate, competition, failure of counterparties to
perform their contractual obligations, government regulations, loss
of key employees and consultants, and general economic, market or
business conditions. Forward-looking statements contained in
this news release are expressly qualified by this cautionary
statement. The reader is cautioned not to place undue reliance on
any forward-looking information. The forward-looking statements
contained in this news release are made as of the date of this news
release. Except as required by law, the Company disclaims any
intention and assumes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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SOURCE Nexe Innovations Inc.