Mr. Ash Guglani reports

NEXE HAS SUCCESSFULLY MET THE TESTING REQUIREMENTS FOR BPI CERTIFICATION

The Biodegradable Products Institute (BPI) has completed its verification process and has confirmed that Nexe Innovations Inc.'s fully compostable, single-use beverage pod and its associated components meet the stringent compostable requirements set out by the BPI.

"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 unrivalled 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 Mr. 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 over 80 billion. Compostable single-use pods were only approximately 4 per cent of the total estimated market, an estimated increase of over three times from 2020. This translates to approximately 3.5 billion compostable pods. Nexe believes that alongside the competitive features of the Nexe pod, the in-house manufacturing capacity of approximately 500 million pods at its facility in Windsor, Ont., will provide Nexe with a strong market position in a fragmented space.

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.

About Nexe Innovations Inc.

Nexe Innovations 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.

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