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NuZee to end sales of plastic-encased single serve coffee capsules

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VISTA, Calif., U.S. — NuZee, Inc., a specialty coffee company and a leading U.S. single serve pour over coffee producer and co-packer, announced yesterday that it will cease all sales of plastic-encased single serve coffee capsules by January 1, 2020. For the nine months ended June 30, 2019, these products accounted for less than 10% of NuZee’s total sales.

“This decision is based on several factors, including the growth of the Company’s single serve, pour over co-packing operations and our commitment to sustainability and environmental stewardship,” said Masa Higashida, NuZee’s Chief Executive Officer.

“We believe that our single serve pour over coffee products offer superior flavor and taste compared to the plastic-encased, single serve capsules compatible with single cup coffee brewing systems. We also expect to introduce 100% biodegradable or recyclable single serve, pour-over options by July 2020, making them the most environmentally conscious single serve product on the market.”

NuZee commenced selling plastic-encased, single serve coffee capsules in 2014. In 2016, the Company shifted its focus and began producing single serve pour-over coffee for the US market in order to introduce one of the most popular methods of enjoying coffee in Japan where approximately 2.5 billion of these cups are consumed each year.

The overwhelmingly positive US market response led the Company to create a new division called NuZee Co-Packing Services, which has grown considerably since its inception. NuZee is producing single serve pour-over coffee for some of the top roasters and brands in the industry.

NuZee’s current capacity is 75 million single serve, pour over cups per year assuming two production shifts per business day; at present, the Company operates one shift per business day.

The Company’s Vista, California manufacturing facility is SQF Level 2 certified and is also certified Fair Trade, Organic, Kosher, and Halal. In early 2020, NuZee expects to commence operations at a new 16,603 square-foot facility in Plano, Texas which will serve as the Company’s new single serve pour over co-packing hub. Once operational, NuZee plans for an additional 200 million units of capacity per year assuming two production shifts per business day.”

“We are continuing to position our business towards the manufacture of single-serve pour over coffee with a focus on co-packing and private labeling for regional and global brands,” said Travis Gorney, President and COO. “We are very pleased with our success to date and remain focused on further elevating our industry profile and broadening our brand relationships.”