The line is the final piece of equipment required to launch NEXE's fully-compostable Nespresso-compatible pod in early Q3 2021. SATs are used to validate the functionality of equipment on-site following its installation.
"With our proprietary assembly line successfully installed, this will enable us to commercialize our Nespresso-compatible, compostable pods on schedule," said Ash Guglani, president of NEXE.
"We launched a fully compostable pod compatible with Keurig single-serve brewing systems earlier in 2021 with our in-house brand, XOMA Superfoods, and plan to expand our product offerings in Q3 with a Nespresso-compatible pod."
NEXE now has custom automation equipment for the production of the two leading single-serve formats, being Keurig-compatible and Nespresso-compatible pods, and will continue to purchase additional equipment to increase production as required to fulfill growing sales.
SATs require the equipment successfully complete production while following all process parameters and requirements. The manufacturer also sends its representatives to witness and verify the test. The Nespresso-compatible automation demonstrates NEXE's plant-based materials can be assembled at production speed proving the scalability of the technology. This assembly line will form the basis for additional production-scale equipment to increase production capacity to an estimated 50m NEXE Nespresso-compatible pods.
NEXE said more than 56bn single-serve capsules are discarded to the landfill every year, equivalent to more than 400 pods per second. The company added almost all of these end up in landfill, but in spite of this, consumption of single-serve pods continues to grow at an estimated 8.5% per year. With the launch of NEXE's Nespresso-compatible pod, the company said it aims to provide a sustainable alternative to consumers.
The new product is the culmination of NEXE's two-year partnership with Innovative Solutions Canada, which awarded the company $1m to support its development.
"Developing a compostable Nespresso-style pod required innovation in materials design, composting performance, and high-speed automation. We're extremely excited to see this all come together with this upcoming product launch," said Zachary Hudson, chief scientific officer at NEXE.