NuZee (d/b/a/ Coffee Blenders®) And Golden Ratio Sign Co-Packing Agreement For Single-Serve Coffee Bags

Rhea-AI Summary

NuZee, Inc. (NASDAQ: NUZE), a leading U.S. specialty coffee co-packer, announced a co-packing agreement with Golden Ratio, an Austin-based startup known for its low-acid, tea-like 'gold coffee.' Production at NuZee's Vista, California facility commenced in May 2020. This partnership aims to create eco-friendly, single-serve coffee pouches, catering to the growing market of environmentally conscious consumers. Golden Ratio offers two flavored varieties at launch: Vanilla Coconut and Chai Spiced, highlighting convenience and sustainability in the coffee industry.

Positive

• Partnership with Golden Ratio enables entry into the low-acid coffee segment.
• Production commenced in May 2020, indicating a swift operational start.
• Focus on eco-friendly packaging aligns with rising consumer demand for sustainable products.
• Unique offering with 'gold coffee' could capture new market niche.

Negative

• Reliance on demand for Golden Ratio's products may pose risks if they do not meet market acceptance.
• Potential need for substantial additional funds could impact financial stability.

VISTA, Calif., July 15, 2020 /PRNewswire/ -- NuZee, Inc. (NASDAQ: NUZE) ("NuZee" or "the Company"), a specialty coffee company and a leading U.S. single serve coffee producer and co-packer, today announced that it has signed a co-packing agreement with Golden Ratio, an Austin-based startup that roasts gold coffee. Under the terms of the agreement, NuZee will prepare and custom package Golden Ratio's coffee into single serve "tea bag style" coffee pouches as it received orders from Golden Ratio. Production at NuZee's facility in Vista, California commenced in May 2020.

Teaming with NuZee, Golden Ratio is poised to disrupt the coffee category with a craft beverage that—true to its name—is golden. By roasting its beans at lower temperatures and for a longer period of time, Golden Ratio created "gold coffee," which tastes like tea while having the caffeine kick you expect from coffee. This new coffee is also five times less acidic than regular coffee and can easily be brewed hot or cold thanks to the tea bag style format provided by NuZee. Its luxuriously smooth flavor is keto-friendly with zero sugar or additives.

At launch, Golden Ratio is offering two flavored varieties, Vanilla Coconut and Chai Spiced, as well as an original flavor designed with intermittent fasters in mind. Vanilla Coconut is blended with natural vanilla flavors and toasted coconut for a subtle sweetness and smooth finish. Chai is blended with traditional flavors like cardamom, cinnamon, allspice and ginger for a cup of comfort that's familiar and refreshing. Original has a very subtle, nutty flavor that's easy on taste buds and digestion, particularly important to those who morning fast or are looking for a gentler coffee that still provides ample caffeine.

"Golden Ratio sought to create the ideal balance between flavor, convenience and sustainability," said Clark Nowlin, Co-Founder and CEO of Golden Ratio. "NuZee was the perfect partner to help us accomplish this with eco-friendly, single-serve coffee pouches. We are excited to continue working together to help our customers start their day the Golden way."

According to a recent Nielsen survey, 48% of Americans are looking to change their consumption habits to reduce their impact on the environment. Meanwhile, demand for single serve coffee, which tends to come in unnecessary single-use plastic pods, is booming. NuZee, the largest U.S. co-packer of alternative single serve coffee formats serves brands that cater to environmentally-conscious customers who also prioritize convenience.

"Now more than ever we are committed to supporting independent coffee roasters like Golden Ratio in their quest to bring eco-friendly and flavorful brews to coffee lovers," said Travis Gorney, NuZee Chief Marketing Officer. "Manufactured at our production facility in Vista, California, we grind the beans to our partners' specifications and offer scalable options for small and large coffee roasters and brands."

NuZee's Vista facility is the only currently operating and SQF, Kosher, and USDA certified single-serve pour-over coffee and tea bag style coffee bag co-packing facility in the United States. Learn more about NuZee's co-packing capabilities at pourovercopacking.com.

About NuZee and Coffee Blenders

NuZee, Inc. (d/b/a Coffee Blenders®) is a specialty coffee company and a leading U.S. single-serve pour-over and t-bag style coffee producer and co-packer. We own highly sophisticated packing equipment developed in Asia for pour over coffee production and possess exclusive agreements that restrict North American competitors' access to equipment and pour over filters.  We co-pack single-serve pour-over coffee products for dozens of customers in the U.S. market and also co-pack for the Korean market. Our California facility is SQF level 2 certified facility is Fair Trade, Organic, Kosher and Halal. 

About Golden Ratio Coffee

Golden Ratio is on a mission to help people start their day the golden way, one gold coffee cup at a time. Golden Ratio invented a new coffee, gold in color, that's 5x less acidic than regular coffee and tastes more like tea. With convenience in mind, Golden Ratio coffee is easy-to-brew with its single-serve pouches and can be hot or cold brewed. Based in Austin, Texas, Golden Ratio currently offers three gold coffee varieties, all available for nationwide shipping at www.drinkgoldenratio.com.

Forward-looking Statements
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. NuZee cautions you that such statements are simply predictions and actual events or results may differ materially. These statements reflect NuZee's current expectations, and NuZee does not undertake to update or revise these forward looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other NuZee statements will not be realized. Further, these statements involve risks and uncertainties, many of which are beyond NuZee's control, which could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties, many of which are beyond our control, include: the effects of the COVID-19 pandemic on our operations and general economic conditions; the amount of our product that Golden Ratio order; general market acceptance of the product; and our need for substantial additional funds; for a description of additional factors that may cause NuZee's actual results, performance or expectations to differ from any forward-looking statements, please review the information set forth in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's public reports filed with the SEC and in the preliminary prospectus and accompanying prospectus relating to the offering to be filed with the SEC.

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SOURCE NuZee, Inc.

FAQ

What is the recent co-packing agreement involving NuZee (NUZE)?

NuZee signed a co-packing agreement with Golden Ratio to produce single-serve coffee pouches, commencing production in May 2020.

What products are being launched under the Golden Ratio partnership with NuZee?

The initial launch includes two flavored varieties: Vanilla Coconut and Chai Spiced, along with an original flavor.

How does Golden Ratio's coffee differ from traditional coffee?

Golden Ratio's coffee is five times less acidic than regular coffee and is designed to taste more like tea while providing the same caffeine kick.

Where is NuZee's production facility located?

NuZee's production facility is located in Vista, California.

What are the potential risks associated with NuZee's agreement with Golden Ratio?

Key risks include reliance on the market acceptance of Golden Ratio's products and the need for additional funding.