NuZee Expands West Coast Single Serve Coffee Manufacturing Footprint with Apffels

Rhea-AI Summary

NuZee, Inc. (NASDAQ: NUZE) has announced a partnership with California-based coffee roaster Apffels to enhance its manufacturing capabilities on the West Coast. This collaboration will allow NuZee to test the innovative TiMELESS® technology, which could eliminate the need for plastic degassing valves used in coffee packaging, potentially reducing 1.85 billion such valves sold in North America in 2022. The partnership aims to improve operational efficiency and sustainability by investing in specialized equipment for single-serve coffee products. NuZee expects this move to bolster margins and expand its manufacturing capacity amid supply chain uncertainties.

Positive

• Partnership with Apffels enhances manufacturing footprint on the West Coast.
• Testing of TiMELESS technology could lead to significant reduction in plastic waste.
• Investment in specialized equipment expected to improve operational efficiency.
• Potential for increased margins and capacity as a result of the partnership.

Negative

• None.

Partnership to provide first Opportunity to test TiMELESS® technology

RICHARDSON, Texas, March 7, 2023 /PRNewswire/ -- NuZee, Inc. (Nasdaq: NUZE), a leading innovator in coffee technology and co-packer of single serve specialty coffee formats, named 2022's most innovative company in coffee processing by World Finance, today announces that it has entered into a manufacturing agreement with nationally-recognized, California-based coffee roaster Apffels (EDW. Apffel Co.), which will expand NuZee's manufacturing footprint on the West Coast in an effort to increase efficiencies, grow its margins, and accommodate substantial additional capacity.

In addition to manufacturing NuZee's innovative single serve coffee brew bags and pour over products, NuZee plans to begin testing the TiMELESS® technology, a new flexible film sealing technology that eliminates the need for one-way plastic degassing valves that are commonly used in the coffee industry at Apffels' manufacturing facility. An estimated 1.85 billion one-way plastic degassing valves were sold in 2022 in North America.  If the TiMELESS test is successful, NuZee plans to expand with the technology.

Apffels has a long history of carefully sourcing and crafting high quality coffees in a variety of formats, but also has a leading-edge private label manufacturing facility. NuZee is investing in Apffel's manufacturing space, expanding its capabilities with specialized equipment specific to producing single serve pour over and brew bags. The partnership will also facilitate TiMELESS's debut as an innovative and potentially disruptive new way to seal coffee bags. With this partnership, NuZee expects to expand a holistic coffee supply and vertically integrated manufacturing program to its existing and new customers.

Apffels has taken steps to lower its carbon footprint and continues to look for viable carbon-reducing solutions. Its facility is also SQF and USDA Organic certified.

"Apffels is an excellent partnership, as it has the capability to manufacture our single serve formats, provide capabilities like roasting and coffee co-packing, and facilitate the execution of the TiMELESS methodology for sealing our coffee bags," says Masa Higashida, NuZee CEO and President. "We expect significantly increased efficiency, reduced logistical costs, and access to more sustainable manufacturing practices." 

"As a coffee roaster with over a century of experience in selecting the highest quality coffee beans and expertly roasting them to perfection, Apffels is committed to continuous improvement. Despite being 109 years old, Apffels has embraced new technology, methods, and ideas that enhance coffee quality and elevate the overall coffee-drinking experience.  Through its partnership with NuZee, Apffels is excited to embrace new single-serve coffee formats that deliver sustainability, convenience, and exceptional coffee quality and to start testing the innovative TiMELESS technology in an effort to reduce valve consumption. Apffels is dedicated to collaborating with NuZee to expand the availability of and grow the market for these innovative single-serve formats. Together, the two companies aim to provide coffee enthusiasts with a new and elevated coffee-drinking experience," Darryl Blunk, president and CEO of Apffels continues.

Further, the partnership provides NuZee with West and East Coast options for large-scale manufacturing. NuZee currently utilizes manufacturing facilities in Vista, California, Santa Fe Springs, California, Lenoir City, Tennessee and Seoul, South Korea. The Apffels partnership can further enhance operational flexibility and certainty at times when there are supply chain disruptions due to unforeseen circumstances, such as a pandemic or natural disaster.

For more information on how to work with NuZee, visit mynuzee.com.

About Apffels 
Established in 1914, Apffels roots run deep in the coffee industry. Its passion for coffee and its customers is found in every aspect of the company, from its co-associates to the facility, from bean selection to roasting, to packaging and delivery. Meticulous care and attention to detail creates the Apffels difference. Customers experience their dedication to delivering a better product at a fair price. To find out more, visit www.apffels.com.

About NuZee Coffee 
NuZee, Inc., (NASDAQ: NUZE), is a leading innovator in coffee technology and co-packing company for single serve coffee formats that partners with companies of all sizes to help them develop within the single serve and private label coffee category. Providing innovative and eco-conscious solutions with the flexibility and capacity for both small roasters and large global brands, NuZee is revolutionizing the way single serve coffee is enjoyed in the United States. Through the brand's unique process, NuZee fulfills every aspect of co-packing needs, from roasting and blending, to packing and packaging.

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: NuZee's plan to obtain funding for its operations, including funding necessary to develop, manufacture and commercialize its products; the impact to NuZee's business from COVID 19 global crisis; general market acceptance of and demand for NuZee's products; and NuZee's commercialization, marketing and manufacturing capabilities and strategy; for 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 NuZee's public reports and NuZee's other filings made with the SEC.

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SOURCE NuZee, Inc.

FAQ

What is the partnership between NuZee and Apffels about?

The partnership involves NuZee expanding its manufacturing footprint on the West Coast with Apffels to improve efficiencies and test the TiMELESS technology.

What is the TiMELESS technology that NuZee is testing?

TiMELESS technology is a flexible film sealing method that eliminates the need for one-way plastic degassing valves in coffee packaging.

How many plastic degassing valves were sold in North America in 2022?

An estimated 1.85 billion one-way plastic degassing valves were sold in North America in 2022.

What are the expected benefits of the partnership for NuZee?

The partnership is expected to enhance operational efficiency, reduce logistical costs, and expand manufacturing capacity.

What is NuZee's stock symbol?

NuZee is traded under the stock symbol 'NUZE' on NASDAQ.