NuZee (d/b/a/ Coffee Blenders®) To End Sales Of Plastic-Encased Single Serve Coffee Capsules

Oct. 31, 2019

VISTA, Calif., Oct. 31, 2019 /PRNewswire/ -- NuZee, Inc. (OTCQB: NUZE) ("NuZee" or "the Company"), a specialty coffee company and a leading U.S. single serve pour over coffee producer and co-packer, announced today 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."

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 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 this equipment and associated 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 and is also certified Fair Trade, Organic, Kosher, and Halal.

Learn more about NuZee's co-packing capabilities at

Forward Looking Statements

Any statements that are not historical facts contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, NuZee cautions you that such statements are simply predictions and actual events or results may differ materially. These forward-statements involve known and unknown risks, uncertainties and other factors which may be beyond our control, and which may cause our actual results, performance or

achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  We have based these forward-looking statements upon information available to management as of the date of this release and management's expectations and projections about certain future events. It is possible that the assumptions made by management for purposes of such statements may not materialize. Such statements may involve risks and uncertainties, including but not limited to those relating to the Company's ability to secure orders under the existing co-packing agreements, increase production, product demand, pricing, market acceptance, the effect of economic conditions, intellectual property rights, the outcome of competitive products, risks in product development, and other factors 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 Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statement for events or circumstances after the date on which such statement is made.