“Our line of premium superfood coffees are conveniently packaged in our single-serve, fully compostable, plant-based NEXE pods, which are compatible with Keurig single-serve brewing systems…Our lives are busier than ever, and we created these pods because we believe that it is possible to create products that are both convenient and sustainable,” said Marc Bains, brand manager for XOMA Superfoods.
Second time’s a charm, right? On April 13, 2021, NEXE released its Mindful Mushroom coffee via XOMA Superfoods, the Company’s signature consumer product line. Following the news, NEXE’s share price continued to drop from $1.75 to $1.64. To put things into perspective, NEXE previously closed at $1.40 as of yesterday, indicating a significant drop since the release of its Mindful Mushroom coffee earlier in the month. Additionally, after the launch of its ecommerce store on April 6, 2021, NEXE’s share price officially dropped below $2.00 on April 7, 2021. Needless to say, NEXE has struggled to make any headway in the market as of late.
However, the global ketogenic diet market size was valued at USD $9.57 billion in 2019 and is expected to expand at a CAGR of 5.5% from 2020 to 2027, according to ReportLinker. With this in mind, NEXE hopes that its customers will be able to enjoy their morning cup of keto micro-ground coffee as part of a ketogenic diet, fasting regime or simply as part of a healthy lifestyle. By targeting the ketogenic diet market, the Company could potentially find the success it was looking for in the superfoods market. Furthermore, North America represented the largest regional market for ketogenic diets with more than 30.5% share in 2019. I may be a pessimist, but the ketogenic diet market looks much more promising for NEXE. There’s no harm in cheering for the underdog, right?
“Both our MCT and mushroom coffees have been in high demand from customers, and we are excited to add our new Keto coffee to the lineup…In less than one month, we have successfully added three SKUs to our XOMA Superfoods lineup and look forward to introducing additional SKUs. We are on a mission to deliver sustainable, high-quality, great-tasting superfoods that support the health of our customers and the health of the planet,” added Bains.
Although NEXE’s performance has struggled, the Company has managed to introduce multiple new SKUs in a short period of time. However, I am personally interested in NEXE’s financial results as I am sure many investors are. Whether or not NEXE has met sales targets following the release of its Mindful Mushroom coffee and keto micro-ground coffee pods will provide investors with valuable insights regarding the Company’s future. Regardless, things are looking good for NEXE as the Company’s share price continues to rise following the latest news.
NEXE’s share price opened at $1.45 today, up from a previous close of $1.40. NEXE is currently up 21.43% and the Company’s share price sits at $1.70 as of 11:51AM ET. This indicates that there has been significant change following NEXE’s latest announcement.