PLANO, Texas, March 1, 2022 /PRNewswire/ -- NuZee, Inc.
(NASDAQ: NUZE), a leading co-packing company for single serve
coffee formats, announced today that it has completed its
acquisition of substantially all of the assets of Dripkit, Inc.
("Dripkit"). The acquisition broadens NuZee's product portfolio and
provides a new type of pour over to deliver a variety of
single serve pour over coffee experiences to roasters and
consumers. Dripkit's customers are also anticipated to have access
to new resources and capabilities, including NuZee's current single
serve pour over and eco-friendly tea bag style coffee brew bag
formats.
Dripkit will now operate as a new Dripkit Coffee business
division of NuZee, which NuZee believes will permit it to scale
operations, reach more consumers and accelerate growth. Dripkit
offers a large-size single serve pour over format that delivers
what it believes to be a barista-quality coffee experience to
coffee drinkers in the United
States. The brand has combined its focus on convenience and
quality, as well as a goal of using first-rate, ethically sourced
coffee beans, to become a leader in the single serve coffee
category.
Transaction Highlights:
- Brand awareness: Dripkit is highly recognized in the single
serve pour over coffee category based in Brooklyn, New York. The acquisition
immediately provides NuZee with access to Dripkit's loyal customer
base and is expected to heighten NuZee's brand profile.
- Product portfolio leadership: The Dripkit pack sits on top of
the cup and projects to command a premium price point in the
market. Each Dripkit pack produces a 10oz cup, using 17g of
coffee.
- Shared purpose-driven values: Dripkit shares NuZee's commitment
to sustainability by aiming for responsible and ethically sourced
products that can enable mindful, responsible consumption for the
consumers by brewing one cup at a time.
- Leadership addition: Ilana
Kruger, Dripkit's Founder and CEO, will join the NuZee team
to facilitate a smooth integration and help to further grow the
business.
"We couldn't be more thrilled to welcome Dripkit to our brand
portfolio. Ilana has done a great job building Dripkit into a brand
loved by many coffee drinkers as well as many coffee industry
experts. We believe she has successfully cultivated a loyal
and diverse customer base," said Masa Higashida, President and CEO
of NuZee. "This acquisition is expected to benefit both NuZee and
Dripkit's customers, as well as our partners giving all of us an
opportunity to scale operations and grow together. We look forward
to expanding this growth and broadening our capabilities through
our resources."
Serving as a private label and co-packer for a variety of
roasters, Dripkit's large-size pour over format will be an addition
to NuZee's portfolio of innovative single serve pour over and tea
bag style coffee brew bags.
"NuZee's resources, capabilities, and continued commitment to
sustainability are exactly what the Dripkit brand needs to further
catapult its growth and success," said Ilana Kruger, Founder and CEO of Dripkit. "Part
of our process has always been to pack and seal our products by
hand, as this led to a standard that we knew would make us proud.
However, after seeing NuZee's facilities and witnessing the team's
attention to detail and individual product care, we were
immediately impressed with the overall quality and are excited to
see our Dripkit brand thrive amid this transition."
NuZee has acquired substantially all of the assets and assumed
certain specified liabilities of Dripkit for total
consideration of approximately $860,000 in cash and stock. The signing of the
asset purchase agreement was previously disclosed on February 22, 2022.
For more information on how to work with NuZee, visit
www.mynuzee.com.
About NuZee Coffee
NuZee, Inc., (NASDAQ: NUZE), is a leading 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. NuZee has production facilities in
the United States and Korea.
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, including supply chain interruptions;
general market acceptance of and demand for NuZee's products;
NuZee's reliance on third-party roasters to roast and blend coffee
beans necessary to produce its products and provide its co-packing
services; the fact that sales are completed on a purchase order
basis without any written agreement between NuZee and its partners;
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 NuZee's public reports and
NuZee's other filings made with the SEC.
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SOURCE NuZee, Inc.