• by Erik Oster , July 14, 2023

Packaging and delivering quality coffee to consumers can be a tough bean to crack, particularly with customers more concerned than ever with freshness and sustainability. Checking both those boxes simultaneously presents all sorts of challenges which seem to put those two dimensions of your morning roast in conflict.

This month, NuZee -- a coffee technology company and co-packer for such brands as Stumptown and Vesta -- announced a five-year licensing deal with craft beer marketer Stone Brewing. Under the agreement, NuZee will co-manufacture Stone Brewing specialty coffee products and distribute them nationwide through such outlets as convenience stores, natural and traditional grocery stores, office and hotel brokers, and a dedicated D2C website.

CPG Insider caught up with NuZee CEO Masa Higashida to discuss this happy coupling of coffee and beer, and the company’s focus on sustainability.

This interview has been edited for length and clarity.

CPG Insider: How did the Stone Brewing partnership come about?

Masa Higashida: Both our companies are based in San Diego. We roasted seasonal coffee beans for them for the last three years.

Stone customers are unsatisfied with industrialized, commercialized beer. That makes for a lot of customer overlap, so we proposed a licensing deal. This is the first time we’ve entered into this type of agreement, which allows us to create the product and market it to consumers.

What is the importance of partnerships to NuZee?

If our own brand is too strong, it potentially competes with our partners, so I'm hesitant to push our own brand. On the other hand, as a growing company, establishing our own brand presents opportunities.

If we push our partner’s brand like our own brand, such as with this licensing deal, I expect the market and our client [Stone] will understand that NuZee has its own brand. This is one of the big reasons for NuZee to pursue such partnerships.

Can you share anything about the future of the Stone partnership?

This is a global license, so we can market and ship Stone coffee overseas, especially to Asia. We’re just launching the coffee product, so that needs to be our focus now. But potentially, we can also make coffee-related products under this deal -- like coffee cosmetics or cafes under the Stone name.

What is the importance of sustainability and environmental impact to NuZee and how have you approached creating more sustainable solutions?

It’s important to me personally to bring products and technology to the industry that benefit the environment and I believe that ecological, sustainable products are important to consumers.

Plastic capsules are a popular brewing method in the U.S. Every time you brew capsule coffee, it creates plastic waste. But our filter is industrial compostable and the package is made with recyclable materials. One of the key points of our company is switching from plastic capsules to compostable film. Since it’s more environmentally friendly, it benefits not only coffee drinkers but also non-coffee drinkers.