Noodle maker Nongshim aims to jump into coffee mix market
Nongshim, Korea’s top instant noodle maker, announced yesterday that it will set its sights on the local instant coffee mix market in a bid to break into the competitive industry.
“With the new product, Nongshim will increase its presence in the local instant coffee mix industry to claim a double-digit share within three years,” an official from the company said.
The instant coffee mix is a stick-shaped packet filled with instant coffee powder, powdered cream and sugar, which is popular in Korea due to its affordability and convenience.
The country’s instant coffee mix market has been growing steadily since market leader Dongsuh Food developed the product in the 1970s, with the combined sales reaching 1.2 trillion won ($1.12 billion) in 2012, according to market researcher AC Nielsen.
Dongsuh Food dominates the market with a 79.6 percent share with its flagship brand Maxim.
Namyang Dairy Products, which launched its French Cafe Coffee Mix in late 2010, accounted for 12.6 percent of the instant coffee market last year, far outpacing the former No. 2 player Nestle S.A., which held 5.1 percent.
Meanwhile, other new players showed lackluster performances in the local market last year, with Lotte Chilsung Beverage, Korea’s top soft drink maker, accounting for only 1.4 percent. Seoul Milk, the country’s largest milk manufacturer, also has a weak presence in the domestic coffee market. Yonhap
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