The Estonian instant coffee brand Kohe, which has been operating in the local market for years, is now looking beyond neighbouring countries and has recently entered the South Korean market. Its goal is also to sell instant coffee on Amazon.

To enter the Korean market, Kohe sought Enterprise Estonia‘s support to participate in a local food fair to showcase its products. Finding a reliable distributor and adapting the brand and packaging to meet Korean market needs were crucial steps in this expansion.

Despite being new to the Korean market, Kohe has ambitious plans to become Korea’s leading instant coffee brand and aims to further expand into the Japanese market. Below is an interview with Jordan Vähesoo, Sales and Export Manager at Coffee Crystal OÜ, the company behind the brand Kohe.

What markets is Coffee Crystal currently operating in, and why are you entering the Korean market now?

We sell primarily in our home market and have also started selling in Finland. We want to increase our visibility in neighbouring countries. Additionally, we have set a goal to establish a presence on Amazon.

As for exports, our product and its nature, you always start looking at where your product might fit in the world. Sometimes, the country you are operating in might not be the best place for it. We are not experts, but we began exploring other world regions out of curiosity. With Korea, we started receiving a lot of positive signals. Eventually, Enterprise Estonia helped us attend the local trade fair, and the rest is history.

What was the key factor in entering that specific market?

As previously mentioned, we received many positive signals. Another crucial factor was finding a reliable distributor. It took us a year from the initial introduction to making our first sale. Thanks to the distributor’s input, we have adjusted the brand, packaging, and even the quantity of coffee to fit the Korean market better.

What are your initial experiences with the peculiarities of the Korean market?

Come back with this question in a year; our first shipment only went out mid-July.

What is your longer-term plan for entering the Korean market? What are the next steps or the perspective for the coming years?

Our long-term plan is to become Korea’s leading instant coffee specialty brand. After Korea, Japan is our next target market.

Who are your local partners and distributors (large stores, restaurants) in Korea? Who else are you hoping to partner with?

We have signed an exclusive agreement with a distributor in Korea. It will be the distributor’s responsibility to seek out new clients, but we are, of course, ready to make all kinds of efforts to succeed in the region.

What market share are you aiming for in Korea?

It’s too early to say. Our primary goal was to enter the market and see how people respond to our product and brand. Then, together with the distributor, we will start planning concrete steps to realise our vision of being the country’s largest specialty instant coffee brand.

Which products does Coffee Crystal hope will succeed in Korea? Why these?

Currently, we have Colombian and Brazilian coffees in our range. These are the two main coffees, with different flavour nuances but suitable for daily consumption. Of course, we are expanding our range. Over the next year, we also plan to introduce decaffeinated coffee to the market.

What kind of assistance have you received in entering the Korean market?

We have participated in two trade fairs with Enterprise Estonia and received many good contacts and clients through them. Of course, Enterprise Estonia also helps to support the company’s image. Thus, the country’s contribution has been significant.

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