Namyang Dairy Products announced yesterday a $10 million deal to supply instant coffee powder to a company in Poland.
Namyang will be the first South Korean company to export plain coffee powder, though some companies export coffee powder mixed with milk powder and other flavorings.
Under the contract, Namyang will supply 500 tons of coffee powder to Poland’s Instanta, which will account for 15 percent of the production capacity of Namyang’s factory in Naju, South Jeolla.
Founded in 2000, Instanta produces and packages instant coffee that it distributes to Japan, America and many European countries.
Namyang said that it is worth noting that Korean coffee powder has made inroads into countries known for having a refined taste for coffee.
The deal is a major achievement for Namyang after it shifted its focus from milk to coffee and mineral water.
The dairy and instant coffee producer spent 180 billion won ($164.3 million) to build its Naju factory to increase its share of the domestic coffee powder industry, which is dominated by Dongsuh.
But the move has been met with little success, as Namyang remains the third-biggest player after Lotte-Nestle, which has a market share of about 7 percent.