Namyang Dairy Products has introduced a new line of instant coffee sticks, branded as ‘French Cafe Daily Americano,’ with prices starting as low as 99 won per stick. This launch follows the company’s recent release of small-cup coffee beverages and signifies an expansion of their product range to include more affordable options across various consumption formats.
Expanding Affordable Coffee Options
The new stick coffee line features two varieties: ‘Mild’ and ‘Arabica.’ The ‘Mild’ version is priced to be the most affordable, hitting the 99-won mark per stick, making it an attractive option for consumers who drink multiple cups of coffee daily. This strategic pricing aims to increase accessibility for everyday coffee drinkers.
Namyang Dairy Products explained that the cost-effectiveness of these new products was achieved by leveraging their in-house manufacturing capabilities and extensive production experience. This internal efficiency helps mitigate rising costs associated with global raw material price increases, such as green coffee beans.
Manufacturing Prowess and Quality Preservation
The company operates its own facilities for producing freeze-dried (FD) coffee at its Naju plant. Additionally, their Cheonan and Sejong plants are responsible for manufacturing coffee mixes. To ensure the quality and flavor of the new coffee sticks, Namyang Dairy has incorporated proprietary technologies like ‘Dualpresso’ and ‘Aroma Keeping’ methods, designed to preserve the coffee’s taste and aroma.
The ‘Mild’ variant focuses on a smooth, balanced taste profile, while the ‘Arabica’ version uses 100% Arabica beans for a distinct flavor. Both products are packaged in convenient, mini-stick formats, catering to portability and ease of use for consumers on the go.
Strategic Product Diversification
This move is part of Namyang Dairy’s broader strategy to segment its coffee product offerings based on price points and specific consumer needs. Last month, the company expanded its ‘French Cafe Akmaui Yukok’ line, which originally featured 250mL cups, by adding 200mL versions of Cafe Latte and Vanilla Latte. These were priced in the 900-won range, achieved by reducing volume and optimizing ingredient blends and production processes.
The success of these recently introduced smaller-volume, lower-priced options has been notable. The new cup coffee varieties, for instance, recorded over 210,000 units in wholesale orders within their first month of release, prompting additional production runs to meet demand.
Namyang Dairy plans to further expand its sales channels by including online platforms in the future, broadening the accessibility of its diverse coffee portfolio.
Consumer Demand for Value and Quality
Kim Jeong-hyun, a category manager at Namyang Dairy Products, commented on the evolving market dynamics. “With the continuation of high inflation, consumer demand is increasingly shifting towards everyday consumables like coffee, where both price and quality are key considerations,” Kim stated.
“Leveraging our internal coffee manufacturing expertise, we aim to continuously expand consumer choice by offering a wide array of products across different beverage formats, such as cup coffee and stick coffee, and across various price segments,” he added. “Our goal is to provide options that cater to a broad spectrum of consumer preferences and budgets.”
The company’s proactive approach in diversifying its coffee offerings, from affordable stick formats to convenient cup beverages, underscores a commitment to meeting the changing demands of the modern consumer in a competitive market. By focusing on cost-efficiency without compromising on taste and quality, Namyang Dairy is positioning itself to capture a larger share of the daily coffee consumption market.
