Dongseo Foods Enters Capsule Coffee Market... 'Kanu Coffee Machine' to Launch

Dongseo Food is challenging the capsule coffee market. In response to the shrinking mix coffee market, the company plans to secure new growth engines by expanding its base to the growing capsule coffee market, which is gaining popularity based on the home cafe trend.

Kanu Barista Urban (left) and Kanu Barista Breeze. / Photo by Dongseo Foods

According to the industry on the 14th, Dongseo Food will launch its first capsule coffee product, 'Kanu Barista,' along with the Kanu Barista coffee machine, and will start selling them nationwide through major supermarkets and online channels from the 16th. Kanu Barista consists of two types of coffee machines, eight types of capsules exclusive to the Kanu Barista machine, and six types of capsules compatible with other machines. The coffee machines are priced at 199,000 KRW for the ‘Kanu Barista Urban’ and 169,000 KRW for the ‘Kanu Barista Breeze.’ The exclusive capsules for Kanu Barista will be sold at 7,900 KRW for a pack of 10, while compatible capsules for other devices will be priced at 6,790 KRW for a pack of 10. The exclusive capsules come in eight varieties including Light, Medium, Dark, Ice, and Decaffeinated, while the compatible capsules consist of six varieties.

Dongseo Food applied the patented 'Triangle Tamping' technology to the Kanu Barista machine. This technology presses the coffee firmly just before extraction to maintain consistent aroma and quality. The Kanu Barista exclusive capsules contain 9.5g of coffee beans, about 1.7 times more than conventional capsule coffee, allowing one capsule to brew a mug-sized Americano. The Kanu Barista machine was designed by Benjamin Hubert, a leading British designer.

Cano Barista model cut. Photo by Dongseo Foods

Dongseo Food’s entry into the capsule coffee market was already anticipated since last year. While the ready-to-drink coffee market has been shrinking, the capsule coffee market has been growing. The ready-to-drink coffee market reached 1 trillion KRW in 2017 but has steadily declined to 850 billion KRW in 2018 and 780 billion KRW in 2020. Dongseo Food holds over 80% market share in the ready-to-drink coffee segment. Conversely, the capsule coffee market, which was worth 100 billion KRW in 2018, nearly doubled to 198 billion KRW in 2020 and grew to over 400 billion KRW last year. The consumption structure has continuously evolved with trends like home cafes and office cafes during the COVID-19 pandemic, driving sustained growth.

Dongseo Food plans to solidify its position in the coffee market and establish a long-term growth foundation by dominating the capsule coffee market following its success in ready-to-drink coffee. A Dongseo Food official said, "The newly released Kanu Barista coffee machine and capsule coffee were developed to allow consumers to conveniently enjoy the highest quality coffee at a reasonable price, reflecting research on domestic consumers’ coffee machine usage patterns and capsule coffee taste preferences." He added, "With the launch of capsule coffee, Kanu will become synonymous with coffee that consumers can easily enjoy in all spaces, including homes and offices."