"Sold 800 Million Won Worth in the US Alone"... 'Kkotcha Stick' Captivating Global Taste Buds [K-Food Captivating the World]⑦

"Instead of tea bags stacked in cloth or paper, we developed 'Kkotcha Stick,' a new form of flower tea that preserves the flowers and flower stems as they are. Although it is more expensive than tea bag products, it is popular in the United States because you can enjoy not only the taste and aroma but also the entire flower visually." (Lee In-pyo, CEO of Kkot-eul Damda)

On the 24th, CEO Lee In-pyo is explaining the products at the Kkot-eul Damda office located in Guri, Gyeonggi Province. (Photo by Joo Sang-don)

On the 24th, we visited 'Kkot-eul Damda,' a flower tea company located in Guri-si, Gyeonggi Province. Kkot-eul Damda produces flower tea using flowers from about 40 domestic farms and exports them not only within Korea but also to the United States, Australia, Singapore, and Japan. Last year alone, it exported about 1 billion KRW worth of products.

Kkotcha Stick is the result of CEO Lee In-pyo's quest for a 'new flower tea.' He explained, "While searching for a way to fully experience the natural color, aroma, and taste of flowers, I created Kkotcha Stick so that customers can enjoy not only the flower blossom but also the flower stem. Flower tea sticks, which are whole flowers and stems as one tea rather than tea bags, and butterfly-shaped tea holders (tags) called Butterfly Tea Bag Flower Tea are especially popular among female consumers."

CEO Lee did not initially target overseas markets. He founded Kkot-eul Damda in 2016 and launched the Kkotcha Stick product in 2017. However, Kkot-eul Damda faced a crisis during the COVID-19 pandemic that swept the world in 2019. At that time, CEO Lee turned his attention to export markets. He said, "We operated road shops at Hyundai Department Store Middle East branch and in Seoul’s Hapjeong and Seochon areas, but due to COVID-19, we had to drastically reduce staff. From then on, we actively promoted overseas online sales through Amazon and Shopee."

Flower tea sticks (left) and butterfly tea bag flower tea from Kkot-eul Damda.

Kkot-eul Damda actively utilized government startup support programs. CEO Lee introduced, "Since we make flower tea using domestically grown flowers, the product price is high, and after paying commissions to platform companies, it was difficult to make a profit. Because of this situation, challenging exports itself was daunting, so we naturally sought support projects and started exporting through export voucher programs, logistics support, and joint overseas logistics."

This year, Kkot-eul Damda also received support from the Korea Agro-Fisheries & Food Trade Corporation (aT)'s 'Global Brand Development Support Project.' This project supports the development of export brands and enhances overseas recognition for excellent domestic agricultural food companies by providing support for local online mall entry, banner advertising, and social media (SNS) promotion costs. CEO Lee emphasized, "The Global Brand Development Support Project was like receiving ammunition to promote our products in overseas markets through advertising. Thanks to this, we were able to secure overseas sales staff who can spend 5 million to 10 million KRW monthly on advertising and sales."

As Kkot-eul Damda’s products gained popularity overseas, sales increased from about 670 million KRW at the time of its founding in 2016 to 2 billion KRW last year. Half of this, 1 billion KRW, was from overseas sales. In particular, about 800 million KRW worth of flower tea was sold in the United States alone.

Products of Kkot-eul Damda. (Photo by Joo Sangdon)

The success in the U.S. market was largely due to participation in various food expos. CEO Lee explained, "Through online channels, spa businesses in the U.S. placed large orders, and we realized that premium tea products could succeed in spas. Since then, we have been expanding our customer base by participating in spa expos, cafes, and gift industry expos in the U.S." Kkot-eul Damda plans to participate in more than 20 expos in the U.S. next year to promote its products.

CEO Lee stated, "We focus on manufacturing Kkotcha Stick, and byproducts from the manufacturing process are made into tea bags. In the U.S., kombucha, mainly in liquid form, is popular, but recently demand for powdered forms has increased, so we are developing products accordingly. We will continue to create flower teas that consumers want and actively target the U.S. tea market."