Nongshim said on the 3rd that it has signed a strategic partnership with Nestlé Korea and will begin domestic offline distribution of about 150 products in Nestlé's coffee and confectionery categories starting in March.
Nongshim said it expects the partnership to generate synergies by combining its own sales network with Nestlé's brand power.
The coffee category Nongshim will handle is one of Nestlé's core business groups. It includes the brands "Nescafé," "Dolce Gusto," and "Starbucks At Home," and offers a wide lineup ranging from whole beans to stick coffee and capsule coffee, Nongshim said. Keeping pace with the growth of home cafés and capsule coffee, Nongshim plans to supply Nestlé products with strong brand power to key channels to further expand sales.
Nongshim will also sell Nestlé's confectionery brand "KitKat," as well as the B2B (business-to-business) brands "Maggi" and "Buitoni," to expand its presence in food service channels such as hotels and restaurants.
A Nongshim official said, "Through Nongshim's distribution know-how, which has led to the successful market establishment of various global brands, we will focus our capabilities so Nestlé products can reach domestic consumers more closely."
A Nestlé Korea official said, "Nestlé products are loved worldwide and are growing rapidly domestically," adding, "We will actively leverage the strengths of both companies to create sustained growth drivers across the category."