The functional beverage market is witnessing a rapid expansion driven by a new wave of Korean-inspired wellness products. Among the frontrunners is Clôud Cafe, an emergent brand that is scaling its operations significantly across major national retail platforms.
Launched in late 2024 by entrepreneur Olive Kim, the brand features an innovative assortment of collagen-infused coffees and teas. Clôud Cafe is now gearing up to substantially expand its physical footprint at both Ulta Beauty and Target this November. With this upcoming expansion, the brand’s products will be available in more than 2,000 collective retail doors nationwide, marking a major milestone for the young company as it bridges the gap between everyday indulgence and functional health.
For Kim, the launch of Clôud Cafe represents a continuation of a deeply rooted entrepreneurial journey in the beauty and wellness space. Her family originally launched The Crème Shop as a Los Angeles manufacturing business in the 1980s. Kim later took the reins, transforming the enterprise into a celebrated K-beauty product line that eventually caught the attention of industry giants, culminating in its acquisition by LG H&H in 2022.
Following that successful exit, Kim found herself drawn to a new sector: the burgeoning intersection of Korean wellness culture and modern functional nutrition. With Clôud Cafe, she sought to merge traditional Korean wellness philosophies with the vibrant, trendsetting aesthetic and culinary meticulousness of South Korea’s contemporary coffee scene.
“The coffee culture in South Korea is so innovative and so beautiful—every coffee shop is extremely aesthetically pleasing. They take a lot of pride in the ingredients they use and where their beans are sourced from. They each have specialty drinks,” said Kim, who is Korean American. Reflecting on her transition from beauty to beverages, she noted, “After exiting The Crème Shop, I became fascinated with collagen. I thought about combining the two—like, what if we could create a wonderful, delicious coffee that also has wellness benefits?”
This vision materialized into a unique line of functional beverage powders designed to support both inner and outer well-being. Each serving of a Clôud Cafe drink is formulated with 1,000 milligrams of marine collagen. In addition to the core collagen component, different varieties within the portfolio incorporate other active ingredients, including vitamin C, zinc, L-theanine, and probiotics, to deliver targeted nutritional benefits.
Priced accessibly at $20 for packs of 10, the products are packaged in convenient, single-serving powder sachets. The formulation is designed for versatility, easily dissolving in hot water while remaining equally adaptable for iced preparations or mixing with a consumer’s choice of milk.
Addressing a common pain point in the ingestible beauty market, Kim emphasized the brand’s focus on flavor profile and sensory experience. Many consumers remain hesitant to incorporate traditional collagen powders or pills into their daily routines due to unappealing textures or aftertastes.
“A lot of collagen powders or pills on the market are not that enjoyable to consume, they can have a very gamey or fishy aftertaste,” Kim explained. To counter this, Clôud Cafe developed a diverse menu of indulgent flavors that appeal to modern palates. The brand’s current assortment includes Churro Latte, Ube Latte, Royal Milk Tea, Hot Choco Zero, and its reigning top seller, the Strawberry Matcha Latte.
The brand’s distribution strategy has played a crucial role in its rapid ascension. Clôud Cafe first entered Ulta Beauty in March, making history by becoming the very first coffee brand to secure a presence with the prominent beauty retailer. In addition to its partnerships with Ulta and Target, the brand is also retailed at Anthropologie. Bolstered by its upcoming door count expansion, Clôud Cafe is currently on an accelerated growth trajectory, putting the brand on track to comfortably exceed $35 million in retail sales by the close of 2026.
Kim credits major retail partners like Ulta for having the cultural foresight to embrace crossover categories long before they become mainstream. Her history with the retailer dates back to the initial wave of the K-beauty boom, during which she successfully introduced The Crème Shop to its shelves.
“[The Ulta team] is so innovative and open to new ideas, and Korean culture and Korean wellness,” Kim observed, highlighting the synergy between her brand’s ethos and the retailer’s forward-looking merchandising strategy.
As Clôud Cafe continues to scale its physical retail presence, leadership recognizes that establishing direct connections with consumers remains essential for sustaining long-term growth. Alongside retail distribution, the brand is actively ramping up its investments in experiential marketing, focusing heavily on live event activations and targeted product sampling programs.
Looking ahead over the next year, community engagement will serve as a primary pillar of the company’s operational strategy.
“For the next 12 months, our team is focused on doing a lot of community events,” Kim said. Emphasizing the power of trial in winning over skeptical consumers, she added, “We want to have people try our products directly, because as soon as they do, we’ve seen they instantly fall in love with it.”
