The functional beverage game has a fast-growing, Korean-inspired emergent.
Launched in late 2024 by Olive Kim with an assortment of collagen-infused coffees and teas, Clöud Cafe is gearing up to expand its footprint at Ulta Beauty and Target, both of which it entered for the first time this year, to more than 2,000 collective doors in November.
For Kim, whose family launched The Crème Shop as a Los Angeles manufacturing business in the ’80s — which she then turned into a K-beauty product line that was acquired by LG H&H in 2022 — Clöud Cafe looks to combine Korean wellness culture with inspiration from the country’s trendy 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 and, after exiting The Crème Shop, 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?”
A serving of any Clöud Cafe drink features 1,000 milligrams of marine collagen, while different varieties also tap other actives including vitamin C, zinc, L-theanine and probiotics to support inner-outer well-being. Priced at $20 for packs of 10, the drinks come in single-serving powder sachets that are meant to be dissolved with hot water and can be served iced and/or with a choice of milk.
The Clöud Cafe assortment.
“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,” said Kim, whose flavors include Churro Latte, Ube Latte, Royal Milk Tea, Hot Choco Zero and Strawberry Matcha Latte, the brand’s top seller.
Clöud Cafe first entered Ulta in March, becoming the first coffee brand to enter the retailer. The brand also sells at Anthropologie and, with its expanded door count, is on track to exceed $35 million in retail sales in 2026.
“[The Ulta team] is so innovative and open to new ideas, and Korean culture and Korean wellness,” said Kim, who previously launched The Crème Shop at Ulta during the first wave of K-beauty.
The brand’s retail presence is key to growth, as are increased investments in eventing and sampling.
“For the next 12 months, our team is focused on doing a lot of community events,” Kim said. “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.”
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