Shinsegae Group's corporate venture capital (CVC) Signite announced on the 11th that it has made a Pre-A investment in the food tech startup Wake, which operates the domestic alternative coffee brand 'SANS'.
SANS is the first domestic alternative coffee brand that replicates the taste and aroma of coffee without using coffee beans. It developed an alternative coffee similar to Americano by combining 12 ingredients such as date seeds, chicory roots, and barley, which can be easily cultivated indoors regardless of climate change. It operates the only specialized alternative coffee store in the world.
Signite noted that as interest in coffee alternatives grows due to climate change and health concerns, the global alternative coffee market is showing steady growth. It determined to invest this time as SANS has the product strength, technological capability, and brand concept to compete in overseas markets, indicating high growth potential.
According to a recent report published by the market research firm Meticulous Research, the global alternative coffee market is expected to grow from $16.21 billion (approximately 22.27 trillion won) this year to $24.05 billion (approximately 33.375 trillion won) by 2032, with an average annual growth rate of 5.8%.
The investment will be used for the expansion of SANS's offline distribution networks and additional research and development, as well as the fund for entering overseas markets such as the United States.
Kim Joo-young, the chief investment officer of Signite, said, "We are paying attention to companies that are innovating the market through technology, such as alternative coffee and lab-grown diamonds," and noted, "We plan to continue discovering and investing in promising domestic and international startups while actively creating an environment where large corporations and startups can achieve synergy."