The path to the Japanese market began when Lykke Coffee Farms participated in the Foodex trade show in Tokyo. At the fair, the company's CEO, Johan Damgaard, met entrepreneur Norris Scott, founder of the energy bar company Powbar.
The two found a common vision for sustainability and business models, leading to a collaboration in April. This partnership has now resulted in the company's coffee being sold in a thousand Japanese stores.
Following participation in the trade show, interest from Asian players has increased. The company has received invitations from South Korea and Taiwan to present its products.
The potential is gigantic and I got a taste for it, says Johan Damgaard to the website.
New model for expansion
To manage the production rate, the company uses a model where international partners own local production, but the coffee is sourced from the farms the company collaborates with.
Each product sold in new markets generates revenue that goes back to the coffee farmers in the countries of origin.
In addition to the Asian market, there are plans to launch in several countries within the EU next year.
Turning to profit
In 2025, Lykke Coffee Farms generated SEK 65.5 million in revenue, an increase of 18 percent compared to the previous year.
Operating profit landed at SEK 2.7 million, compared to a loss of SEK 600,000 the year before.
Current-year revenue is on track to reach SEK 80 million.
In the long run, Japan could become bigger than Sweden and then there is no limit, says Johan Damgaard.
The company's e-commerce handles both the Swedish and international markets, while the company also operates two physical stores: one in Stockholm and one in Helsinki.