[Special Stock] Hankook McNulty, Half of the World's Coffee Growing Areas Disappear... Strong Competitive Edge in Coffee Beans

[Asia Economy Reporter Park Hyungsoo] The stock price of Hankook McNulty is soaring. As grain prices surge, related stocks have been showing strong performance day after day, and interest in Hankook McNulty, a coffee bean company, seems to be growing. Due to abnormal weather conditions in major coffee bean producing regions such as Brazil, Ethiopia, and Vietnam, production has been disrupted, causing coffee bean prices to rise significantly.

As of 9:47 AM on the 20th, Hankook McNulty is trading at 10,150 KRW, up 24.54% from the previous day.

Coffee is known to be a crop that grows optimally at 15~20℃. It is highly sensitive to high temperatures, making it vulnerable to climate change. Research shows that coffee is the most affected by climate change, and coffee cultivation areas could decrease by up to 50% by 2050.

Professor Roman Gr?ter and his research team at Zurich University of Applied Sciences in Switzerland predicted in a report published in the scientific journal PLOS ONE last January that "considering climate change scenarios, suitable coffee cultivation areas will sharply decrease by 2050." The team analyzed that "major coffee-producing countries such as Brazil, Vietnam, Indonesia, and Colombia will all be severely affected by climate change, leading to a significant reduction in coffee cultivation areas."

Brazil, which produces more than 30% of the world's coffee beans, is suffering from the worst drought in 100 years. In July last year, temperatures suddenly dropped below freezing, causing heavy snowfall. Due to abnormal weather, coffee and other crops withered and froze to death. Brazil's coffee production last year decreased by 22% compared to the previous year. Since coffee trees take 3 to 5 years to bear fruit, it is expected to take considerable time to recover from the damage.

Hankook McNulty is engaged in the entire coffee-related business, from green coffee beans to processed coffee products. Their products are broadly categorized into four types: green coffee beans, which are unprocessed coffee beans freshly harvested; roasted coffee beans produced through the roasting process; instant coffee manufactured by freeze-drying (FD) processed roasted coffee beans; and coffee beverages made from liquid extracts of roasted coffee beans.

Hankook McNulty has secured facilities capable of producing all coffee-related products, enabling immediate response to market changes. They have a full lineup of products ranging from green coffee beans and roasted beans to popular consumer items such as tea bag products, instant coffee, and RTD (Ready-To-Drink) products favored in convenience stores.

Unusually for a small and medium-sized enterprise, Hankook McNulty has established a distribution network that supplies products to large retail channels, supermarkets, convenience stores, and online platforms. It is understood that Hankook McNulty is the only company that has built both a product lineup and a distribution network. The company has independently entered large discount marts, which are typically difficult for SMEs to access, supplying a variety of products. By expanding the number of stores carrying their products, they have secured a solid competitive advantage over other companies.