[Featured Stock] Will Export Restrictions on Mix Coffee 'Maxim' Be Lifted? 'Dongseo' Hits Upper Limit

Dongseo, which holds a 50% stake in Dongseo Food, the maker of the leading domestic mix coffee brand "Maxim," hit the daily price limit on the stock market on the 22nd.

As of 1:50 PM that day, Dongseo's stock price was 25,300 won, up 29.94% from the previous day's closing price. The price started rising early in the session and significantly increased its gains after noon.

The market appears to be reacting to the export potential of Maxim mix coffee, one of Dongseo Food's main products. The previous day, MarketWatch reported that Germany's JAB Holding Company decided to acquire an additional 17.6% stake in JDE Peet's, the world's second-largest coffee company owned by the U.S. company Mondelez.

Mondelez holds a 50% stake in Dongseo Food together with Dongseo through its Singapore subsidiary (Mondelez Holdings Singapore). Expectations have arisen that the export restrictions on "Maxim" will be lifted as Mondelez sells off all its shares in the coffee subsidiary. It is known that there had been export limitations on coffee mix products due to conflicts of interest with JDE Peet's.

With this share sale, Mondelez's coffee business will be limited to Dongseo Food only. However, according to a Dongseo Food official, there is no change in the joint venture relationship between Dongseo Food and Mondelez.