[Market Focus] Nuvo Rises on North American Matcha Demand, Highlights Large-Scale Supply Deal with Global Coffee Franchise

Nuvo is showing strong performance. This appears to be influenced by news that the company has signed a large-scale matcha supply contract with a global coffee franchise, amid rising demand for matcha in North America.

As of 9:55 a.m. on September 26, Nuvo was trading at 1,331 won, up 3.42% from the previous day.

Last November, Nuvo signed a three-year supply contract worth 17.8 billion won with a global multinational coffee company. This month, the company secured an additional long-term contract worth 48.2 billion won. This second contract is 2.7 times larger than the first, which is attributed to the growing demand for matcha in the North American market.

The company is building a stable supply chain by expanding its contract farming network and processing capacity, and is directly benefiting from the spread of matcha consumption driven by North American wellness trends.

In the fertilizer division, Nuvo has accelerated its overseas market expansion by signing a long-term supply agreement with Itochu, a major Japanese general trading company. In the first half of this year, exports to Japan reached 2.2 million dollars, a 59% increase compared to the same period last year. The company is also expanding into the Latin American market through testing in Brazil and entry into Mexico and Chile. In the second half of the year, Nuvo plans to secure new customers by participating in major trade fairs in the United States and Indonesia.

Park Changyun, a researcher at GL Research, commented, "Nuvo has established a stable revenue base in the matcha sector through consecutive contracts with global franchises. The coated fertilizer business is also maintaining export growth by expanding into the Japanese and Latin American markets."

He added, "Matcha could become a leading K-food product thanks to the expansion of the North American wellness and alternative caffeine markets, while coated fertilizers are expected to see structural demand growth in line with declining farming populations and eco-friendly agricultural policies."