HanWool&Jeju (Jeju Beer Company), the first craft beer company to debut on the domestic stock market, is drawing attention over whether it will move to restore profitability on the back of the Jensen Huang, Nvidia chief executive officer (CEO), effect. Jeju Beer Company became a hot topic as the draft beer that Jensen Huang, Samsung Electronics Chairman Lee Jae-yong, and Hyundai Motor Group Chairman Chung Eui-sun drank during their recent "chimaek (chicken+beer) get-together."
According to related industries on the 13th, Jeju Beer Company recently used the meeting between Huang and the conglomerate heads to promote its products. It posted a photo of Huang holding a branded glass on its official social media and added keywords such as "the beer chosen by the artificial intelligence (AI) kkanbu," "what surprised Jensen Huang was not AI but ALE," and "more thrilling carbonation than a graphics card."
Earlier, Huang and the conglomerate heads gathered at Kkanbu Chicken Samsung branch in Gangnam-gu, Seoul, on the 30th to enjoy chimaek. The first draft beer Chairman Lee Jae-yong ordered then was Jeju Beer Company's "Jeju Wit Ale." The three clinked glasses dedicated to Jeju Wit Ale for a toast and were seen taking big sips.
With sluggish results continuing for years, the company appears hopeful that Jeju Beer Company will enjoy a boom like franchise brands such as Kkanbu Chicken. After Huang's visit, Kkanbu Chicken saw an explosive surge in interest and inquiries and halted new franchise consultations, while launching the dishes Huang and the conglomerate heads ate as an official set menu called "AI Kkanbu."
Jeju Beer Company was listed on the KOSDAQ in May 2021, the first among craft beer makers. After listing, operating losses continued and the owner changed twice. Following automotive repair company DoubleHM in 2023, HanWool Semiconductor acquired equity last year to become the largest shareholder.
Although Jeju Beer Company's annual operating losses are narrowing, it is still in the red. Last year's annual loss was about 4.8 billion won. It declined sequentially from 11.6 billion won in 2022 to 10.4 billion won in 2023. The cumulative loss for the first half of this year is about 2 billion won, and third-quarter results have not yet been released.
It remains uncertain whether this Jensen Huang effect will lead to future performance improvement. However, the stock price has been surging day after day. The stock, which had stayed in the 1,800-won range at the end of last month, closed at 2,250 won the previous day, up about 25%. During this period, market capitalization increased by 7 billion won, from 28.2 billion won to 35.2 billion won. The transaction value also rose from around 100 million won to about 1.1 billion won on the 11th.
Jeju Beer Company plans to pursue a recovery in profitability not only through its core craft beer production business but also via investments in new businesses. Still, there have been no clear results yet. The company acquired part of the equity in OLGOT, a frozen kimbap seller, in July last year and early this year. It then bought equity in the venture capital firm KIB Ventures in April and, through a subsidiary in September, also acquired equity in real estate investment company STAR SM REIT.