Chinese Food Giant Loses Nearly $3 billion in One Day, Consumers Becoming Distrustful

On October 27, Haitian Flavor Industry published a three-quarter report. Both revenue and net profit attributable to the company had fallen, and this was the worst performance in the company’s history over the same period.

As soon as the quarterly report came out, the company’s stock price plummeted by 6.17%. The market value evaporated by nearly $3 billion in one day.

On October 10, Haitian Flavor’s share price fell more than 8% at the opening. The company’s market value evaporated by nearly $5 billion compared with the previous trading day.

A month ago, Haitian Flavor Industry fell into a crisis as Chinese consumers and netizens felt indignant about additives in the company’s soy sauce products.

However, Haitian is clear in the seasoning table of products sold abroad, containing  only natural substances such as soybeans, water, and salt. This led to distrust in local products, and. netizens collectively boycotted Haitian products.

Food additives have long been part of the food industry, but due to a lack of information people only see the consequences of excess and abuse, and have become wary of many products. 

Chinese food giant loses $20 billion in one day, consumers becoming distrustful

On October 27, Haitian Flavor Industry published a three-quarter report. Both revenue and net profit attributable to the company had fallen, and this was the worst performance in the company’s history over the same period.

As soon as the quarterly report came out, the company’s stock price plummeted by 6.17%. The market value evaporated by nearly $20 billion in one day.

On October 10, Haitian Flavor’s share price fell more than 8% at the opening. The company’s market value evaporated by nearly $36 billion compared with the previous trading day.

A month ago, Haitian Flavor Industry fell into a crisis as Chinese consumers and netizens felt indignant about additives in the company’s soy sauce products.

However, Haitian is clear in the seasoning table of products sold abroad, containing  only natural substances such as soybeans, water, and salt. This led to distrust in local products, and netizens collectively boycotted Haitian products.

Food additives have long been part of the food industry, but due to a lack of information people only see the consequences of excess and abuse, and have become wary of many products. (Source: thebl.com)

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