Refinitiv Newscasts - BVTV: Chinese soy sauce

Foshan Haitian Flavouring and Food Co

12/10/2022 07:46

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Source: Reuters

Description: Foshan Haitian, the country’s largest producer of cooking's
brown gold, has lost $8 bln in market value since consumers complained its
ingredients are different in Japan. Yawen Chen explains this perceived gap is
bringing Haitian's valuation closer to its Japanese peer.
Short Link: https://refini.tv/3EA4M1Z

Video Transcript:

Never underestimate the power of Chinese netizens. Foshan Haitian Flavouring &
Food, a $46 billion Chinese soy sauce maker, is the latest to learn the lesson
after videos went viral of consumers questioning why its products sold in
Japan have simple ingredients and no preservatives. Some even poured this
domestic product down the drain. Haitian, which has a 20% share of China's
market for cooking’s brown gold, dismissed the accusations as a smear
campaign. It says it complies with relevant food safety rules and stressed
that food additives are common and don’t imply inferior quality.
Investors are unconvinced, wiping off roughly $8 billion, or 15%, of its
market value in less than a week. Even after the selloff, Haitian is still
trading at a mouth-watering price-to-earnings ratio. But its valuation
multiple is now much closer to that fetched by Japanese peer Kikkoman.
Quality, whether real or perceived, has a price