Chart Update, page-18779

The Daigou channel is one key reason for revenue decline. However, another reason that may be having a longer term impact is the reduced chinese consumer confidence in foreign food. In local chinese media over the last 9 months, there had been consistent discussion risks of covid been imported into china through foreign imported food. E.g imported meat/salmon etc. The chinese culture is highly risk adverse to food safety, in particular, food for young kids. Any implication or risk of covid been be brought in through imported food will be a huge negative...... Having worked in the milk industry, i know this risk is almost zero.....however, facts and perceptions are very different animals.......I am still observing on the bearish side of the fence