News that vitamin company Blackmores is having trouble convincing Chinese customers of the quality of its infant formula product has sent the company’s share price tumbling.
The stock, which has been a market darling after explosive growth in its share price last year, culminating in a high of $220.90 in January, was down almost 5% in trade today, changing hands at just over $151 dollars a short time ago.
One of the major catalysts for Blackmores’ rally was its announcement that it was getting into the infant formula category, for which there is huge demand in China. However, it has been struggling to build sales, and there have also been concerns about the impact of a tightening of restrictions on online sales by authorities in Beijing.
According to reports today Blackmores, along with Murray Goulburn, has only collared 0.1% of the market and the agent buyers who send online purchases back to China for their customers are reporting little interest from their customers in the Blackmores product.