China Investment Advisor: Plasticizer Event Affects Mainland Drink Market

Since April, many well-known sports beverages and juice drinks in Taiwan have been found to contain “plasticizers” for carcinogenic substances. This storm has intensified. According to Taiwan's health department statistics, as of May 30, there were more than 500 kinds of products contaminated by Taiwan, and nearly 1,000 companies were implicated.

In comparison, Taiwan recognized the importance of food safety earlier. It was the first region in the world to implement a traceability system for processed foods, and it had published the "Food Hygiene Management Law" as early as 1975. Under various laws and regulations and the efforts of all parties, Taiwan has established a relatively complete food safety standard and food safety management system, and its food enjoys praise in the world.

Zhou Sianran, a food industry researcher at China Investment Advisors, pointed out that the plasticizer storm not only hit Taiwan's food industry, especially the beverage industry, but also caused panic among Taiwanese consumers and even the world’s consumers, causing serious damage to Taiwan’s food manufacturing industry. It is damaging the image of Taiwan's food in the international market, causing Taiwan to be dishonored and inevitably affecting its food exports. It should be noted that although measures such as the recall of problem products and the punitive actions of black-hearted enterprises can alleviate such damage in the short term, such damage will exist for a long time.

Plasticizer storms also spread to the mainland market. At the moment of the peak season for beverage sales, many consumers have a mistrust of beverages. They have chosen to use juice or drinking water instead, and beverage sales have been affected to a certain extent. At the same time, various emergency measures of related departments have also been introduced, such as the prohibition of catering service providers from purchasing and using foods and food additives produced by companies in the “Suspended Imports of Taiwanese Food and Food Additives Manufacturing Companies” list; the Ministry of Health will urgently use plasticizers. Including blacklist of illegal additives.

In addition, many beverage companies in the Mainland market have also made clear relations with plasticizers in Taiwan. Both of them ensure that their products do not contain plasticizers. This has eased the panic among consumers in the Mainland to a certain extent, but the plasticizers have also been controversial. Still inevitably affecting these companies, especially Taiwanese companies in China, will have a certain impact on overall sales. Of course, consumers are trying their best to avoid buying the drinks produced by Taiwanese companies or they will bring certain business opportunities to non-Taiwanese companies.