Xiaomi, the leading smartphone company in China, announced on the 28th that it will release its first electric vehicle (EV) on the same day. The price of the new car starts from 590,000 yuan (about 4.5 million yen) for the standard model, aiming to compete against Tesla in the EV market and become a top player in the future.

$Kobayashi Pharmaceutical (4967.JP)$The issue of health damage to consumers who ingested supplements made from "red koji" raw materials manufactured by the company is escalating, and the company todayis planning to hold another press conference on the 29th.Since the problem was discovered, the company's stock price has fallen by about 20% including the lower limit price halt.投資家は過度に楽観視することはできないThe content of the press conference will not only affect the future stock price, but also the future of the company.This is also anticipated.
Therefore, referring to examples of three listed companies in the past that had food-related issues, we will consider the possible scenarios for Kobayashi Pharmaceutical's stock price after the press conference.

Reference case 1: Former J.T. Foods　Due to delays in response, the stock price of the parent company drops, but the possibility that the company is not the cause increases and the stock price recovers.
January 2008, $Japan Tobacco (2914.JP)$(JT) revealed that consumers (10 patients) who had eaten frozen dumplings imported and sold by its subsidiary, the former J.T. Foods, developed symptoms of poisoning. Criticisms were raised about the delay from the occurrence of the incident to the announcement, as well as complaints of strange odors being overlooked. While the food business is not the main business of JT, the stock price dropped by 5.0% in 3 business days since the issue was reported.However, later on, the belief that the cause was from a Chinese manufacturing company strengthened.Done.
However, afterwards, the view that chinese manufacturers are the cause has become stronger.The stock price quickly rebounded.Two years after the incident, it was revealed that pesticides had been deliberately injected into the factory of the Chinese company that was manufacturing. The culprit was arrested and received a life sentence.
JT's stock price recovered quickly, but continues to be affected by the incident.
Before the incident came to light, JT had agreed to integrate the frozen food business of three companies, including the former Kato Yoshi, with Nissin Foods (current Nissin Foods). $Nissin Foods Holdings (2897.JP)$JT had been implementing a tender offer and subsidiaryization assuming the transfer of 49% of Kato Yoshi's shares to Nissin Foods, but the integration was dissolved by Nissin Foods due to the incident. JT ended up acquiring Kato Yoshi alone and merged with the former JT Foods, which was liquidated in 2014.
Furthermore, on March 28th, ten years after the incident came to light, the Nihon Keizai Shimbun reported, "Doubts among Japanese consumers regarding Chinese-made food products remain strong, and it is uncertain whether the demand for frozen foods relying on Chinese products will return to pre-incident levels."Due to the lack of clear measures to prevent recurrence, the impact of the incident has continued for over two years.Formed into a longer-lasting shape due to the clear prevention measures not being introduced.

Reference Case 2: Fujiya　Stock prices rebound with early response, root cause analysis, and the dissemination of measures to prevent recurrence
January 2007, $Fujiya (2211.JP)$It was reported that expired milk was used in the cream puffs produced by Fujiya. The company held a press conference the day after the report to apologize. Four days later, after the weekend, the company published the results of the internal investigation, and the president announced resignation.スピード対応を行った。株価は報道前日と比べて18.6％下落していたが、株価はここで底打ちDone.
前社長の辞意表明から1週間後には新社長が記者会見し、外部委員会からなる改革組織を発足させるなどの再発防止策を打ち出した。さらに、製パン大手の $Yamazaki Baking (2212.JP)$toThe decision to receive support in hygiene management and financial aspects has also been made.。As the specific realization of receiving investment from Yamazaki Pan materializes, the stock price exceeded the level before the report, and about two months after the report, it rose by 60.0% from the lowest closing price.。
Due to this matter, Fujiya became an equity method affiliate of Yamazaki Pan, and became a subsidiary in November 2008.