Chinese beverage giant Nongfu Spring saw both its stock and sales tumble after nationalist Chinese internet users initiated a widespread boycott of the brand’s products, reports Caixin. The Hangzhou-based drinks-maker, known for its eponymous bottled water, was thrust into a firestorm of online anger that began on Feb. 28, after its billionaire founder Zhong Shanshan attended the memorial service of Zong Qinghou, founder of rival Hangzhou Wahaha Group, who died last month.
The move sparked a sudden backlash from netizens, who accused Zhong, China’s richest man, of being ungrateful to Zong and undermining him in their past business dealings. They went on to criticize the “Japanese-style elements” on the packaging of Nongfu Spring’s tea beverages.
The company’s Hong Kong-listed shares fell into a decline that tracked the online barrage, losing 5.4% from Feb. 29 to Monday, the equivalent of about HK$27 billion ($3.45 billion), and making it one of the worst performers on the Hang Seng China Enterprises Index. Nongfu Spring’s shares pared some losses on Tuesday, closing up 1.4% at HK$42.6.