Ocado shares fall amid consumer concern about spiralling inflation

Shares in Ocado were down 9.3 per cent to 831p; shares in Else Nutrition were down 7.9 per cent to CAD$0.93 and shares in Aker Bioamarine were down 11.2 per cent to NOK47.95.

Shares in Ocado were down 9.3 per cent to 831p in the week ending June 17, according to the Future Food Finance FoodTech Index.

Concerns that spiralling inflation is undermining consumer confidence have been hitting London-listed retailers, including Ocado, which on June 14 was the FTSE’s biggest faller, plunging 95.5p to 784.4p.

The fall in Ocado’s shares also comes as investors question tech players investing heavily in tech at the expense of profitably.

Ocado has reported a pre-tax profit just three times in its 22 years of existence, with the last time being 2016.

Its shares have been on a downward trajectory since August last year, when they reached a year peak of 2,034p.

Elsewhere this week, shares in Israel-headquartered Else Nutrition were down 7.9 per cent to CAD$0.93 in the week it announced the launch of its infant and child nutrition products into Canada, following two years of “solid growth” in the US.

“Entering Canada enables us to reach new markets in a country seeing unprecedented adoption of plant-based diets,” the company said.

Last month, Else launched its first cereal product for babies in the US.

The Canadian baby food market is expected to reach $2.4bn by 2026, according to Else, with few plant-based alternatives.

“Our data has already shown strong interest from Canadian consumers both online and brick-and-mortar, and we anticipate a favourable response from Canadian families,” Else said.

“Given the ongoing challenges within the baby food supply chain, it has become critical for Else to enter the Canadian market right now, with a strategic plan to help Canadian parents provide healthy, Clean Label nutrition to their children.”

Finally, shares in Norwegian biotech firm Aker Biomarine were down 11.2 per cent to NOK47.95, in the week it got the green light from US regulators for its krill products.