Clover Corporations (ASX: CLV) is down 2% today, on the back of the coronavirus epidemic. Newly recorded cases around the world sends panic amongst investors and this has resulted in a global sell-off. Clover Corporations is one example, whose share price has fallen drastically, but their products are still desired by families, children, and adults.
Clover Corporations is an Australian company that distributes Omega 3 and Omega 6 through infant formulas and tuna oil encapsulations pills. Omega 3 has proven to help with brain development, cardiovascular health, and visual acuity. Omega 3 or their tuna oil is delivered by their patented microencapsulation technology whereby the tuna oils are converted into a stable dry powder form. The dry powder form protects the ingredients from oxidation. The technology has given them a natural competitive advantage over other rivals by allowing them to extend the shelve life of their products. This is critical for the business because it allows consumers to store the product over a long period of time, without having to worry about when to purchase the Omega 3 products again.
Additionally, the microencapsulation technology allows them to increase the dosage of DHA Omega 3. This is significant for the company because new regulations in Europe and China has demanded that the requirements of Omega 3 DHA dosage to be higher. Overall, the company has enjoyed success through the increasing demand for baby formulas in Asia, the EU, and the US market. The company has recently entered a partnership in Melody Dairies which would increase the milk drying capacity and therefore meet the consistent demand for Clover Corp’s products.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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