-- Addition of sales through two new distributors increased the Company's
retail placements by 9% to about 1,300 points of sale in China.
-- Three new products were officially launched to entire distribution
network in July.
-- New production facilities are underway adding 50% additional capacity
by Q4 2008.
SHISHI, China, July 21 /Xinhua-PRNewswire-FirstCall/ -- China Marine Food Group Ltd. (OTC Bulletin Board: CMFO), a China-based manufacturer and distributor of processed and fresh seafood products and snacks, announced today the addition of two new distributors to its sales network covering Shanghai and Guangdong province. The Company has also announced the official launch of three new products to the market following a successful consumer survey and marketing campaign.
After several months of market research conducted in greater Shanghai and Guangdong province, China Marine has entered into distribution agreements with qualified master distributors in each of these territories. Both distributors are well-established food wholesalers and resellers whose sales channels include China’s fast-growing supermarket and convenient store segments. Noteworthy retail points for the new territories include Shanghai Lotus Supermarket Chain Store and Kosmo. Collectively, the new distributors added approximately 100 new points of sale for China Marine products in their respective territories. “Our snack-food product line continues to generate our highest gross profit margin,” Marco Ku, CFO of China Marine confirmed. “Retail distribution of packaged snack foods is the backbone of our revenue and profits. Our Mingxiang(R) brand products are highly recognized in the market and they produce solid revenues for our distributors and their respective customers,” Ku added. China Marine deploys a ‘master distribution’ network model which, the distributors state, “Provides our partners and us the commitment and required protection to invest time and resources to support China Marine products.” “The model also reduces our overhead costs to manage the distribution network as a whole and the process of small orders,” Ku concluded.
China Marine also announced this month the launch of three new Mingxiang(R) products added to the Company’s current 18-product line up. After several months of surveys and direct marketing campaigns conducted with select distributors, their customers and end-users, positive feedback regarding portion size, flavoring and product texture lead to the introduction of barbecued squid, sliced barbecued squid and sliced roasted octopus into the Company’s snack-food product line. Each new product is produced and packaged consistent to the Company’s ISO certification and HACCP food safety standards.
“Sales from new distributors plus the favorable reception of our three new products will push our capacity utilization rate above 90% for our current production lines,” opened Chairman and CEO Pengfei Liu. “To address increased demand, our ongoing facility expansion will help us support organic sales growth from existing distributors and follow-on orders from our two new master distributors.” The first phase of China Marine’s expansion will be the combination of equipment upgrades and the installation of new processing lines. Production capacity will increase by 50% to an aggregate of about 10,000 tons yearly by the fourth quarter of 2008.
About China Marine
China Marine Food Group Ltd. manufactures and distributes processed seafood products, and fresh and frozen marine catch to five provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its "MingXiang(R)" brand as a category leader in 1,300 retail sales points in the PRC. The Company has received "The Famous Brand" and "Green Food" awards. Located in the Fujian Province, it is one of the largest coastal provinces in the PRC and a vital navigation hub between the East China Sea and the South China Sea. The Company is committed to the highest standard of quality control with the ISO9001, ISO14001, HACCP certification and the EU export registration.
FORWARD LOOKING STATEMENTS
This release contains certain "forward-looking statements" relating to the business of China Marine Food Group Limited and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes, expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. China Marine Food Group Limited is under no obligation to (and expressly disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information, future events or otherwise. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
