Expands market for its Meals Ready to Eat (MRE) convenience store products in Beijing
JUNAN COUNTY, China, Oct. 1 /PRNewswire-Asia-FirstCall/ -- American Lorain Corporation (NYSE Amex: ALN) ("American Lorain" or the "Company"), an international processed foods company based in Shandong Province, People's Republic of China ("PRC"), today announced that it has made further improvements to its "Meals Ready to Eat" (MRE) products based on feedback collected from its market testing and has made breakthrough progress in its marketing strategies that includes a strategic alliance with a major convenience store chain in Beijing. American Lorain and Beijing K.P.I. Hi-24 Convenience Stores Co., Ltd. have entered into an agreement on strategic cooperation for development of the MRE products. The Company expects potential revenue from the agreement with KPI Hi-24 could reach $1.5 million (10 million RMB) in 2010, based upon the results of market testing.
"We're both confident of our products' enormous potential, based on the results of our market testing; and, we anticipate capturing more market share in the convenience store segment," said Mr. Si Chen, chief executive officer of American Lorain Corporation. "Through our cooperation with K.P.I., Lorain will make full use of the Hi-24's convenience store channels to expand the market and realize growth synergies while ensuring stable supply and the highest product quality."
Apart from the cooperation with Hi-24, American Lorain has made further progress in expanding its MRE product line into other supermarkets and convenience stores. MRE products are now available in about 40 supermarkets and convenience stores in and around Beijing. In the fourth quarter, the number is projected to increase to about 620; and, in 2010, the number is projected to reach approximately 1,200.
About Beijing K.P.I. Hi-24 Convenience Stores Company
Beijing K.P.I. Hi-24 Convenience Stores Co., Ltd., owned by K.P.I Company Limited, which has been listed on the main board of Stock Exchange of Hong Kong (HKSE: 605) since 1993, is a specialized company that runs convenience stores. From 1997, KPI started stepping into the market by investing in famed retail stores in China. Hi-24 has a very good reputation in the Beijing Convenience Store market. They are also the first retail company that focuses on professional, chain convenience store system research. Hi-24 currently runs 164 stores directly, which are located in and around Beijing. According to their strategic plan, Hi-24 will have approximately 300 stores by 2010.
About American Lorain Corporation
American Lorain Corporation is a Delaware corporation that develops, manufactures and sells various food products. The Company's products include chestnut products; convenience foods products (including ready-to-cook foods, ready-to-eat foods, and meals-ready-to-eat); and frozen, canned and bulk foods products. The Company currently sells over 234 products to 26 provinces and administrative regions in China as well as to 42 foreign countries. The Company operates through its four direct and indirect subsidiaries and one leased factory located in China. For more information about American Lorain, please visit our website at http://www.americanlorain.com .
Forward-Looking Statements
Statements contained herein that relate to the Company's future performance, including statements with respect to forecasted revenues, margins, cash generation and capital expenditures are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance or achievements to differ materially from those anticipated. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions, particularly the current downturn in the worldwide economy; our ability to obtain adequate supplies of raw materials; our ability to manage our expansion strategy; changes in foreign currency exchange rates; government regulation; difficulties in new product development; changing consumer tastes in disparate markets worldwide and our ability to address those changes; our ability to attract and retain highly qualified personnel; and other factors affecting our operations that are set forth in our Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward- looking statements, whether as a result of new information, future events or otherwise.
For more information, please contact:
At the Company:
American Lorain Corp
Mr. Alan Jin, CFO
Phone: +86-21-6145-3891
Email: alanjin@americanlorain.com
Web: http://www.americanlorain.com
Investor Relations:
RedChip Companies, Inc.
Dave Gentry
(800) 733-2447, Ext. 104
info@redchip.com
