JUNAN COUNTY, China, June 2 /PRNewswire-Asia/ -- American Lorain Corporation (OTC Bulletin Board: ALRC) ("American Lorain" or the "Company"), an international processed foods company based in Shandong Province, People's Republic of China ("PRC"), today announced that as of the end of May 2009, the Company now has a total of 300 agents in 26 provinces in China.
In the five months since American Lorain began transitioning sales away from its direct sales force to agents, the Company has expanded its distribution network from 19 provinces to 26 and further strengthened its brand awareness in the covered regions. Using agents also has the added benefit of improving the Company's cash flow management, as agents generally do not pay on credit. As of end of May 2009, the Company has signed 300 agents, which together reach more than 2,000 supermarkets. Of the 2,000 plus supermarkets, more than 130 are large-scale supermarkets, and approximately 1,900 are medium and small-sized supermarkets. The new distribution channels also include international stores, such as 25 Wal-Mart stores and 24 Carrefour stores.
"We are extremely pleased with our progress of expanding our cooperation with sales agents," said Mr. Si Chen, Chairman and CEO of American Lorain. "Transferring direct sales to agents will not only reach a larger consumer base at a lower cost, but more importantly, will reduce our accounts receivable burden and increase cash flow to help us develop products with higher margins. The wider distribution network will also serve as the foundation for our commercial campaign, which we plan to launch this summer."
About American Lorain Corporation
American Lorain Corporation ("American Lorain" or the "Company") 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". 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:
American Lorain Corp
Mr. Alan Jin, CFO
Phone: +86-21-6145-3891
Email: alanjin@americanlorain.com
Web: http://www.americanlorain.com
CCG Investor Relations
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Email: crocker.coulson@ccgir.com
Ms. Linda Salo, Financial Writer
Phone: +1-646-922-0894
Email: Linda.salo@ccgir.com
Web: http://www.ccgirasia.com
