1200 Store Chain Significantly Expands CMFO's Sales Footprint in One of
China's Most Robust Markets
SHISHI, China, March 4 /PRNewswire-Asia-FirstCall/ -- China Marine Food Group Ltd. (OTC Bulletin Board: CMFO), a China-based processor and distributor of seafood-based snack foods and fresh and processed seafood, today announced the Company has won a contract to service a large convenient store chain in Greater Shanghai through its local distributor.
The convenient store chain maintains a network of more than 1200 stores throughout Shanghai. Each store carries a variety of snack foods, fresh and frozen foods, beverages and other convenient-type products. China Marine has begun shipping its proprietary Mingxiang(R) brand seafood-based snack foods to the retailer and secured prominent shelf positioning. China Marine's products will be placed on the end cap of the snack food isle and sales will be supported by various promotional activities planned as part of the product launch. The chain will initially feature several popular China Maine products in high traffic pilot locations. After a successful introduction and satisfactory customer uptake to the retailer, the complete integration of China Marine's products to all of the chain's 1200 plus stores is expected planned with a full product roll-out.
The contract was negotiated and secured in coordination with the Company's Shanghai-based distributor. The distributor will be responsible for the shipment, invoicing and point of sale maintenance for the contract year. From a corporate level, China Marine supports its exclusive distributors and leverages their knowledge and relationships in each local market to drive sales and best manage customer service and logistics. "This has always been our policy, and our strength," stated Chairman Pengfei Liu, "After the opportunity was initially presented to us by our Shanghai distributor, we worked as a team to consummate this contract. We envision a successful launch and a long-term relationship with this new partner and congratulate our Shanghai distributor on closing this important agreement", Liu added.
Assuming a full roll-out to all stores, the additional capacity necessary to service this agreement can be met by The Company's current facility. In January of this year, the Company updated investors on its capacity expansion which came on-line in January of 2009. Through a combination of new processing equipment, modification of old processing machines and additional space added at the new facility, China Marine grew its annual capacity from 6,600 tons to 10,000 tons.
"Convenient stores and other food retail establishments represent the primary growth drivers for our Company," continued Liu. "Consistent with the sectors that are growing in China, consumer staples and food continue to be in high demand. This, combined with further expansion of retail food locations throughout China will provide us a steady stream of sales opportunities throughout the year." Liu concluded.
About China Marine
China Marine Food Group Ltd. processes and distributes seafood-based snack foods, and fresh and frozen marine catch to six provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its "Mingxiang" brand as a category leader in 1,400 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.
For more information, please contact:
Company Contact:
Marco Hon Wai KU, CFO
Suite 815, 8th Floor
Ocean Centre, Harbour City
Kowloon, HONG KONG
Tel: +852-2111-8768
Email: marco.ku@china-marine.cn
Web: http://www.china-marine.cn
Investor Relations Contact
John MATTIO, SVP
HC International, Inc.
56 June Road, North Salem NY
Tel: +1-914-669-5340 (U.S.)
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
