New distribution in Sichuan Area extends Company's distribution network into the fast-growing Southwest region of the country
SHISHI, China, Aug. 12 /PRNewswire-Asia/ -- China Marine Food Group Ltd. (NYSE Amex: CMFO), a processor of seafood-based snack foods and distributor of fresh and frozen marine catch, today announced the Company has secured a new distributor in its targeted growth market, the Sichuan Area.
In March of this year, the China Marine management team and marketing staff attended the Chengdu Food Fair to showcase its products and search for distribution partners in the Sichuan Area, one of the fastest growing areas in the PRC and home to Chongqing, one of the largest cities in the world. After meetings and interviews with distributor prospects, China Marine realized it had to develop new products to meet the taste-preferences of Sichuan. By adding local spices and peppers to four of its most popular seafood-based snack foods, China Marine developed and recently launched four new spicy squid and octopus products. After demonstrating their commitment to the area and potential new partners, a target distributor has been selected to join China Marine's network, which in total now includes 19 exclusive distributors covering seven provinces throughout China.
The new Sichuan Area distributor meets the profile of successful distributors in the Company's network. The distributor has been in food distribution for more than 10 years and maintains stocking facilities, inventory management systems and has trucking to deliver their goods to customers. The distributor also has a substantial base of existing retail points that include supermarkets and convenience stores in each of their respective territories. Dedicated sales teams are a part of the organization in addition to independent representatives and agents which will soon be trained on all of China Marine products by the Company's sales manager for the area.
The distributor has submitted a stocking order of products as a component of becoming an exclusive China Marine distributor. This stocking order includes new products developed for the territory plus a selection of China Marine's other top selling products. While the Company estimates that the revenues of the distributor will increase gradually for the balance of the year, it expects a significant increase in 2010.
"After careful review and completing extensive due diligence on our distributor prospects, we are confident to have a selected good, long-term partner for the region. We were also pleased to see the number of prospects who wanted to work with us making the final decision tough," stated Pengfei Liu, Chairman and CEO of China Marine. "Our entrance into Sichuan marks an important milestone for our Company as we expand into the interior of the country, a new frontier from the coastal provinces currently served. The combination of population growth and the speed at which retail food chains are growing in the area put the Sichuan Area as our number one target market for the year. There are two major cities in the Sichuan Area, Chengdu and Chongqing, which have a combined population of approximately 44 million and we are pleased to have secured dedicated distribution in each." Liu closed.
About China Marine
China Marine Food Group Ltd. processes and distributes seafood-based snack foods, and fresh and frozen marine catch to seven provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its "Mingxiang(R)" brand as a category leader in 2,200 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 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 further information, please contact:
COMPANY
Marco Hon Wai Ku, CFO
Address: 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
HC International, Inc.
John Mattio, SVP
Address: 56 June Road, North Salem, NY
Tel: +1-914-669-5340 (U.S.)
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net
