China Marine Food Group Ltd. [[CMFO.OB]] , a China-based processor and distributor of seafood-based snack foods and sales of fresh and frozen processed seafood, today announced that the initial success of the Company’s products roll out by a Shanghai-based convenience store chain has led the chain to significantly increase the number of store locations carrying its Mingxiang(R) brand of seafood snacks from 100 to over 500 stores.
Announced in March of this year, the contract between the Shanghai-based convenience store chain and China Marine’s Shanghai-based distributor is gaining momentum. As part of the initial roll out, approximately 100 stores within the chain’s 1200 store network were serviced with a selection of China Marine’s seafood-based snack foods throughout Shanghai and the Jiangsu province. In each store, China Marine’s products were positioned in a prominent location in the snack-food aisle. At some locations, promotional efforts included taste-testing and samples for customers new to China Marine’s Mingxiang(R) brand of products. Each store maintained at least three of China Marine products on display, including barbecued squid, sliced barbecued squid and sliced roasted octopus. On average, stores throughout the chain will be replenished at least twice a month through the Company’s Shanghai distributor. Retail sales of China Marine’s products through this program contributed about 5% of the Company’s total revenues in the first quarter of 2009. Management estimates that sales from the greater Shanghai region could reach approximately 10% of the Company’s total revenues in the 2009 calendar year.
“During April, we experienced a 50% increase in sales volume to the chain as compared to March. The success of our program with this Shanghai-based convenience store chain provides support to growing trends we have seen for healthy snack foods in China which are driving increased consumer demand for high-quality, branded and certified foods,” began Pengfei Liu, CEO and Chairman of China Marine. “The GreenFood(R) certification our products carry is proving to be a new market standard for food safety and quality. Our packaging also includes a direct number to our offices in ShiShi where we can field consumer calls on our products – yet another important component for consumer confidence.”
Beginning in 2009, China Marine expanded its capacity 50% to meet the increased demand for its products and to prepare for opportunities like cooperation with chain stores. Total capacity of the ShiShi facility is now 10,000 tons annually, up from 6,600 tons in 2008. The Company’s marketing and sales efforts are focused on developing similar programs for other retail food chains in the supermarket and convenience store segments.
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 2,000 retail sales points in the PRC. The Company has received “The Famous Brand” and “Green Food” awards. The Company is located in the Fujian Province, 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.
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