American Lorain Introduces Long-Shelf Life 'Cold-Dish' Product Line to Chinese Market

Nitrogen-based technology will extend shelf life of products to 20 days

Jan 28, 2010, 08:00 ET from American Lorain Corporation

JUNAN COUNTY, China, Jan. 28 /PRNewswire-Asia-FirstCall/ -- American Lorain Corporation (NYSE Amex: ALN) ("American Lorain" or the "Company"), an international processed snack foods, convenience foods, fresh and frozen food company based in the Shandong Province, today announced that it has launched an upgraded "cold-dish" product line with extended shelf life for food retail counters.

"Cold dishes" are a category of Lorain's ready-to-eat product line which includes tofu, vegetable salads, and kimchi, amongst other such products. American Lorain launched its cold-dish product line in 2009 under which it manufactures more than 10 varieties of cold-dish meals branded with Lorain(R). According to a survey done by The Chinese Nutrition Society in 2009, cold-dish foods were selected nearly two to one over more traditional stir fry foods. Approximately 6.1% of participants in the study chose cold dishes, while only 3.3% chose stir-fry.

Due to cold-dish's naturally short shelf life and consumer preference for fresh foods, cold-dish manufacturers are almost entirely domestic and normally located in close proximity to their markets. From its extensive experience in the convenience and ready-to-eat food market segments in China, American Lorain ("ALN") has introduced to the market a new range of cold-dish products using nitrogen technology that extends the shelf-life to 20 days, from its previous interval of 5 days. Based on its market feedback and independent surveying, the Company also believes that consumers detect no difference in taste between Lorain's new 20-day shelf life products. The extended shelf life of the products also enables American Lorain to transport its goods to a wider distribution radius.

To help advertise its new cold-dish products, the company hired a well-known Taiwanese movie star, Alec Su, to be the spokesperson for a nationwide television advertising campaign of its cold-dish products. The Company has also engaged a leading marketing company to redesign the product packaging. The Company is now actively placing its Lorain(R) branded cold-dish products on counters in the Company's extensive supermarket and food retail network throughout China. American Lorain plans to expand its retail footprint to 1200 branded cold dish counters in China in 2010, a 6 times increase in retail locations based on its current 170 in-store counters in Guangdong and Shandong areas. Preliminary sales estimates of the new products are expected to be $14.7 million in 2010.

"We are very excited about the market opportunities for our new cold-dish product segment," began Chairman and CEO of American Lorain, Mr. Si Chen. "We have identified the convenience and ready-to-eat food markets in China as our fastest growing segment and have built a product development, marketing and sales strategy around this category. Food safety and freshness are top priorities for our customer base and their consumers. The expertise we have garnered in nitrogen techniques deployed in our fresh and frozen foods segment have allowed us to develop methods to extend shelf-life of cold-dishes, the primary factor that limits the distance cold-dishes can be distributed", Chen concluded.

About American Lorain Corporation

American Lorain Corporation is a Nevada corporation that develops, manufactures and sells various food products. The Company's products include chestnut products, convenience food products and frozen, canned and bulk food 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 further information about American Lorain Corporation, please visit the Company's 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 Corporation
     Alan Jin, CFO
     Tel:   +86-539-731-7959
     Email: alanjin@americanlorain.com
     Web:   http://www.americanlorain.com

    Investor Relations:
     John Mattio, SVP
     HC International, New York
     Tel:   +1-203-616-5144
     Email: john.mattio@hcinternational.net
     Web:   http://www.hcinternational.net

SOURCE American Lorain Corporation



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