SHISHI, China, Oct. 20 /PRNewswire-Asia-FirstCall/ -- China Marine Food Group Limited (NYSE Amex: CMFO) ("China Marine" or the "Company"), a China-based manufacturer of Mingxiang(R) seafood-based snack foods, "Hi-Power" marine algae-based beverages, and distributor of frozen marine catch, today announced $2.0 million of Hi-Power beverage sales for the month ended September 30, 2010.
Hi-Power sales in September were driven primarily by re-orders from distributors and retail expansion. In each 'restocking order in September, the Company also provided a promotional 246ml or 960ml can of Hi-Power for every three cans purchased. Currently, China Marine does not have cooperative marketing agreements or rebates with Hi-Power distributors or their respective retail customers. Marketing and advertising costs have been borne almost entirely by the each individual Hi-Power beverage distributor. To continue expanding sales into new locations and demonstrate manufacturer support, China Marine offered distributors promotional cans of Hi-Power for "taste testing" in stores, direct marketing efforts to consumers 'and other brand-building activities like sporting event sponsorships. The costs of the promotional products were recorded as a sales and marketing expense for the month.
Including the $2.0 million September sales, year-to-date sales of Hi-Power beverages were $17.3 million as of September 30, 2010. Based on projections for the fourth quarter of 2010, China Marine has increased its revenue guidance on Hi-Power beverage sales to $23.0 to $25.0 million for the 2010 year. Hi-Power retail locations now total 12,000 retail points throughout Fujian province, an increase of 20% since the Company last reported retail end-point count.
"Sales of Hi-Power were strong the summer since consumers typically drink more liquids in these hot months," began Pengfei Liu, Chairman and CEO of China Marine. "As we move into winter, distribution and customer base expansion is our goal for Hi-Power and our Mingxiang®-branded foods. Cost-effective promotions, when managed in coordination with distributors, have proven to be an effective method to build our brand, expand our customer network, maintain distributor loyalty and drive sales. We were pleased to see the results of this promotion increase our end-user network and achieve consumer recognition from our collective sponsorship of marketing campaigns during the third quarter. We are confident in our revised revenue guidance for the year."
About China Marine
China Marine Food Group Ltd. is a food and beverage manufacturer of Mingxiang® seafood-based snack foods and "Hi-Power" marine algae-based health drinks, and a wholesaler of frozen marine catch in seven provinces in the PRC. Founded in 1994, China Marine has grown steadily and positioned its Mingxiang(R) brand as a category leader in 3,000 retail food sales points and 12,000 beverage sales points in China. The Company has received "The Famous Brand" and "Green Food" awards. Located in 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.
For more information, please contact:
Mr. Marco Hon Wai Ku, CFO
China Marine Food Group Limited
Suite 815, 8th Floor
Ocean Centre, Harbour City
Kowloon, HONG KONG
John Mattio, SVP
HC International, Inc.
Tel: US +1-203-616-5144
SOURCE China Marine Food Group Limited