XI'AN, China, Jan. 11 /PRNewswire-Asia-FirstCall/ -- SkyPeople Fruit Juice,
Inc. (NYSE Amex: SPU) ("SkyPeople" or "the Company"), a processor and
manufacturer of concentrated kiwifruit, apple, pear and other fruit juices and
fruit products in China, today announced the engagement of a general
distributor in Beijing to focus on the sales and marketing of the Company's
Hedetang(R)-branded fruit juice beverages to food and beverage whole-sellers
and retailers in the Beijing area.
On January 7, SkyPeople Fruit engaged a well-established beverage
distributor to develop sales and brand recognition of the Company's
Hedetang(R)-branded fruit juices in the nation's capital. Previously, the
Company has primarily relied on its own sales force to sell
Hedetang(R)-branded fruit juice primarily in the greater Xi'an area. The
distributor has been appointed to sell the Company's Hedetang(R)-branded fruit
juices to major retailers such as Wal-Mart, Jiale, Lotus and KA Supermarkets,
as well as other whole-sellers in the Beijing area. The distribution
agreement with SkyPeople includes a minimum sales commitment by the
distributor on a monthly and yearly basis. Based on such commitment, the
Company expects to generate sales of approximately US$7.0 million in 2010
under this distribution agreement.
"The entry into this distribution relationship is important to us in
several aspects," said Mr. Yongke Xue, Chairman of SkyPeople. "First, it
signals an important adjustment of our product mix to increase the relative
percentage of sales of our Hedetang(R)-branded fruit juice beverages as
compared to that of fruit juice concentrate. We believe there is a large
domestic market potential for fruit juice beverages because of the expanding
size of the Chinese middle class and the increasing awareness of healthy
lifestyle. Further, we believe prices of our branded fruit juice beverages
are generally less susceptible to general market conditions than those of our
fruit juice concentrate. Secondly, entering "tier one" cities in China is a
significant step for building the brand recognition of our Hedetang(R)-branded
fruit juice beverages and is consistent with our objectives to position
Hedetang(R) as high-quality kiwifruit, mulberry, apple and pear fruit juice
beverages. Third, by entering into a distribution relationship with a
well-established distributor in Beijing, we are further expanding our sales
network. Beijing was the first on our short list of objectives which include
all of tier one cities in China; Beijing, Shanghai and Guangzhou. Our
Hedetang(R)-brand of fruit juices beverages are gaining market interest with
target customers and the sheer size and demand of tier one cities will
significantly contribute to our top and bottom lines in 2010 and beyond.
Adjusting our product mix, building our brand recognition, diversifying our
customer base, building sales network and expanding into untapped sales
territories in China are the top priorities of our sales and marketing efforts
this year. Our goal is to increase sales of our Hedetang(R) branded fruit
juice beverages from approximately 12% in 2008 to 50% of sales in the next
three years," Xue concluded.
About SkyPeople Fruit Juice, Inc.
SkyPeople Fruit Juice, Inc. is a holding company of Shaanxi Tianren.
Shaanxi Tianren is a company organized according to the laws of the People's
Republic of China. Shaanxi Tianren's main products are concentrated apple,
kiwifruit, pear and other fruit juices for domestic and international
consumers. Its brand, HEDETANG(R), is positioned as a high quality, healthy
and nutritious juice concentrate and clear juice product used both as an
ingredient component in other products and an end-use juice concentrate
product. Shaanxi Tianren utilizes the largest kiwifruit plantation in China
and is a leading producer of concentrated kiwifruit juice in Asia. For more
information, please visit http://www.skypeoplefruitjuice.com .
This press release contains certain "forward-looking statements" that
involve a number of risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and the actual results and future
events could differ materially from management's current expectations. Such
factors include, but are not limited to, the Company's ability to obtain the
necessary financing to continue and expand operations, to market its products
in new markets and to offer products at competitive pricing, to attract and
retain management, and to integrate and maintain technical information and
management information systems, political and economic factors in the People's
Republic of China, compliance requirement of laws and regulations of the PRC,
the effects of currency policies and fluctuations, general economic conditions
and other factors detailed from time to time in the Company's filings with the
United States Securities and Exchange Commission and other regulatory
authorities. 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:
SkyPeople Fruit Juice, Inc.
Ms. Spring Liu, CFO
HC International, Inc.
Tel: US +1-203-616-5144
SOURCE SkyPeople Fruit Juice, Inc.