WUHAN CITY, China, June 20, 2012 /PRNewswire-Asia/ -- Tianli Agritech, Inc. (NASDAQ: OINK - News) ("Tianli" or "the Company"), a leading producer of breeder and market hogs, and retailer of pork products, headquartered in Wuhan City, China, today announced that the Company is refocusing its retail expansion strategy. In conjunction with the revised strategy, Tianli terminated its exclusive agreement with An Puluo Food, Inc. ("An Puluo") executed on March 29, 2011.
Tianli and An Puluo Foods began selling branded packaged pork through An Puluo's retail distribution channels in April 2011. After 14 months of collaboration, Tianli has decided to diversify its retail distribution to more partners in order to reach a broader customer base to larger cities for its branded pork products. As a result, Tianli terminated its exclusive marketing program with An Puluo Foods to provide the Company additional retail and meat processing options and partnerships. In the near term, Tianli will remain a customer of AnPuluo Foods to service their combined customer base of Tianli-AnPuluo branded pork meats while the Company engages other, non-exclusive, sales agreements.
Tianli is committed to its retail expansion. A central part of its retail growth strategy centers around its Enshi Black Hog program started in the third quarter of 2011. Tianli's five-year exclusive agreement with government agencies in Enshi Autonomous Prefecture allows the Company to raise, process, and sell Black Hog products, which command premium prices and margins. Tianli is building its own brand in preparation for the launch of its Black Hog meat program in the third quarter of this year.
"We thank An Puluo for their hard work," started Ms. Hanying Li, Chairwoman and CEO of Tianli. "Both companies learned a great deal over the past year from our collaboration. Ultimately, we decided that it is in Tianli's best interest to expand the number of retail distribution partners in order to quickly scale this business and prepare for our Enshi Black Hog program. We are working quickly to execute this new strategy in order to service Chinese consumers' demand for higher quality pork meat."
About Tianli Agritech, Inc.
Tianli Agritech, Inc. is in the business of breeding, raising and selling breeder and market hogs in China and the development of a retail channel for its pork products including high-value, black hog meat. The Company is focused on growing high quality hogs for sale for breeding and meat purposes. The Company conducts genetic, breeding and nutrition research to steadily improve its production capabilities. For more information about the Company, please visit http://www.tianli-china.com/.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by this cautionary statement and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE Tianli Agritech, Inc.