CFC China Food Co.

TIDMCFC

RNS Number : 9211Q

China Food Company PLC

27 October 2011

 
 Press Release   27 October 2011 
 

China Food Company Plc

("China Food" or the "Company")

Trading Update

China Food Company plc (AIM: CFC), a leading Chinese manufacturer of cooking and dipping sauces, today gives the following update on trading.

During the recent China Food Fair in Shenyang City, Liaoning Province, the Company is pleased to announce that it has now signed 34 regional distributors and is on target to sign a further 26 regional distributors for its 'Xaka' soya sauce, the Company's premium grade soya sauce. These are all first tier distributors with at least RMB30 million annual turnover and complement the existing network of distributors that is already carrying the Group's products. 'Xaka' won "Best new product of the China Food Association" and received many positive responses from both distributors and retailers who attended the Fair.

The China Food Fair is the largest trade food event in China organised by the China Food Association. It is held twice a year, in May and October. This year's October Fair in Shenyang City drew over 3,000 participants and over 300,000 trade visitors.

The Company also received very positive responses from consumers, especially in Jinan City, Shandong Province and Shenyang City, Liaoning Province where the Company rolled out test marketing of 'Xaka'. Management anticipates increased sales as all China Food's products are rolled out through the new distributors.

In addition to the above, the Company remains in discussion with many other distributors who have shown interest in the Company's broad product range and the Board will update the market on the resultant impact on sales in due course.

The Company also confirms that negotiations are continuing over the future of the feed business, and the management is now in detailed discussions with a number of parties. A further update will be made on this when appropriate.

- Ends -

For further information:

 
 China Food Company Plc 
 John McLean, Non-Executive Chairman        Tel: +44 (0) 7768 031 
                                                              454 
 Raphael Tham Wai Mun, Chief Executive 
                                         www.chinafoodcompany.com 
 Numis 
 David Poutney - Head of Corporate           Tel: +44 (0) 20 7260 
  Broking                                                    1000 
 
  finnCap (Nomad) 
 Geoff Nash / Ben Thompson (Corporate        Tel: +44 (0) 20 7600 
  Finance)                                                   1658 
 Simon Starr (Broking) 
 

Media enquiries:

 
 Abchurch Communications 
 Henry Harrison-Topham / Joanne Shears     Tel: +44 (0) 20 7398 
  / Mark Dixon                                             7709 
 mark.dixon@abchurch-group.com           www.abchurch-group.com 
 

Notes to Editors:

China Food is a well-established food manufacturing business based in Shandong province in the People's Republic of China, a region with a population of circa 94 million. A recent report identified Shandong province as one of the five most attractive 'city clusters' in China, due to the high number of large cities in the province*. The Group manufactures numerous different product lines including soya sauce and bean paste, all targeting the Chinese domestic market, and sold through a network of distributors and outlets of supermarket chains in the north-eastern region of the PRC, such as Tesco, Walmart, Carrefour and Jialejia.

The Chinese sauces, dressings and condiments market is expected to be worth CNY115 billion (US$15 billion) by 2013**, driven by Chinese population growth and economic prosperity. The Chinese domestic market is rapidly expanding, and the Group is well positioned to benefit from China's demographic growth and increased urbanisation.

The Group also operates an animal feed business, Fuss Feed. This business produces premix, concentrate and compound feedstuffs, and is the third largest animal feed business in Shandong, an important province for the production of livestock in China.

The Group's operations are highly scalable and able to support further growth, and with net assets of GBP37.8 million (as at 30 June 2011), the prospects for China Food are strong. Further information on China Food Company can be found at www.chinafoodcompany.com.

*McKinsey Quarterly Report: Is your emerging market strategy local enough?, April 2011

**Source: Datamonitor report: Sauces, Dressings and Condiments in China to 2013, April 2010

This information is provided by RNS

The company news service from the London Stock Exchange

END

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