China Marine Reports Second Quarter 2011 Financial Results- Beverages
SHISHI, China, Aug. 8, 2011-- China Marine Food Group Limited (NYSE Amex: CMFO) ("China Marine" or the "Company"), a manufacturer of Mingxiang seafood-based snack foods, "Hi-Power" marine algae-based beverages and a distributor of frozen marine catch, today announced its financial results for its second quarter ended June 30, 2011.
"Hi-Power" Beverages
Revenues from the "Hi-Power" algae-based beverage line were $8.6 million compared to $7.8 million in the second quarter of 2010, a 10.7% increase. Sales were strong in Fujian province, driven by reorders from existing customers and continued reorders from major international and national food and beverage retailers where the Company continues its in-store promotional and end-cap display programs. The Company successfully entered the neighboring province to the north of Fujian, Zhejiang province, which accounted for approximately 11.3% of "Hi-Power" sales in the second quarter of 2011. Sales in Zhejiang are currently executed through one distributor, whose initial segment focus is in the hospitality sector, including restaurants, hotels and canteens in which China Marine sells both its 960ml and 246ml "Hi-Power" cans.
The total numbers of retail end-points for "Hi-Power" were about 15,000 on June 30, 2011. "Hi-Power" beverages are sold in major international retailers, such as Walmart, China-based supermarkets like Trust-Mart, convenience stores, bars, restaurants, school canteens and local corner stores, in addition to some store locations where Mingxiang-branded seafood products are also! sold. < br>
Gross margin was 40.4% in the second quarter of 2011 compared to 42.0% in the same period last year due to higher packaging costs. The Company outsources production, bottling and distribution to minimize its working capital and capital expenditures. China Marine continues to invest aggressively to build the "Hi-Power" brand. Advertising and marketing initiatives in the second quarter included advertising and marketing campaigns and direct marketing designed to drive new and repeat purchases and build distributor loyalty.
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 six provinces in the PRC.
Founded in 1994, China Marine has grown steadily and positioned its Mingxiang brand as a category leader in 3,200 retail food sales points and 15,000 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.
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