Organic rice producer China Organic Agriculture has signed a retail distribution agreement with Huaxing Foods Limited, a retailer based in Changchun, the capital city of Jilin province.
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China Organic said it expected the deal could add as much as CNY40m (US$5.3m) to its revenues by the end of 2007. The fact that the company’s previous projected revenues for 2007 were $18m shows the significance of the deal.
“China Organic is experiencing a period of unprecedented growth that we believe will continue to create value for our shareholders well into the future,” said China Organic CEO Jian Lin. “This strategic partnership with Huaxing Foods as well as other major retail distributors such as Suguo and Hualian will only help to stabilise our growth and markedly increase our earnings moving forward.”
The move is consistent with the company’s stated strategic aim of expanding market share by gaining new partnerships with major retail partners in China and other emerging economies in Asia.
In addition to signing agreements with Hulian Hypermarkets of Beijing and Nanjing Suguo Supermarkets, China Organic has established distribution partnerships with several major food processors in China.
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