Donner Corp. International, an Investment Banking firm headquartered in Santa Ana, Calif., today reiterated its Speculative Buy Recommendation on China Premium Food Corporation, North Palm Beach, Florida. China Premium Food produces and delivers fresh, nutritious quality milk and premium snack foods to China's 1.2 billion consumers, more than one-fourth of the world's population. China Premium has contracted with Warner Bros. to use Looney Tunes(TM) characters such as Bugs Bunny and Tweety Bird on the Company's packaging.

The reiteration is based on two major announcements by the Company:

  • Unveiling of a full-service B2B Food Portal for China, with full launch expected by July 1, 2000. The B2B portal will be a complete food distribution channel allowing Chinese institutions to procure quality products directly from the site. US food manufacturers will be able to utilize China Premium's established infrastructure in China to meet expected demand.

  • Signing of a definitive agreement to acquire Mandarin Fine Foods Company of Beijing and Shanghai, the dominant distributor of premium food products to major hotels in China including the Ritz Carlton, Sheraton, Holiday Inn, Westin, Hilton, Shangri-La and other major international chains. Mandarin's established food distribution combined with China Premium's B2B portal should provide a powerful food purchasing and distribution source for both Chinese and US companies.

  • Donner said it believes this is the first B2B portal specifically focused on bringing food products to China. Chinese consumers are spending increasing amounts of their growing incomes on food and China Premium Food is in a unique position to capitalize on this. B2B e-commerce in Asia is expected to hit $30 billion this year, according to The Gartner Group, and could exceed $1 trillion in 2004. "We believe the launch of China Premium's B2B food portal will be very significant for free trade and offers the Company tremendous revenue potential," Donner said.

    Copies of the Donner report on China Premium Food are available at 1-800-324-6050. Until recently, the Company was known as China Peregrine Food Corp.

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