Message #7 From:
NewsBot Date: June 16, 2008 12:29:57 PM
CNOA Stock: China Organic Agriculture Establishes New Subsidiary to Capitalize on Growing Demand for Premium Wine in China
Companys Far East Wine Holding Group to
Engage in Export, Marketing and Distribution of California Wine Brands
China Organic Agriculture, Inc. (OTCBB: CNOA china stock), a growth-driven
agriculture products company leading China's organic food revolution,
has announced the incorporation of the Far East Wine Holding Group
Limited, effective June 10, 2008. The formation of this subsidiary
represents a major component of the Company's recently launched
strategic plan to capitalize on the fast-growing demand for premium
California wines in China.
The formation of the Far East Wine Holding Group follows China Organic
Agriculture's acquisition on February 29 of the Bellisimo Vineyard
property, which provides Chardonnay, Merlot, and Cabernet Sauvignon wine
grapes, located in Sonoma County, California. China Organic intends to
market wines in China under its own label, and to distribute other
successful California-based wine brands.
China Organic will focus on serving the
Chinese demand for California wines with a mission to distribute a range
of upscale brands at premium prices as well as good quality wines at
competitive prices, said Changqing Xu, Chief
Executive Officer of China Organic Agriculture. It's
our intention to establish a leadership role in this emerging
marketplace to capitalize on the industry's high revenue growth
opportunities and very attractive profit margins. We anticipate that our
experience in the creation of distribution networks for our agricultural
products will help us efficiently penetrate markets throughout China.
Demand in China for foreign wines, including those produced in
California, is growing rapidly. In 2007, the import of wine into China
totaled approximately 54 million bottles, representing a 125% growth
from 2006, according to the latest report of the International Wine and
Spirit Competition. The market share of imported wines in China
increased from 6.6% in 2006 to 10% in 2007, while industry analysts
project that share will reach 18% in 2008. Total wine consumption in
China is expected to increase 65% from 2001 to 2010, a growth rate 6.5
times faster than the global average.
China Organic Agriculture is a leading producer and distributor in the
agricultural industry in China. The Company's high-growth business plan
is designed to enable it to capitalize effectively on China's burgeoning
economy and expanding class of consumers with the ability to acquire
upscale products. As one of the largest producers of green and organic
rice in China, the Company has developed an extensive distribution
network throughout many of China's major cities, including Beijing,
Shanghai and Manjing, and is positioned to leverage those networks to
establish broad distribution of a number of agricultural, food and
related premium products. China Organic Agriculture is among the largest
producers of green and organic rice in China and controls all aspects of
the process, from the development of seeds to planting, processing, and
distribution. CNOA has in excess of 6,260 acres dedicated to the
production of green and organic rice, with an irrigation system fed from
the Nen River, one of the last unpolluted rivers in China. The Company's
flagship brand, ErMaPao, has won several awards for its high quality,
holds the highest organic certification and is one of the most popular
brands in the country. The Company has experienced significant growth
since its inception in 2002 and has implemented a number of strategic
initiatives to expand sales and revenues. For more information, please
visit: www.chinaorganicagriculture.com
FORWARD-LOOKING STATEMENTS: This document includes forward-looking
statements. Forward-looking statements include, but are not limited to,
statements concerning estimates of, and increases in, production, cash
flows and values, statements relating to the continued advancement of
China Organic Agriculture's products and other statements which are not
historical facts. When used in this document, the words such as "could,"
"plan," "estimate," "expect," "intend," "may," and similar expressions
are forward-looking statements. Although China Organic Agriculture Inc.
believes that its expectations reflected in these forward-looking
statements are reasonable, such statements involve risks and
uncertainties and no assurance can be given that actual results will be
consistent with these forward-looking statements. Important factors that
could cause actual results to differ from these forward-looking
statements include, but are not limited to, those set forth in our
reports filed with the Securities and Exchange Commission, together with
the risks discussed in our press releases and other communications to
shareholders issued by us from time to time, such as our ability to
raise capital as and when required, the availability of raw products and
other supplies, competition, the costs of goods, government regulations,
and political and economic factors in the People's Republic of China in
which our subsidiaries operate.
