Sep 22 2010
Shiner International, Inc. (Nasdaq: BEST) ("Shiner" or the "Company"), an emerging global supplier of anti-counterfeiting and advanced flexible packaging solutions, today announced that it has established a new sales company based in Shanghai.
The new company, Shanghai Juneng Functional Film Company, Ltd. ("Shanghai Juneng"), will increase Shiner's presence in China's growing food-safety packaging market.
Shanghai Juneng will pursue sales opportunities among China's leading food producers in the Yangtze River Delta, one of the nation's largest economic centers. Major food producers operating in the Yangtze River Delta include Want Want China Holdings Ltd., a Hong Kong-based investment holding company engaged in the manufacturing and distribution of food and beverages; and Yurun Group Co., the second largest sausage manufacturer in China. Shanghai Juneng is scheduled to begin operations on September 20, 2010.
Shanghai Juneng is a joint venture between the Company and Shanghai Shifu Film Material Co., Ltd., a Shanghai-based sales company specializing in films for various industrial and consumer applications. Under the terms of the agreement, Shiner will own 70% of the joint venture, and Shanghai Shifu Film Material will own 30%. The general manager of Shanghai Juneng will report directly to the CEO of Shiner.
Shiner expects strong demand in the food packaging business, driven by the recent food safety regulations in China and a rising demand for processed foods that provide convenience in correlation with China's elevated standard of living. According to Euromonitor International, "As China's economy develops, Chinese consumers are increasingly turning to packaged goods, which offer convenience, quality, aesthetics and lifestyle branding." Market research firm RNCOS forecasts that China's processed food industry will grow at a compound annual growth rate of approximately 33% through 2013.
Shiner's president and CEO, Qingtao Xing, commented, "The launch of our Shanghai sales company marks a significant step forward in our marketing and business expansion strategies. We expect Shanghai Juneng to enhance our market share in the domestic food packaging industry and strengthen Shiner's position as one of China's leading packaging film manufacturers. Furthermore, we plan to open several new sales offices throughout China in the near future, which we will utilize to expand the client-facing side of our business and attract additional demand for our products."