The Chinese population’s growing affluence is offering opportunities for premium and healthier products, says the CEO of the China Food Company (CFC) Plc, as the company posts better than expected revenues.
The Singapore-based Chinese food maker of cooking and dipping sauces has reported an increased demand from the China market.
According to a presentation detailing the financial results of the company as of September 2011, the company saw its revenue in the first half of 2011 rise by 9.6% to US$29.5m (GBP18.8m) from US$27.0m (GBP17.2m) in the first half of last year.
Profit before tax and set-up costs surged 21% to US$4.2m (GBP2.7m) from US$3.5m (GBP2.2m) the year before, the company said in the presentation, thanks to a growth in its existing condiments business.
The higher revenue and profits were on the back of its main brand, HaoTai Taisoya sauce, which grew 23% year-on-year in the first half, the presentation said.
Chinese middle class
Raphael Tham, CEO of China Food Company, said that the increased sales of has a lot to do with the company's increased capacity to meet the increasing demand from middle class China, referring to its new manufacturing facility in Shandong.
“We previously had capacity constraints but with our new factory up and running, we can meet the demand,” she said.
Tham pointed out that there are many opportunities for a company with their kind of product range, given that the Chinese population, due to growing affluence, is seeking more quality, premium and healthier products.
“This is largely due to the growing middle class and the food safety concerns over the last 2-3 years. Our focus will still be on condiments related products and the immediate focus is the roll-out of our premium range soy sauce products,” she said.
CFC recently launched a new premium grade soya sauce, Xaka, in August, with distribution planned throughout Shandong and across a further 16 cities in Northern China.
“We plan to beef up our marketing as we seek to expand our regional footprint and increase sales, now that we have increased production capacity. Once our branding and regional footprint is established, we will look towards broadening our product range further,” she said.