American Lorain Corporation, an international processed foods company that sells over 234 products in China and 42 foreign countries, recently announced that the company now has a total of 300 agents in 26 provinces in China. Over the past five months, American Lorain has been transitioning sales away from its direct sales force to agents, and has now increased the companyâ€™s distribution network from 19 provinces in China to 26 provinces.
American Lorain has signed 300 agents as of May 2009, allowing the company to reach more than 2,000 supermarkets, including more than 130 large-scale supermarkets and roughly 1,900 small- and medium-sized supermarkets. The new distribution channels also include international stores, such as 25 Wal-Mart stores and 24 Carrefour stores. The companyâ€™s products include chestnuts, convenience foods, frozen foods, canned foods and bulk foods.
Si Chen, chairman and chief executive officer of American Lorain, stated, â€œWe are extremely pleased with our progress of expanding our cooperation with sales agents. Transferring direct sales to agents will not only reach a larger consumer base at a lower cost, but more importantly, will reduce our accounts receivable burden and increase cash flow to help us develop products with higher margins.â€ He added, â€œThe wider distribution network will also serve as the foundation for our commercial campaign, which we plan to launch this summer.â€