Niusule Biotech Corp. develops and distributes health food and related products manufactured in the US to Chinese consumers. The company launched its Niasule Gummy Bears nutritional supplements for children in September 2009 and its PlantFusion protein powder in June 2009. Niusule has a retail distribution network of 36 outlets in the Zhejiang province and is aggressively seeking to expand into other regions in China.
The company announced today guidance for revenue, gross margin and net income for calendar year 2010. Based on current trends and planned expansion of its retail distribution network, Niusule management is now forecasting that revenue for 2010 is expected to be approximately $10 million. The company also estimates net income of $2.5 to $3 million with gross margins to be in the range of 70% to 75%.
Niusule’s Gummy Bear products have been well received in China and are quickly gaining popularity. The company has signed contracts with two distributors in Zhejiang province to distribute its products through leading retail outlets and pharmacies including Century Lianhua Supermarket, French retailer Carrefour, Trust mart and CRV (China Resources Vanguard) Mart.
Under this contract, the company expects to distribute its products through 100 retail outlets in Zhejiang province and Shanghai, including 50 pharmacies by the end of the year 2009. The total is expected to reach 250 retail outlets by the year 2010. In 2011, the company plans to add new markets including Beijing, Guangdong province and Jiangsu province. Niusule expects to invest 17% of its 2010 revenue in advertising campaigns to establish a strong brand name with a slightly lower level of advertising spending in 2011.