US' CALCOL Unit to Sell Soft Drinks in China Wal-Mart, Carrefour Stores

BEIJING (XFN-ASIA 2006-1-19 16:47:15 ) - CALCOL's (CLCL-OTC) China unit, Malibu-Cola Beverage Co Ltd, said it has won a contract to sell a variety of soft drinks at several hypermarket chains in China, the company's president said. "This arrangement will certainly help us increase market share in the Hebei area and then across China when more such arrangements are made with Wal-Mart and Carrefour," Malibu-Cola Beverage president Ji Jun told XFN-Asia. The Chinese unit plans to market Malibu-branded carbonated beverages at Wal-Mart, Sam's Club, Tesco and Carrefour outlets across China, Malibu-Cola said in a statement. 'We are currently delivering to Carrefour and Tesco supermarket chains in Beijing and Tianjin, and we are waiting on the first purchase order based on our contract with Wal-Mart's headquarters,' Ji said. "We will work together with the hypermarkets, and especially hope to cooperate with Wal-Mart's DC's (distribution centers) in Shenzhen and Tianjin to achieve nationwide marketing, and we also plan to open more factories closer to major markets," Ji said. CALCOL currently manufactures and distributes in China, primarily to Chinese-owned supermarkets and through local distributors in 10 major cities in the northern province of Hebei as well as Beijing and Tianjin. The Chinese unit makes Malibu-Cola, Sunrise Orange, Lemon Lime, Verry Cherry Cola and Lemon Squeeze Carbonated Lemonade, as well as Malibu Diet Dee-Lite Cola, which retail at a discount of 20-25 pct below prices of other global brand colas sold in China, the statement said. Carbonated soft drink products have dominated the food and beverage category in China for many years with sales of 14.5 bln yuan in 2004, according to market research firm ACNielsen. (1 usd = 8.1 yuan)