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Nutrastar Announces Second Quarter 2011 Financial Results
Date:8/12/2011

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"On the sales and distribution front, we've made significant yet conservative strides in broadening our channels and expanding our presence in the consumer market. In June, we opened our second specialty product store in a highly populated district of Harbin, further increasing our brand awareness and product availability in that area. In May, we ramped up our beverage distribution in Anhui Province with the signing of a new major distributor, adding over 400 points-of-sale to our distribution network. We are currently in negotiations with additional distributors and anticipate signing with some of these distributors in the future to more effectively and strategically pursue our expansion initiatives. We are preparing to increase our marketing efforts to bring more attention and interest to our functional health drink product line, which will require some capital currently on the balance sheet. As for new products, our recently released entry-level drink "Yang Yang Ba" has seen healthy sales volume since its introduction into the market and we are eager to bring our new exciting, unique Cordyceps-infused alcohol product to the market in the near future."

"Looking ahead into the remainder of 2011, we expect to continue to steadily execute on our focused strategies of growing organically and diversifying our consumer product offerings. Within these initiatives, we'll remain active in further broadening our sales and distribution network and increasing our production capacity in order to better meet the demand of the current consumer market. Currently, we are on track to bring online 3 additional buildings located on our production facility grounds by the end of the year, resulting in a 20% increase in annual capacity for our core product, reaching approximately 87 tons going into 2012. Lastly, based on the current forecast we are comfortable with the revenue guidance given at the beginning of the year," concluded Ms. Han.

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SOURCE Nutrastar International Inc.
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