NutraCea, a world leader in stabilized rice bran (SRB), nutrient research and technology, announced today that they have received an initial purchase order from a health food marketer in China to introduce a nutritionally-fortified baby cereal into the Chinese market. The products will launch in February 2009 with the intention that they will eventually be available in Supermarkets and Specialty Baby Stores throughout China.
"Our customer has over 50 regional sales offices all over China and intends to distribute this custom-made, nutritionally-enhanced baby cereal product on a national scale in China once the initial introduction has been made," said Kody Newland, Senior Vice President of NutraCea.
According to the Chinese Company, "Our goal is to penetrate about 5% of the baby cereal market within five years. The total baby cereal market is about $580 million USD today."
"We are very pleased to be able to meet the demands of our customer by custom blending to their product specifications and providing them with a very unique, one of a kind baby cereal for the Chinese market," said Newland.
The product is scheduled to hit the market in China in February, 2009 and could have the potential to eventually reach up to millions of pounds of cereal annually.
"In previous conference calls, we have mentioned customers that will be serviced from the new Phoenix facility scheduled for startup in the fourth quarter 2008; this is one such customer," said Leo Gingras, Chief Operating Officer of NutraCea.
NutraCea is a world leader in the stabilization of rice bran. The Company applies its proprietary and patented technologies during the rice-milling process to stabilize the rice bran, which it then uses to manufacture ingredients and products that it distributes to a growing roster of customers around the world. NutraCea's products include nutritious, high-quality ingredients for human and animal food companies; nutraceuticals that promote health; and nutrient-dense rice bran products for humanitarian feeding efforts. The Company also has a growing market position in the stabilization and distribution of wheat bran, and it is increasingly engaged in the production of healthy edible oils and derivative products. NutraCea is headquartered in Phoenix, Arizona, U.S.A., and it has more than 300 employees. For more information on NutraCea, please visit the Company's website at www.nutracea.com.
This release contains forward-looking statements, including, but not limited to, statements regarding the anticipated product availability throughout China and the future product sales volume. These statements are made based upon current expectations and actual results may differ from those projected, due to various risks and uncertainties. The Company does not undertake to update forward-looking statements in this news release to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking information. Assumptions and other information that could cause results to differ from those set forth in the forward-looking information can be found in the Company's filings with the Securities and Exchange Commission, including the Company's most recent periodic reports.