June 26, 2012

Tianli Agritech to refocus retail strategy

Breeder and market hog producer, Tianli Agritech, will be refocusing its retail expansion strategy as it ceases an exclusive agreement with An Puluo Food on March 29, 2012.

Tianli and An Puluo Foods began selling branded packaged pork through An Puluo's retail distribution channels in April 2011. After 14 months of collaboration, Tianli has decided to diversify its retail distribution to more partners, in order to reach a broader customer base to larger cities for its branded pork products. As a result, the company terminated its exclusive marketing program with An Puluo Foods. For the near future, Tianli will remain a customer of An Puluo Foods to service their combined customer base of Tianli-AnPuluo branded pork meats while Tianli engages other non-exclusive sales agreements.

A central part of Tianli's retail growth strategy centres around its Enshi Black Hog program, founded in 2011. Tianli's five-year exclusive agreement with government agencies in Enshi Autonomous Prefecture allows Tianli to raise, process, and sell Black Hog products. Tianli is building its own brand in preparation for the launch of its Black Hog meat programme in the third quarter of this year.

"We thank An Puluo for their hard work," stated Hanying Li, chair and CEO of Tianli. "Both companies learned a great deal over the past year from our collaboration. Ultimately, we decided that it is in Tianli's best interest to expand the number of retail distribution partners, in order to quickly scale this business and prepare for our Enshi Black Hog program. We are working quickly to execute this new strategy, in order to service Chinese consumers' demand for higher quality pork meat."

Tianli Agritech, Inc. is in the business of breeding, raising and selling breeder and market hogs in China and the development of a retail channel for its pork products, including high-value, black hog meat. The company is focused on growing high quality hogs for sale for breeding and meat purposes. The company conducts genetic, breeding and nutrition research to steadily improve its production capabilities.