CNOA: China Organic and wine distribution.


Here is an interesting post from Yahoo concerning the wine business segment of CNOA.OB.





11/07/2009

"Can't say for sure yet. Dalian does seem to be a much better deal right now, however I have always maintained that the wine business may very well be the flagship division within five years. It all depends on how many relationships can be built with Californian wineries to push product throught CNOA's existing distribution network. To give you an idea of how profitable the wine business is...consider the state of New Jersey. NJ has three four main distributors. A few smaller distributors sprinkled throughout the state, but non-material. The wine business in NJ alone is well above $500M/yr. Now consider the size of NJ to China.
it will not take a whole lot for CNOA to affect huge revenues in China a short period. So far it looks like the company is grabbing the low hanging fruit and Hans has confirmed that they are taliking to the companies that Belissimo currently sells its bulk wine to for about distribution partnerships. Considering that those companies are Ledson, Gallo, etc... those would be huge wins. I am not counting on any of that to happen, however it would be very big. China is extremely difficult to distribute brands as a non Chinese company which makes CNOA that much more atractive for compnies to form partnerships. So all the wine compnies that will be looking to tap into the explosive Chinese markets will be looking for partners for help."