(COMTEX) B: CHIF BOARD TO UNDERTAKE $15 MILLION EXPANSION
B: CHIF BOARD TO UNDERTAKE $15 MILLION EXPANSION
NEW YORK, May 25 /PRNewswire/ -- China Food and Beverage Company (OTC
Bulletin Board: CHIF) announced today that its board of directors has
approved a plan to join forces with Gourmet's Choice Coffee Co., Inc.
(OTC Bulletin Board: GMCH) to introduce Gourmet's Choice Coffee into
Asia via sales through a chain of small coffee shops. The plan calls
for the opening of twenty four coffee shops in Hong Kong, Shanghai,
Beijing, Tokyo, Seoul, Pusan, Singapore, and Kuala Lumpur.
Investors from Hong Kong and Seoul will meet with CHIF executives in
June to finalize the expansion plan, which will potentially be financed
by an equity stock offering of up to $15 million. The plan calls for
each coffee shop to be approximately 2,000 square feet with seating
capacity for 120.
Although tea has traditionally been the hot drink of choice throughout
Asia, coffee consumption has steadily increased at a rate exceeding 10%
per year and should overtake tea consumption within the next five
years. The strategic alliance with GMCH will provide a reliable and
inexpensive source for over 20 blends of gourmet coffee from around the
world and provide profit margins exceeding 30%.
James Tilton, President of CHIF stated, "This single move has the
potential to double our current revenues within the next eighteen
months. Asia is the world's largest consumer market and will soon
become the world's primary market for coffee."
China Food and Beverage Co. reported revenues of $15.9 million and
a pre-tax earnings of $2.9 million for the year ended December 31, 1998.
China Food and Beverage Co. is a U.S. holding company whose
strategy is the acquisition of regional Chinese breweries that
complement its existing business, distribution and product lines.
For further information on China Food and Beverage Co., contact
Investor Relations at 800-641-5844 or visit the company's web site,
chif.net
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, which
are intended to be covered by the safe harbors created thereby.
Investors are cautioned that all forward-looking statements involve
risks and uncertainties, including, without limitation, the ability of
China Food and Beverage Co. to accomplish its stated plan of business.
Although China Food and Beverage Co. believes that the assumptions
underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could be inaccurate and, therefore,
there can be no assurance that the forward-looking statements included
in this press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by China Food and Beverage Co. or any
other person that the objectives and plans of China Food and Beverage
Co. will be achieved.
SOURCE China Food and Beverage Company
-0- 05/25/99 /CONTACT: Investor Relations
of China Food and Beverage Co., 800-641-5844/
/Web site: chif.net (CHIF GMCH)
CO: China Food and Beverage Company; Gourmet's Choice Coffee Co.,
Inc. ST: New York, China IN: FOD SU:
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