Products in oversea market is distributed through trading partners which include importers, sales agents of local distributions in oversea market who will distribute products to consumers of main market in each country. The Company has single trading partner policy where such partner must be skilled in product distribution. In other countries which are not main markets, the products are selected for importers, sales agent or local distributors based on suitability of business operation in each country. The Group has assigned oversea sales team who is directly responsible for management and building good relationship with oversea partner.
Product distribution oversea is an outright sell to importers, sales agent or local distributors without product refund policy. In 2017 our products are distributed to many countries globally under management of CBD. The top 5 countries that generate highest sales revenue are Cambodia, China, Myanmar, Vietnam and Afghanistan. The Group plan to expand to new larger and potential markets for future growth.
The Company acquired shares in ICUK which is responsible for marketing activities and distribution of energy drinks under Carabao brand for markets in UK and countries outside Asia. In 2017, product distribution channels are expanded to various modern trade such as Booker, One-Stop, WHSmith, Spar, BP, Morrisions, Co-op, Ocado and Poundland. In addition, the products will be available in ASDA in January 2018.
At present, the products can reach target groups in over 20,000 points of sales throughout UK as of 2017. Based on image of a sponsor of football clubs and the world leading football teams, the Company plan to expand distribution coverage through modern trades.
Products distributed in UK are carbonated canned Carabao volume 330 ml., with 4 flavors namely Original, Sugar Free, Green Apple and Green Apple Sugar Free.
For market in Greater China, energy drinks under Carabao trademark are distributed through a trading partner in China which is a joint venture between (1) Major shareholders of the Company (2) DAI Group (3) Chinese Management who have knowledge and experience in management marketing, sales and distribution of energy drinks under the leading brand in China for over 20 years. The Company has exported energy drinks under Carabao brand to the joint venture for the first time in Q1/2017, sales in China reached 20% of revenue from overseas sales in 2017. The joint venture in China can distribute energy drink under Carabao brand to over 300,000 points of sales in 30 provinces of China. A sales team with more than 900 staff are to assist in communication, creating brand awareness and encourage to try energy drinks among stores and consumer groups. In addition, the trading partner in China plans to increase distribution coverage on continual basis coupling with product promotion to wider ranges of recognition.