SkyPeople Fruit Juice Introduces Four New Labels For Hedetang Juice Beverages

SkyPeople Fruit Juice, Inc. a processor of kiwifruit, apple, pear and other concentrated specialty fruit juices and manufacturer of Hedetang-branded fruit beverages, revealed four new Hedetang juice labels for a 500 ml bottle to retail customers and distributors at the Company's launch event in Xi'an on December 28, 2010 and has now begun shipping to their customer bases in Xi'an and Beijing. The Management expects to expand distribution of Hedetang-branded fruit juice beverages to 200 retail locations in multiple cities including Beijing, Tianjian, Wuhan and Xi'an by the end of the second quarter of 2011.

"Our design team has been developing new packaging for Hedetang juices for the last four months," began Mr. Yongke Xue, CEO of SkyPeople Fruit Juice. "We now sell six flavors of Hedetang juices in 280 ml glass bottles, our new 500 ml glass bottle and case packs, including apple juice, pear juice, kiwifruit juice, mulberry juice, kiwifruit cider and mulberry cider. We position our juices at a premium retail price of 4.80 yen or $0.73 US dollars for the 280 ml bottle, 11.80 yen or $1.79 US dollars for the 500 ml bottle and 78.00 yen or $11.84 for our 6-pack box. Our pricing, unique flavors and superior taste of our beverages allow us to retain shelf space at some of the best known food retailers in China. We are extremely pleased with our results so far, with our beverage sales growing by an impressive 89 %, from $5.3 million in 2008 to $10.0 million in 2009. The new labels, along with expanded distribution into new markets, will help increase our brand awareness and sales."

Initial shipments of juices with the new packaging began in Xi'an on January 28, 2011. Customers shipped included Wal-Mart, Trust-Mart, which was acquired by Wal-Mart, and La Cuisine Royale. The Company anticipates building momentum after the Chinese New Year Holiday through in-store tasting campaigns and sales road shows. SkyPeople has also secured marketing support from more than 30 large-scale retail stores in Xi'an to feature Hedetang juices with the Company's new labels at high-traffic locations in beverage aisles.

SkyPeople currently sells Hedetang juices to more than 100 retail stores in Xi'an, Beijing, Wuhan, Tianjian and other cities in China. Hedetang juices generated $15.1 million in sales in the first nine months of 2010, representing 31 % of revenues. Management projects continued sales growth for Hedetang, driven by new products and expanded distribution.