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INDUSTRY DRIVERS Expanding Consumer Class Demographics in China, as well as other emerging economies in Asia, show a rapidly growing affluent population that is becoming increasingly health conscious in a region consisting of a quarter of the world’s population and the largest middle class. Food Safety With news of recent food safety scandals, such as the melamine milk scare, Chinese consumers are increasingly retreating to safe food products that are free of pesticides, chemicals and heavy processing. Increasing Disposable Income As their incomes rise, Chinese consumers are changing their diets and demanding greater quality, convenience, and safety in their food, fueling recent growth in sales of premium food and beverage products. Organic Foods Consumption In Asia, it is estimated that organic retail sales now exceed $1 billion and China is the Asian country with the largest area of organic certified land. Wine Consumption In 2007, the import of wine into China totaled approximately 54 million bottles according to the latest report of the International Wine and Spirit Competition. Total wine consumption in China is expected to increase 65% from 2001 to 2010, a growth rate over six times faster than the global average. Price Support Despite reassuring supply numbers in 2008, several governments’ export restrictions combined with the rapidly-growing emerging market economies will likely keep prices for rice and other agricultural products high for the foreseeable future. |
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| Cautionary Statement Any statements in this summary about CNOA's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). These statements are often, but not always, made through the use of words or phrases such as "believe", "will", "expect", "anticipate", "estimate", "intend", "plan", "forecast", "could", and "would". CNOA bases these forward-looking statements on current expectations about future events. They involve known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by any forward-looking statement. Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections in the forward-looking statement include, but are not limited to, the risk that we might not achieve our anticipated development milestones, the market for our products will not grow as expected, and the risk that our products will not achieve expectations. For additional information about risks and uncertainties CNOA faces, see documents CNOA files with the SEC. CNOA claims the protection of the safe harbor for forward-looking statements under the Act and each assume no obligation and expressly disclaim any duty to update any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of subsequent events. |
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