I repeat an appendix, Appendix B, from one of my 41 letters to Beverage company executives. It's a reminder of the extremely broad and extremely huge Chinese market for Pulse Cabana. Better4U is now handling that distribution. This is happening!
This is from my letter to Starbuck's CEO Shultz. I sent it to his residence as well as his office. This letter was dated May 2017.
A distribution process is starting in Guangdong Province which has a Tropical/sub-tropical climate similar to Florida in the USA, but with a population of 109M which is more than 5 times Florida's population of 21M! Rosa 2 years ago started in Northern provinces around the capital of Beijing. At the time of this letter, Yates was still in control. Distribution is now under the control of Better4U and other entities that I won't mention here. Remember introduction of Cabana to China is now starting in the tropical areas of Guangdong/Hainan(a tropical island) and Taiwan. This area includes the entertainment area of Macau and the mega financial center of Hong Kong!
"APPENDIX B
My China Analysis relative to PULSE Beverages
CHINA ANALYSIS:
China/Rosa Trading Company
I think there is hope in the China markets for PULSE drinks. In August 2015 Pulse Beverage Corporation announced an order for Cabana products, 1500 cases (small but a start) by the “Nantong King” Food Co, a member of the Beijing Rosa International Trading Company which is based 50 miles north of Shanghai, the largest port city in China.
Rosa’s mode of operation includes transport of goods from the country of origin (in this case the USA) to Chinese markets. Also Rosa sometimes invests in the companies whose products they are transporting.
Rosa’s facility locations in China include the Beijing/Tianjin metro area and the surrounding 2 Provinces of Liaoning and Hebei. This Beijing metro area alone has a population of approximately 127.5 million. Additional Rosa facilities are located south of Beijing and from north to south are the Provinces of Shandong and Jiangsu, the port city of Shanghai, and the sub-tropical Province of Fujian.
It turns out that these locations are all on the east coast of China. If a few other east coast provinces that are interspersed among the aforementioned provinces are included in the prospective Pulse market areas, then the entire east coast of China is covered. These provinces include Anhui, Zhejiang, the sub-tropical/tropical province of Guangdong (which includes the cities of Hong Kong and Macau) and the tropical island province of Hainan. The combined population of this potential market area is 574.1 million. OVER ½ BILLION!
This east coast of China can be easily compared to the east coast of the USA with respect to length and climate.
Beijing in the north to the tropical island Province of Hainan in the south is a distance of 1804 miles. Additionally, a very high-speed bullet train covers 1428 miles of these 1804 miles, from Beijing to the Guangdong Province capital city of Guangzhou. In comparison, Bar Harbor Maine to Miami FL is 1769 miles.
The climates of both coasts can be compared. From the Liaoning/Beijing climate comparison with the New England/New York climate, to the Guangdong/Hainan climate comparison to Miami and southern Florida’s climate, the two coasts are very similar, except for one thing…..population.
The tropical/sub-tropical population of the China east coast is approximately 207.1 million. This is a little less than 2/3’s of the entire US population. If we add persons living in warm humid
APPENDIX B (cont.)
My China Analysis relative to PULSE Beverages
temperate climate zones this number jumps to 446.6 million. That’s 446.6 million people living in either a Tropical/sub-tropical or warm humid temperate climate zone! That’s a lot of persons needing rehydration with a new novel drink from America and that’s 35% more than the entire US population. This is particularly interesting if the use of air conditioning is low in China, which may be true.
PRICE POINT?
Picking a price-point for Cabana in China could be a challenge particularly with a falling Chinese Juan. Rosa’s president said the wealthy will be interested in Cabana. I looked at a comparison of income distribution in China and was very surprised! Both countries have almost identical income distribution percentages.
Income share held by the highest 10%:
China 28% USA 27%
Income share held by the highest 20%:
China 43% USA 45%
Income share held by the lowest 20%:
China 4.9% USA 4.9%
Maybe the price point is not that critical on the Chinese east coast. A majority of the wealthy in China live on the east coast so maybe an ample portion of the population can afford Cabana?
Thank you for your attention to my China analysis,"
AI
