Chinese shrimp firm Guolian Aquatic has signed a strategic cooperation deal with Sinopec, an oil company that also operates one of China’s largest networks of gas stations.
Guolian will distribute its frozen seafood products at selected outlets of the state-owned petroleum giant, which was formally known as China Petroleum and Chemical Corp. The move will be included as part of a rebranding effort by Sinopec geared toward generating more non-petroleum income from its gas stations in southern China.
Sinopec is one of China’s biggest firms, with a dominant presence in the fuel forecourt convenience retailing sector. However, Sinopec has taken a disinterested approach to retailing of non-fuel items, with its stores typically offering a scant selection of products.
Guolian executives were on hand this week at the Sinopec outlet in the Guangzhou suburb of Xingang to unveil the new concept store and related app. Officials from the provincial bureau of the Department of Agriculture were also in attendance at the launch. A range of Guolian’s frozen shrimp-based products will be the featured items in Sinopec’s new stores. Guolian has invested significantly in recent years in developing products for the domestic consumer and catering markets.
The crustacean firm was chosen to participate in Sinopec’s rebranding effort because of its consistency in its value-added products, according to Chen Chengmin, head of Sinopec’s fuel distribution business in Guangdong Province, considered China’s most prosperous region.
“We want companies with quality, standardized products,” Chen said.
Chen said it is his belief the coronavirus will encourage drivers to buy more items in Sinopec in order to reduce their shopping time in more crowded supermarkets.
“We have a concept of ‘person, car, food’ and we want to service our customers better,” Chen told journalists at the launch.
The Guolian-Sinopec deal wouldn’t be the first of its type. In 2018, a tie-ip with Sinopec was credited by Dalian-based seafood importer and processor Kai Yang Hai Xian for boosting its revenues. The firm, listed on the ‘third board’ for small- and medium-sized firms, has distribution deals with the filling stations operated by Sinopec across Liaoning Province and Sichuan Province. Kai Yang has driven sales of imported seafood like salmon, mantis shrimp, and Pacific cod in China.
Photo courtesy of Brookgardener/Shutterstock
