The business will supply Lorain-branded youtiao – a deep-fried strip of dough typically eaten at breakfast – to 400 Walmart stores in China.
American Lorain chairman and CEO Si Chen said the listing would raise the profile of the brand.
“Our exclusive presence in the youtiao category with these Walmart stores helps to significantly to spread our brand recognition in China,” he added.
What is youtiao?
Youtiao goes by a number of names including Chinese cruller, Chinese oil stick and Chinese doughnut. It comprises a long strip of deep-fried dough that may be eaten in a number of ways including at breakfast with soy milk, or dipped in soup. It is popular in China and other Asian countries including Thailand, Indonesia and Malaysia.
Under the deal, Walmart will promote the Lorain-branded youtiao through channels such as Weibo (Chinese-language services similar to Twitter) and Chinese messaging app WeChat.
Chen added American Lorain will be working with Walmart with a view to launching more products in the near future.
American Lorain Corporation
Headquartered in Junan County, Linyi City, Shandong Province, American Lorain Corporation processes and manufactures chestnuts, convenience food and frozen food.
The business employs around 4,000 people and operates 13 food production lines. It has more than thirty offices for domestic trade, and exports to more than 40 countries and regions including Japan, South Korea, the US, Taiwan, Southeast Asia and Europe.
The business has worked with Walmart since 2001 and already supplies chestnuts products, bean products, French fries, frozen vegetables and boxed lunches to the retailer.
Walmart has operated in the Chinese market since 1996 and, as of August 2015, had 415 retail units in 166 cities in addition to nine distribution centers and 11 fresh products distribution centers.
The business says it “firmly believes” in local sourcing, claiming it has established partnerships with more than 7,000 suppliers in China and that more than 95% of the merchandise in its stores in China is sourced locally.
Walmart plans to increase investment across its business operations in China by opening up to 115 new facilities, between 2015 and 2017.