1. On October 23rd, the draft of the “Food Safety Law” was submitted to the Meeting of the Standing Committee of the National People’s congress for review for the third time. There were eight amendments to block up 8 loopholes.

2. The draft of the national standard of “Fruit Cider Soft Drinks” was promulgated by the Sub Committee of Soft Drinks of the National Food Industry Standardization Technology Committee. The national standard is hopefully to regulate the industry of cider soft drinks, and pace up the restructuring of the industry as well.

3. According to the “Irregular Report on Food Safety of China”, published by UN China office, over 99% of food exported from China is up to the standard, whereas the ratio for food in China is merely 85.1%.

4. Chin Quality Association published the results of its survey on “Consumers’ Satisfaction Degree of Mainstream Brands of Soft Drinks in China” in 2008 at its official website. Except for Coca Cola, all the other four in the top five brands are all local. The top five in sequence are Wanglaoji, Coca Cola, Master Kong, Huiyuan and President.

5. The new national standard of “Tea Drinks” would be enforced from November 1st.

6. The Ministry of Commerce made a statement for the first time on Huiyuan acquisition with diplomatic wording. It will judge the acquisition according relevant stipulations of the “Anti-monopoly Law”. It is against monopoly, but supports normal market behavior.

7. Guizhou Health Supervision Bureau carried out a sampling test on the safety of 20 types of fruit and vegetable juices sold in the province, all the 7 indicators of the tested products are up to the requirement, making the qualification ratio at 100%.

8. At the opening ceremony of the “2008 1st Drinks Festival of Sanshui, China”, which was held on the 18th, China Food Industry Association awarded Xinan zone, Sanshui District “Famous Drinks Town of China” plaque.

9. 2008 (8th) China International Exhibition of Manufacturing Technology and Equipment of Beer and Soft Drinks was inaugurated at China International Exhibition Center in Beijing on October 20th.

10. Hangzhou Quality Supervision Bureau published the “List of Companies with Serious Quality Defects of Tested Products from 2007 to First Half of 2008 in Hangzhou”. Drinking natural water produced by 14 companies in Hangzhou are not up to the qualification requirement.

List

BOABC Insights 1

News Flash 1

1.1 Soft Drinks Industry’s News Update & Policy Review 1

1.2 Monthly Update of Key Companies 3

1.3 Introduction to New Products and Technology 4

Soft Drinks Industry’s Developments 4

2.1 Monthly Monitoring on Soft Drinks Market 4

6.23 Million Tons Production of Soft Drinks in Sep. 2008, 7.6% higher from Same Period 2007 4

Outstanding Performance of Soft Drinks Industry of China, Output Broke 50 Million Tons in 2007 5

2.2 Monthly Monitoring on Drinking Water in Bottles and Barrels 7

Analysis of Production of Drinking Water in Bottles and Barrels in First Three Quarters of 2008 7

2.3 Monthly Monitoring on Carbonated Drinks 7

Analysis of Production of Carbonated Drinks in 3rd Quarter of 2008 7

2.4 Monthly Monitoring on Fruit Juices and Drinks 8

Analysis of Production of Fruit Juices/juice drinks in 3rd Quarter of 2008 8

Henan Ascended into Top Four of Fruit Juices 9

2.5 Monthly Monitoring of Other Soft Drinks 9

70% Annual Growth for 21 Years, Wahaha One of Top 5 in Sales in the World 9

2.6 Monthly Analysis of Import and Export of Orange Juice and Apple Juice by Original Country 10

2.6.1 32.17% Less Import of Frozen Orange Juice in September 2008 from Same Period 2007, Reaching 2,389 Tons 10

2.6.2 25.15% Less Export of Concentrated Apple Juice in September 2008 from Same Month 2007, to 46,875 Tons 12

2.7 Monitoring on Import and Export Volume of Orange Juice and Apple Juice by Company 13

2.7.1 Analysis of Orange Juice Importing Companies in Sep. 2008 13

2.7.2 Analysis of Apple Juice Exporting Companies in Sep., 2008 16

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