DAQING, China (AP) -- Specialty fruit products company China Nutrifruit Group Limited said Monday that it will stop selling drinks so that it can better focus on higher-margin sales such as its glazed fruit.
The company said that its beverage products business contributed approximately 6 percent of its revenue during the past nine months, generating a 29 percent gross margin.
However, high production costs and increasing competition has made it a less attractive business, and the company ceased production.
China Nutrifruit plans to increase the efficiency of its glazed fruit line and said it will upgrade all of its fruit concentrate production lines.
Shares of China Nutrifruit fell 6 cents to $3.80 in midday trading Monday.