Key Buyer 2019 Industry Update – Summer Edition

SUMMER EDITION

Snack Attack

DEMAND FOR SEAFOOD BITES ON THE RISE

Fetching Fish

Seafood for pets becoming popular

Modern Menus highlighting global flavors

SUMMER EDITION

DIGITAL PRODUCT MANAGER Faith Irek / firek@divcom.com EXECUTIVE EDITOR Cliff White / cwhite@divcom.com

Key Buyer 2019 Industry Update Sand. Sunshine. Seafood.

Summer has returned, bringing with it - at least in Maine - bounties of beach days, buckets of sunscreen, seaside lobster roll lunches, and lofty aspirations for the months to come.

We’re now halfway through 2019, and the themes for the seafood industry this year are growing more apparent. Innovation in the sector has become essential, redefining the very definition of seafood, where it can be found, and who it can nourish. The snack market specifically has been inundated by a wave of seaweed crisps, fish jerkies, and other seafood-containing munchies. (Take a bite out of “Snack Attack” on page 6).

Quality and provenance have been additional key focal points for the North American seafood market in 2019, and some suppliers from different continents, including Europe, are highlighting such elements in their attempts to appeal to the consumers of the region (Read “Coming to America” on page 26). According to global information and measurement company Nielsen, whether consumers are shopping for themselves, their pets, or their family and friends, they want humangrade food that is of a high caliber, with a story that resonates.

“Regardless of whether in human food or pet food, consumers are looking for exceptional products that fulfill a purpose, offer superior value propositions, and connect on a personal level,” Nielsen said in one of its recent reports focusing on the pet food buying habits of the modern U.S. consumer. (For more, read “Fetching Fish” on page 18).

These are just a few of the themes that SeafoodSource investigates and analyzes in its fourth Key Buyer Industry Update. With another six months to go in 2019, there’s still a lot of time to leverage the top key buyer trends driving the seafood sector through to the end of this year and on to the next.

Will you be at the forefront of the sea changes sure to sweep your business and those of your colleagues in the days ahead?

Grab a snack, read on, and get ready.

Madelyn Kearns Editor, SeafoodSource mkearns@divcom.com

EDITOR Madelyn Kearns / mkearns@divcom.com ASSOCIATE EDITOR Chris Chase / cchase@divcom.com SENIOR PRODUCTION DESIGNER Theresa Slusher / tslusher@divcom.com ADVERTISING COORDINATOR Kathleen Libby / klibby@divcom.com

@seafoodsource seafoodsource Diversified Communications 121 Free Street, P.O. Box 7438 Portland, ME 04112-7438 Ph: (207) 842-5606 Fax: (207) 842-5603 Published by Diversified Communications Producer of : Seafood Expo North America, Seafood Processing North America, Seafood Expo Global, Seafood Processing Global, Seafood Expo Asia and SeafoodSource Theodore Wirth President/CEO Mary Larkin President, Diversified USA Liz Plizga Group VP, Seafood Events Mary Fowler Sales Manager, SeafoodSource Heidi Weeks Sales, SeafoodSource Kelcey Leshinski Marketing, SeafoodSource

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3 | 2019 KEY BUYER INDUSTRY UPDATE

Summer Edition

03 INDUSTRY UPDATE 04 ADVERTISER INDEX

SeafoodSource

TABLE OF

CONTENTS

AD INDEX 15 17 07 09 C2 25 23 05 13 21 21 08 19 C3 11 C4

Ensis Fisheries, PVT, Ltd. Gregor Jonsson, Inc. Harbor Seafood JX Nippon ANCI, Inc. / Panaferd®-AX LP Foods Seafood Creations Morey’s Seafood International LLC Panamei® Seafood Ruggiero Seafood, Inc. Seafarers®, Inc. Seafood Certifications Guide Seafood Expo Asia Seafood Expo Portfolio SeafoodSource Premium Thai Union / Chicken of the Sea Top Catch Seafood True North / Bandera Bronzini

4 | 2019 KEY BUYER INDUSTRY UPDATE

Summer Edition

TRENDING NOW

Snack Attack DEMAND FOR HEALTHIER OPTIONS OPENS DOORS FOR SEAFOOD AND MARINE-BASED BITES

by Jeffrey Spear

STATISTICS PROVIDED BY MINTEL

6 | 2019 KEY BUYER INDUSTRY UPDATE

MORE AMERICANS are pursuing healthier lifestyles and making healthier food choices at every meal, including snack time.

According to recent statistics from Mintel, 90 percent of U.S. adults snack daily, 70 percent indulge in snacks two or more times a day, and 17 percent seek out treats between meals four or more times per day. Mintel also found that two-thirds of snackers are replacing meals with snacks.

Under these circumstances, it’s easy to understand the growing number of snack options that offer indulgence and, at the same time, meaningful nutritional value.

With increasing demand for more

nutritionally-balanced snacks, coupled with the health benefits attributed to seafood and marine-based products, it’s no surprise that new entries in the snack category are optimizing seaweed and finfish as their primary ingredients.

Seaweed has been popular in Southeast Asia for a very long time, with Americans introduced to the sea vegetable more recently – most notably as a way to wrap sushi. While it has been available in limited quantities in ethnic and niche food stores, there are growing numbers of seaweed brands – including gimMe, Nora, and SeaSnax – that are finding greater Summer Edition

TRENDING NOW

interest from consumers, and increased placement in mainstream healthy food and grocery settings in North America.

While healthy living advocates recognize and appreciate the nutritional value that seaweed represents, a tremendous amount of education still needs to take place among consumers and retailers alike with products in this category, according to Steve Broad, CEO of gimMe Health Foods.

“There are still a lot of people out there who see seaweed as an alien food.

Getting moms to understand that this is an enjoyable treat for their kids and, even better, a nutritionally dense snack, is a huge challenge,” Broad said.

Seaweed snacks, once limited in variety, are now available in numerous configurations with a wide range of flavors that include Spicy Tempura, Roasted Sea Salt, Jalapeno, Olive Oil, Toasted Coconut, Wasabi, Sriracha, Sesame, and Almond.

When it comes to snacks made from fish,

there are new products being introduced on a regular basis. The remarkable popularity of beef jerky – the best-selling snack food in the healthy living sector – coupled with an ever-increasing demand for nutritionally beneficial snacks has driven the creation of new several fish jerky products.

One of the most promising new arrivals in the fish jerky arena is OneForNeptune, an innovative producer using sustainable U.S. West Coast rockfish as its primary ingredient.

“We knew that customers were looking for something with the familiar taste and texture of beef jerky. It took making a lot of bad jerky in my home kitchen to perfect the winning recipes, all of which are being well received everywhere we go,” said Nick Mendoza, the founder of OneForNeptune.

OneForNeptune is a champion of the use of bycatch. While not yet commercially viable, the company is hoping to introduce products made from lionfish, an invasive species that threatens the well-being of coral

Brought to you by SeafoodSource | 7

TRENDING NOW

reefs and other marine ecosystems around the world.

While fish jerky is enjoyed by people of all ages, it seems that younger outdoor adventurers, as well as individuals following Keto and Paleo diets, have a particular fondness for this new type of snack. With considerably high levels of selenium and omega-3 fatty acids – nutrients that can promote brain development during pregnancy and early life – as well as other nutritional benefits, expectant mothers have become an important target market, Mendoza said.

Recognizing that consumers, especially millennials, are looking for “better for you” snacks that are convenient and portable, a few seafood brands including Bumble Bee, Chicken of the Sea, and Blue Hill Bay (Acme Smoked Fish) have entered the snacking arena as well.

“Pouched seafoods are one of our fastest-growing lines. They’re easy to throw into a lunchbox, briefcase, or stow in a car for when hunger pains kick in.

“While fish jerky is enjoyed by people of all ages, it seems that younger outdoor adventurers, as well as individuals following Keto and Paleo diets, have a particular fondness for this new type of snack.”

Beyond portability, [they’re] a delicious and nutritionally rich snack,” said Renee Junge, the vice president of brand marketing and innovation at Bumble Bee Foods.

Similarly, Chicken of the Sea has introduced “Infusions,” a line of tuna-based products infused with oil, herbs, and spices packed in portable, single-serve cups for on-the-go snacking.

Poke bowls are another big seafood trend becoming more popular for lunch and midday snacks. In response, Blue Hill Bay has introduced two protein-packed, preportioned, single-serve poke bowls featuring

smoked salmon and smoked ahi tuna.

Seafood snacks have been a mainstay in barrooms and beer halls in Russia, Korea, and Japan, and demand is growing in U.S. watering holes. Of course, there’s every expectation that an even greater variety of seafood and marine-based products will be emerging, with continued focus on products that pack nutritional value and convenience in a portable container.

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Summer Edition

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Modern menus highlight seafood variety, global flavors

by Jeffrey Spear

On the lookout for culinary adventures CHEFS, RESTAURATEURS, AND CONSUMERS are constantly on the lookout for new and exciting culinary adventures. The search is most definitely on in 2019 to find novel ways to prepare, serve, and enjoy foods that stimulate the senses and bring added enjoyment throughout the day. When it comes to seafood, there are methods by which these desires are being satisfied – as well as untapped opportunities.

While salmon and shrimp are topselling seafood species, demand is mostly 10 | 2019 KEY BUYER INDUSTRY UPDATE

71% of consumers eat seafood at least once a month.

STATISTIC PROVIDED

BY TECHNOMIC

flat, despite the fact that consumers find such seafood familiar and desirable. But seafood companies can find positive news in the fact that consumers are looking for higher-quality, higher-integrity foods.

According to research released by Technomic, 71 percent of consumers eat seafood at least once a month. Of these, 51 percent indicate they would like to see a greater variety of seafood dishes on restaurant menus. Based on these dynamics, seafood continues to gain recognition as a healthful Summer Edition

FOODSERVICE

alternative to chicken, beef, and pork, and is appearing on menus in both familiar and more innovative configurations.

In order to satisfy consumer demand for more engaging culinary experiences, operators need to recognize the wide variety of finfish and shellfish species available and the applications that work best for each. In response, chefs will be better positioned to swap out familiar seafoods with more esoteric varieties such as redfish, monkfish, barramundi, and bronzino, all of which are gaining favor. Chefs who are already utilizing a wider variety of species are transforming familiar dishes such as tacos and bowls (poke, buddha) into something considerably more exciting and exotic, providing new opportunities for safe experimentation.

According to Mark DiDomenico, the director for client solutions at Datassenntial, “Introducing new

seafood varieties in a familiar format gives the dish added novelty for consumers and a competitive advantage for operators.”

“If you think about tacos, you can prepare the seafood in a variety of ways, grilling, frying, etc., for an easy-to-execute dish. With the introduction of seemingly exotic seafood, the taco is transformed into an appealing item with a healthier perception than tacos made with other proteins,”

51% of consumers would like to see a greater variety of seafood dishes on restaurant menus.

STATISTIC PROVIDED

BY TECHNOMIC

DiDomenico added.

Restaurateurs are also finding small-plate configurations and appetizers that introduce new species better accepted by patrons; they provide an opportunity for exploration and trial at the table without the higher price and commitment that main dishes represent.

“While small plates at the dinner table are

Brought to you by SeafoodSource | 11

FOODSERVICE

one way to introduce unfamiliar or underutilized species, we continue to see opportunities for seafood innovation at the bar,” explained Lizzy Freier, managing editor at Technomic.

“Dishes such as seafood nachos and fish sliders that feature new and different seafoods can become strong performers on happy hour and snack menus.”

In situations where operators are reluctant to abandon popular seafood preferences, but want to give patrons the impression of greater choice, they have become more specific in the way they identify what’s being served. In the case of wild salmon, it is now being

“Dishes such as seafood nachos and fish sliders that feature new and different seafoods can become strong performers on happy hour and snack menus.” cuisines such as Korean and Indian are the norm. As such, ethnic ingredients such as gochujang, Thai curry, harissa, piri piri, lemongrass, furikake, chimichurri, and yuzu are appearing more frequently on menus and would be well-accepted when applied to seafood presentations.

For restaurateurs serving breakfast, lunch, and 47% called out on menus as either king, sockeye, or coho. midday snacks, especially those catering to the demand of Generation Z Menus are also making distinctions between regional from younger patrons, there are seemingly endless believe multicultural and seasonal varieties. When it comes to crab, popular ways in which seafood can provide new opportunities cuisines such as menu designations include blue crab, snow crab, king throughout the day. It can be as simple as taking Korean and Indian are the norm. crab, and – in some cases – soft-shell crab. recipes that currently feature chicken, beef, or pork and STATISTIC PROVIDED BY THE SEAFOOD NUTRITION PARTNERSHIP While expanding the menu with greater selection modifying them in a manner that features seafood or helps restaurateurs take advantage of the “healthy halo” associated seafood-based toppings and sauces. with seafood, consumers remain poorly informed about seafood in With the end-of-year festivities on the horizon, there are general, Freier pointed out. added opportunities for seafood to bring new vitality and culinary “Seafood traceability has become important at the point of sale. innovation to holiday dining, according to Bluzette Carline, the With proper guidance, restaurateurs can train their staff to become director of corporate marketing for Beaver Street Fisheries. better storytellers – helping patrons understand responsibly raised “Year-end holidays call for special indulgences. Diners will seafood, the difference between ‘farm raised’ and ‘wild farmed,’ and frequently splurge on higher-end seafood options that they may explain the steps the restaurant takes when sourcing sustainable not choose during the year,” Carline said. seafood,” Freier said.

For many operators, this means they will add a few more dishes There is also a growing interest in global flavors, ethnic cuisine, to their menu, either as appetizers or main dishes, that feature and street foods at the foodservice level – especially those with more luxurious (lobster, scallops, crab) and/or more exotic (octopus, Mediterranean influences. There has been a noticeable spike in calamari, crawfish) seafood configurations. In some cases, chefs find demand for octopus, squid (primarily prepared as calamari), sardines, innovative and appealing ways to combine more than one of these anchovies, and caviar. For restaurateurs already considering an seafoods into a single dish (i.e. Shrimp and Crab Stuffed Flounder, expanded list of small plate or snack offerings on their menus, these and Grilled Cod with Lobster Sauce). options are quite versatile and offer wonderful opportunities for While statistics may indicate that sales are flat today, it is clear culinary creativity, trends surveyors noted. that opportunities to heighten the variety and healthful attributes According to the Seafood Nutrition Partnership, 47 percent of seafood are being pursued with vigor within the U.S. foodservice of Generation Z (individuals born after 1997) believe multicultural sector.

12 | 2019 KEY BUYER INDUSTRY UPDATE

Summer Edition

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POLICY

U.S. market for GE salmon remains uncertain

By Christine Blank

NOT LONG AFTER UNITED STATES and Canadian governments cleared the way for AquaBounty to begin production of its genetically engineered (GE) salmon, industry analysts were debating whether or not there was a viable market for the fish.

Maynard, Massachusetts-based AquaBounty has invested millions of dollars over several years to develop its AquAdvantage Salmon, which it says grows faster than conventional farmed Atlantic salmon and utilizes 25 percent less feed. The producer’s goal is “to raise the world’s finest, most sustainable Atlantic salmon. A fish that is nutritious, delicious, fresh, and affordable,” AquaBounty says on its website.

Even though AquaBounty was formed in 1995, the road to commercialization for its AquAdvantage Salmon has been a long one, marred by regulatory hurdles along with concerns from retailers, foodservice buyers, environmental groups, and consumer organizations.

However, now that the U.S. Food and Drug Administration has lifted its Import Alert on AquAdvantage Salmon, AquaBounty has begun production of the fish at its Albany, 14 | 2019 KEY BUYER INDUSTRY UPDATE

Indiana facility. It expects its first harvest to be ready in the fall of 2020, said Dave Conley, spokesperson for AquaBounty.

In a similar move, Environment and Climate Change Canada approved the company’s Rollo Bay, Prince Edward Island, Canada production facility for the commercial manufacture and grow-out of AquAdvantage Salmon for spring 2019. The first harvest from that facility is also expected in the fall of next year.

Genetically-engineered salmon from AquaBounty’s former facility in Panama has already been sold in Canada. The first sale, encompassing five metric tons, was in the summer of 2017, when unnamed buyers in Canada bought five metric tons at the going rate of traditional farmed Atlantic salmon, according to AquaBounty.

Since then, AquaBounty has sold 10 additional metric tons of its AquAdvantage salmon to buyers in Canada, primarily for use as sashimi and other high-end applications, former AquaBounty President and CEO Ron Stotish told investors at the 20th Annual Global Investment Conference in New York City late last year.

At the conference, Stotish said Canadian buyers were enthusiastic about AquAdvantage, Summer Edition

POLICY

POLICY

“100% North American Raised” b ut consum er and will be a market for it. environmental groups criticized “I do believe there will be a market, but it will start small and the sale, and several Canadian grocery grow gradually,” said Charlie Arnot, CEO of the Center for Food chains, restaurant chains, fish markets, and seafood Integrity in Gladstone, Missouri. “It will require full transparency and wholesalers said they would not sell AquAdvantage Salmon. significant consumer and retailer education, but I believe a market Sobeys, which operates around 1,500 stores across Canada, for the product can be built over time. The key will be transparency, including Loblaws, Metro, and other grocery chains, has pledged it education, effective merchandizing, and a price point that buys will not sell AquAdvantage Salmon. In addition, several restaurant market share.” chains – including Yuzu Sushi, which operates 66 restaurants – A progressive regional retailer that wants to tout farmed salmon have also pledged not to sell it. Canadian seafood importer DOM and AquaBounty as the most sustainable choice, and is willing to International and a number of fishmongers followed suit, vowing partner to promote the significant environmental advantages of not to provide AquAdvantage Salmon. the product and the global overfishing challenges presented by “Now that the GE salmon is somewhere unknown in our other types of salmon on the market, is an example of a buyer that food system, grocery stores find themselves faced with a flood of would support AquAdvantage Salmon, Arnot said. customer questions and confusions,” Lucy Sharratt, coordinator of “This has inherent challenges, as the consumers who would the Canadian Biotechnology Action Network (CBAN), said. “Without find this value proposition most appealing may also be those who mandatory labeling of GE foods, retailers are compelled to give their oppose GMOs, even if they don’t know what it means,” Arnot said. consumers this information.

Arnot also envisions Without this information, that a larger mainstream “While environmental groups don’t believe consumers consumers are shopping retailer that “believes the and most buyers will want to purchase GE salmon, blind, and many are choosing merchandizing and price not to shop for salmon.” point would be attractive some experts believe there will be a market for it.”

In the United States, enough to actually grow Safeway, Walmart, Costco, the category and sell more Whole Foods, Kroger, Target, Trader Joe’s, Aldi USA, salmon, while being transparent and providing and several other U.S. food retailers have made education” is a likely buyer of AquAdvantage public declarations of their intent not sell GE Salmon. Another possible selling scenario is a mass salmon. More than 80 grocery stores in the merchandiser chain that recognizes its shoppers country have said they will not sell it, confirmed are not concerned about GE foods “and sees this Dana Perls, senior food and policy campaigner as an opportunity to enhance their sustainability for Friends of the Earth U.S. profile and offer salmon at a more competitive U.S. foodservice buyers have been quieter price-point,” Arnot said. about whether or not they will buy AquAdvantage Foodservice operators that are focused on Salmon when it is available. Red Lobster is the only portion cost – such as buffets, hotels, and casinos major restaurant chain that committed a few years – may be likely to buy AquAdvantage Salmon as well. ago not to sell it, along with food services and facilities These companies may be willing to be transparent, but are management company Sodexho. “not likely to promote their sourcing unless a meeting-planner or AquAdvantage Salmon is likely to enter the market through guest inquires,” according to Arnot. foodservice channels, many believe. Because the United States To create a market in the United States, AquaBounty will need Department of Agriculture’s labeling standards for genetically to provide consumer research that clearly indicates which consumer engineered foods applies to retailers (and is not yet in effect), segments are likely to be receptive; be willing to be the public face GE salmon does not have to be labeled in foodservice channels. for the product to reduce brand risk for retailers and foodservice It could be served on an airplane, in a dining hall, or elsewhere, operators; and develop and promote effective consumer education Perls said. that is carefully targeted to those who are interested, according “We would expect the salmon to disappear inside foodservice to Arnot. somewhere, rather than be used by a restaurant chain, for example, “I think transparency is absolutely mandatory… They will need that can be more easily approached by individual consumers and to work with their customers and the food system to understand and called to account for their decisions,” Sharratt added. meet expectations. Nothing will undermine successful introduction While environmental groups don’t believe consumers and most more than if it appears the company is not transparent and willing buyers will want to purchase GE salmon, some experts believe there to provide the information consumers want,” Arnot said.

16 | 2019 KEY BUYER INDUSTRY UPDATE

Summer Edition

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Fetching fish: Seafood suppliers benefit from high-protein pet food demand

By Christine Blank

SALES OF PET FOOD, SUPPLEMENTS, and other pet care products are growing at an astounding rate, and the seafood industry is benefitting.

Total spending on pet food and treats in 2018 reached USD 30.3 billion (EUR 27 billion), according to the American Pet Products Association (APPA), while overall pet care spending soared 4 percent to reach a record USD 72.6 billion (EUR 65 billion) last year.

The stats paint a clear picture: More pet owners, especially millennials, are fetching healthy, natural, high-protein food and treats for their furry family members.

“Millennials continue to be the largest pet-owning demographic and this shows in the data,” said Bob Vetere, the president and CEO of APPA. “We know this generation is willing to pay more for quality products and services to improve the health and well-being of their pets. Today more than ever, pet owners view their pets 18 | 2019 KEY BUYER INDUSTRY UPDATE

“We know this generation is willing to pay more for quality products and services to improve the health and well-being of their pets.”

as irreplaceable members of their families and lives, and it’s thanks to this that we continue to see such incredible growth within the pet care community.”

The latest figures from global information and measurement company Nielsen corroborate the APPA’s findings. According to the firm, U.S. consumers spent USD 33 million (EUR 30 million) on pet food with human-grade products over the past year.

“Regardless of whether in human food or pet food, consumers are looking for exceptional products that fulfill a purpose, offer superior value propositions, and connect on a personal level,” stated a Nielsen report.

Thanks to this increased demand, pet food manufacturers such as Purina, Simpy Nourish, Blue Buffalo, WellPet, and others Summer Edition

R E TA I L

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other companies, such as PolkaDog.com, and markets its own brand of Cod Crunchies Pet Treats. The treats won the Beyond the Plate division in the 2018 Alaska Symphony of Seafood competition.

In addition to nutritional benefits such as omega-3 fatty acids, one pet food company is making more natural seafood pet food and treats to cater to pets that have sensitivities or intolerances to other proteins. “Some pets are sensitive to land protein sources like beef, turkey, or boar, so our salmon, tuna, or whitefish flavors are a great alternative to provide the pure protein pets crave without triggering are purchasing more seafood, allergies or upsetting sensitive “Raw and freeze-dried food and treats are becoming usually of the sustainable stomachs,” said Chanda Learyvariety.

Coutu, director of consumer increasingly popular because of ‘a focus on serving “We continue to see pet experience and marketing for up protein-rich diets full of natural meats without food trends mirror human Tewksbury, Massachusettsfillers, and pet parents’ desire to mix up mealtime food trends,” said Joe Toscana, based WellPet. for their pets with more flavor and nutrients.’” vice president and director of The company’s seafoodindustry relations at St. Louis, containing products include Missouri-based Purina. “Just as Wellness CORE 100% Freeze people are looking for foods that are marketed as ‘better for you,’ Dried Treats in salmon flavor for dogs, and Wellness CORE Tiny including natural, fresh ingredients, high-protein, grain-free, etc., Tasters in tuna and salmon flavors for cats. they tend to look for similar cues in their pet’s food as well.”

Raw and freeze-dried food and treats are becoming increasingly Purina sells a wide variety of seafood-containing pet foods popular because of “a focus on serving up protein-rich diets full and treats, including its new regionally-sourced Beyond line. “Fish of natural meats without fillers, and pet parents’ desire to mix are a natural, rich source of protein and nutrients for pets. The fat up mealtime for their pets with more flavor and nutrients,” Learyand omega-3 fatty acids in fish help give pet’s healthy skin and a Coutu said. soft, shiny coat. The protein and amino acids in fish help build and In fact, air-drying/dehydrated full meal pet food sales have maintain pet’s muscles,” Toscana said. more than doubled over the past three years, growing from USD The Alaska-sourced cod, tuna from the Pacific, and hake from 23 million (EUR 21 million) in 2015 to USD 53 million (EUR 47 million) the U.S. Pacific Northwest in Purina’s Beyond line are from Marine in 2018, according to Nielsen.

Stewardship Council-certified sustainable sources, according “Consumers are attracted to freeze- and air-dried pet to Toscana. Seattle, Washington-based Alaskan Leader Seafood foods because they’re usually free of added preservatives and Company is the exclusive supplier of the sustainable Alaska cod used many offer enhanced benefits, such as improved digestion, shinier in the Beyond line and several other Purina pet products. coat, smoother skin and stronger immune system,” the data “We supply them with MSC-certified cod that we don’t use firm said. on the boats, and they make super nutritious pet food with it,” Similar to human foods, sales of “natural” and “organic” pet food said Keith Singleton, president of Alaskan Leader’s value-added and treats are also soaring. “In general, consumers have become division. “It keeps with our whole mission statement of having 100 more interested in the natural category as they have become more percent utilization of our fish, including skins, trims, heads, fillets, educated about ingredients and sourcing. Pet parents want to be and portions.” able to look at a pet food label and understand the ingredients Alaskan Leader has been supplying an increasing amount of listed,” Leary-Coutu said. cod to Purina every year for the past four years, thanks to consumer This confluence of a variety of human food trends, including demand. “Pet owners are very conscientious about what they feed a shift to more high-protein, healthy, natural, and sustainable their pets. They are an extension of their families, and Purina is diets, is impacting the pet food market. And the healthy pet food making recipes that adhere to effort,” Singleton said. movement is not just a fad – it will last well into the future, Singleton Alaskan Leader also produces private-label cod pet treats for predicted.

20 | 2019 KEY BUYER INDUSTRY UPDATE

Summer Edition

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CONSUMER INSIGHTS

Tortuga Music Festival’s Green Gourmet tunes into seafood consumers FROM 12 TO 14 APRIL, 2019, music enthusiasts from across the United States and beyond arrived in Fort Lauderdale, Florida for the Tortuga Music Festival to hear their favorite harmonies and to try some tasty seafood courtesy of the Rock The Ocean Foundation’s Conservation Village.

Comprised of a collective of more than 30 seafood related businesses and organizations specializing in ocean conservation, the Conservation Village featured five tents focusing on Rock The Ocean’s core issues: overfishing, shark conservation, coral reef degradation, marine pollution, and turtle conservation.

Hand-selected experts from relevant fields and sectors were stationed at each tent to educate and engage festival-goers about ocean health and seafood sustainability.

Green Gourmet, a space reserved for South Florida chefs to showcase their culinary talents while preparing responsibly-sourced seafood, was also located within the Conservation Village for the sixth consecutive year in 2019. According to Adriana Sanchez, the sustainability advocate and Seafood Ninja founder who has helped Green Gourmet and the Rock The Ocean Foundation’s Conservation Village come to fruition each year, the event serves as a profound learning opportunity 22 | 2019 KEY BUYER INDUSTRY UPDATE

PHOTO CREDIT: PETER ADAME, MONTEREY BAY AQUARIUM SEAFOOD WATCH

By Madelyn Kearns

for the modern consumer.

“Attendees get to experience the most fun, educational and interactive collection of conservation organizations, they learn about issues facing our world’s oceans, how they can help, and see firsthand how a portion of proceeds from the festival are making a difference,” Sanchez said.

SeafoodSource interviewed Sanchez to learn more about the history of the event and the insights it provides to seafood providers and distributors as they move

through 2019 and into the future.

SeafoodSource: What is Green Gourmet and what is its mission?

SANCHEZ: Since 2014, the Green Gourmet has served as a space where South Florida chefs can showcase their culinary skills using responsibly-sourced seafood and help connect consumers with sustainable seafood options.

It has been quite a journey that started when Tony Fins, then working with the Guy Harvey Ocean Foundation, invited Sea Summer Edition

CONSUMER INSIGHTS

Delight to sponsor the seafood used by the chefs they were working with in 2014. I was the sustainability director at Sea Delight at this time, and continued to organize the event through the Sea Delight Ocean Fund until 2017, showcasing products sourced from fishery improvement projects (FIPs) or that were Green- or Yellow-rated by the Monterey Bay Aquarium Seafood Watch program. Since 2018, Seafood Ninja, Inc. has been collaborating with Seafood Watch to bring Green-rated Best Choice Products sponsored by their business collaborators to the Green Gourmet.

SeafoodSource: What kind of questions do you typically get from consumers/concertgoers at the Green Gourmet? And what kind of conversations usually transpire at an event like this?

SANCHEZ: During these events, it’s not uncommon to hear comments like: “I don’t eat farmed seafood” or “I only eat wild-caught.” My answer is always the same: “Not all farms are created equal.” But what does this mean to people?

This year, two of our seafood sponsors were Atlantic Sapphire, a farm-raised salmon producer, and Riverence, a spring-water steelhead trout farm. Atlantic Sapphire’s revolutionary Bluehouse system in Denmark is the equivalent of a greenhouse, where fish are given ideal conditions to thrive.

Meanwhile, Riverence’s recirculating aquaculture system (RAS) facilities maximize natural water resources and capacity through technology, raising eggs in Washington state and then safely transporting them to grow-out farms located along the Snake River in Idaho’s Magic Valley. Working with farms that are rated Green, or “Best Choice,” by the Monterey Bay Aquarium Seafood Watch program provides all of us organizing Green Gourmet with an opportunity to 24 | 2019 KEY BUYER INDUSTRY UPDATE

“Antibiotic-free.

Hormone-free.

Rich in omega-3s.

Sustainable.

These are the statements that made a difference for these concertgoers and brought them to the table to taste the product, we believe.” engage concertgoers in a different kind of conversation.

We engaged concertgoers with Riverence’s trout products in a new way.

We asked: “What if I told you, this trout is farm-raised in Idaho? Antibiotic-free, hormone-free, zero pesticides, rich in omega-3s and is Green-rated ‘Best Choice’

by Seafood Watch?”

We had the same conversation about Atlantic Sapphire: “What if I told you, this salmon is farm raised in Denmark? Antibioticfree, hormone-free, zero pesticides, rich in omega-3s and is Green-rated ‘Best Choice’

by Seafood Watch?”

Antibiotic-free. Hormone-free. Rich in omega-3s. Sustainable. These are the statements that made a difference for these concertgoers and brought them to the table to taste the product, we believe.

SeafoodSource: What kind of response did you receive from consumers after positioning seafood in this way?

SANCHEZ: The range of responses we received from consumers at the event was encouraging: “It’s delicious!”; “Is this really trout?”; “I’m surprised it’s not fishy.”; “Where can I buy it?”

This last question was the gamechanger for us: “Where can I buy this

product?” We had worked so hard getting people to the table and trying these amazing products and, through engagement, we were able to shape their negative perceptions about aquaculture – but we couldn’t tell them where to buy it here in South Florida. This was a missed opportunity.

SeafoodSource: What were some of your main takeaways from this year’s Green Gourmet event?

SANCHEZ: Consumer engagement is key and being able to provide them with access to sustainable seafood choices is the next step. In the current sustainable seafood landscape, retailers have made big strides in sourcing more responsibly and making specific commitments to sustainable seafood. Yet, they have not always been successful at engaging consumers.

For retailers, there is the issue of high turnover rates of employees at the seafood counter, which makes training of employees about seafood sustainability challenging. At the retail level, they are also concerned with confusing customers when using labels to convey sustainability. Truth is, seafood is such a small percentage of store revenue for many retailers so that they don’t always see a return on investment.

However, building a loyal consumer base, though challenging, is possible if retailers take opportunities like this one to engage their customers and create opportunities for them to ask questions about the seafood they are purchasing. Then they will feel confident it’s good for them and good for the planet.

Next year, we hope to partner with a retailer so that we can let consumers know exactly where they can find the products featured at the Green Gourmet and hopefully continue the sustainable seafood conversation beyond this event.

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SPOTLIGHT ON

COMING TO AMERICA:

British heritage shines stateside for Young’s Seafood

By Madelyn Kearns

FOR OVER 200 YEARS, Grimsby, United Kingdom-based company Young’s Seafood has been diligently forging a brand that could withstand the test of time.

What started out as a whitebait business in 1805 has, two centuries later, transformed into the largest specialist seafood brand in the United Kingdom.

Young’s Seafood dominates the U.K.’s USD 1.4 billion (EUR 1.2 billion) fish and chips market, delivering 17.3 percent of all seafood servings comprising the segment, it says.

The company is also responsible for the invention of scampi in 1946, according to its website, as well as marketing the very first frozen prawns.

As with most pioneers, new frontiers have long beckoned Young’s Seafood to seek out potential opportunities wherever they may arise, at home and beyond. “We’ve always had an ambition to take the brand outside of the United Kingdom,” confirmed Yvonne Adam, the marketing director for Young’s Seafood.

However, Young’s has learned the timing must be right in order to act, particularly when contemplating breaking into completely new international markets.

While attending Seafood Expo North America in Boston, Massachusetts a few years back, the stars seemed to finally align for Young’s Seafood regarding its U.S. aspirations, Adam recalled. That’s when Young’s representatives first met with The Fishin’ Company, a seafood supplier based out of Munhall, Pennsylvania, to seriously discuss the possibility of distributing its British brands across the key North American marketspace.

The partnership between the two companies became official in September 2017, with Young’s Seafood Heritage- and Signature-branded products starting to hit shelves in the United States – with The 26 | 2019 KEY BUYER INDUSTRY UPDATE

Fishin’ Company’s help – in January 2018.

It was, and remains, an ideal relationship, Adam said.

“We have a joint venture with The Fishin’ Company, they do the distribution of [Young’s] products in the United States.

They are a highly-respected [seafood] company with great relationships with consumers,” she said. “It’s been a perfect cultural fit for them to partner with us from a brand point-of-view because they’re predominantly a private-label business, so for them to be working with the U.K.’s number-one brand, I think we’re really doing some exciting things together… developing and bringing brilliant seafood to the U.S. market. They’ve been a great partner for us.”

Currently, Young’s Seafood products are being sold at over 2,000 distribution points across the United States, Adam said, by many prominent retailers including Walmart, Sam’s Club, Giant, Martin’s, Stop & Shop, Jewel-Osco, Peapod, and Food Lion.

The products available from Young’s in the U.S. include: Wild Caught Cod Fillets in Beer Batter, Wild Caught Haddock Fillets, Flipper Dippers and Crispy Battered Cod and Chips, Wild Caught Chunky Haddock Fillets in Light Crispy Batter, and Wild Caught Chunky Cod Fillet Fingers in Light Tempura Batter. According to Adam, the response to these products has been “really positive.”

“Consumers really enjoy the quality proposition from Young’s, the number one brand in the U.K. Being able to bring that expectation to a completely different U.S. market – we’re not taking that lightly.

We’re beginning to understand and drive innovation with things that we’re working on in the U.K. and testing them here and seeing what U.S. consumers like,” she said.

“People want to have something that tastes good. Ultimately, however much

you spend on your food, if it doesn’t taste good, then you’re not going to want to buy it again. More than anything else, we’re really pleased with the consumer feedback about the taste of the products and we’re really delighted about the expansion in distribution,” she added.

One standout product from Young’s Seafood that is doing well among American eaters – and continues to do so around the holidays and during celebrations – is the Crispy Battered 2 Cod Fillets and Chips, which started out as a meal for one until the company dialed into the trend of convenient, communal eating that is now sweeping the United States, Adam said.

“U.S.A. consumers love the crispiness and the quality of the batter, and the unique flavor of that,” she noted. “They love having a meal with the chips inside, so this British Fish and Chips Heritage has worked really well [in the U.S. market].

In America, Young’s has also been committed to providing and promoting pollock in its products. The company is working to convey pollock as a good source of omega-3 fatty acids – but in a different fashion than it is accustomed to in the United Kingdom. “We’ve also been able to focus on the delivery of pollock,” noted Adam. “We’re trying to be transparent and also celebrate the fact that pollock is a good source of omega-3s. There’s different legislation in the U.S. than in the U.K., where omega-3 might be in the name of the product – we might talk about ‘Omega-3 Fish Fingers’ [in the U.K.] – but we have to adapt that to a U.S. legislation point-of-view to be ‘a source of omega-3s,’ rather than have it be in the headline of the product.”

“We’re celebrating the fact that we’ve got pollock in the pack, and putting that on the packaging as well,” she said.

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