5 FY 2019 - 2020 UES APPLICATION (JULY 1, 2019 TO JUNE 30, 2020) NORTHERN EUROPE (EUN) - Alaska Seafood Marketing Institute (ASMI) Denmark ...
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5
Alaska Seafood Marketing Institute (ASMI)
FY 2019 – 2020 UES APPLICATION
(JULY 1, 2019 TO JUNE 30, 2020)
NORTHERN EUROPE
(EUN)
Denmark, Finland, Ireland,
Sweden, the Netherlands, United Kingdom
1
FY 2018-2019 UNIFIED EXPORT STRATEGY
Market Assessment Worksheet
Market: (EUN) EUROPEAN UNION, NORTHERN
Commodity Aggregate: SEAFD – Fish & Seafood
1. Market Assessment Update
A. Executive Summary
Following an unsettled 2016, 2017 saw much of the political attention in Europe turn to ‘Brexit’
negotiations between the UK and the EU. This complex process proved as challenging as
expected with much pressure on the negotiations over the ‘divorce’ payment before talks finally
moved onto trade negotiations. This caused political instability in the UK with a snap election
taking place in June. The Conservative party lost their majority and were forced to form a
Government with the support of a minority party.
The final ‘removal’ date for the UK remains March 2019, with a transition period of up to two
years. In the Netherlands election in March 2017, the far-right party was unsuccessful in
securing an anticipated majority and the resulting economy grew strongly.
The economic uncertainty witnessed throughout 2016 progressed through 2017 but forecasts
are for 2018 to be less volatile.
The current position is that the UK will leave the EU in March 2019 and will not be in a position
to enter trade talks with other nations until withdrawn. Further complexity is brought to the
table by the UK’s desire for a two year transition period which has still to be agreed. The full
process for Brexit is shown below.
2
3
Key Economic and Political:
Political stability has returned to large parts of Europe with the Right Wing factions in France
and the Netherlands being defeated in 2017 elections. In Germany however, Mrs. Merkel has
so far failed to establish a coalition and there are many commentators who believe she will not
survive this latest crisis. As the largest economy in Europe and the EU, instability in Germany
clearly has implications for the smaller nations and many Europeans are nervous that a further
election will be required.
Within Scandinavia, the next elections will take place in Sweden in 2018 with Denmark and
Finland following in 2019. Modest economic growth seems to be returning across the region
although unemployment remains higher than the European average.
Elections took place in The Netherlands in March 2017, with the liberalist government being
returned and the expected swing to the right, strong anti-Islamic views, and increasing
Euroscepticism not materializing due to an exceptionally high voter turnout. The UK elections
are set for 2020.
Economic Outlook No
102 November 2017
Variable GDP growth
Frequency Annual
Time 2013 2014 2015 2016 2017 2018 2019
Country Unit
Denmark % 0.935 1.616 1.606 1.967 2.180 1.991 2.026
Ireland % 25.50
1.628 8.305 1 5.136 3.643 2.717 2.201
Netherlands % -0.121 1.419 2.260 2.145 3.251 3.097 2.368
Sweden % 1.222 2.709 4.276 3.071 3.052 2.813 2.338
United Kingdom % 2.052 3.054 2.346 1.794 1.522 1.237 1.063
United States % 1.677 2.569 2.862 1.485 2.246 2.544 2.147
Data extracted on 1 February 2018 from
OECD.Stat
4OECD forecasts for the European area are that GDP growth will remain relatively strong due
to the ongoing recovery of global trade. Growth will continue steadily with the labor market
continuing to improve and employment across the EU.
Revised forecasts for 2019 show the weakness in the UK market with resulting growth
prospects reflected by currency depreciation. Monetary policy continues to try to mitigate
shocks to the system by attempting to stabilize markets and increase interest rates for the first
time in more than 10 years. This projection assumes the United Kingdom will operate with a
most favored nation status after Brexit in 2019, but this remains uncertain. Higher inflation
with increased food prices due to the price of imports is projected to hit households’ purchasing
power. As growth slows, the unemployment rate is projected to rise.
Confidence among British consumers fell to -13 in December 2017 from -5 at the start of the
year. Brexit uncertainties together with an awareness of price increases and likely job
instability reduced willingness to make major purchases.
British consumer prices including housing, believed to be the most accurate measure of
inflation (CPIH) rose +2.7% in the year to December 2017, up from +1.8 in the year to
December 2016. The primary drivers of price increases in 2017 came from food, housing and
5related services and transport all of which are impacted by higher import prices due to
currency weakness.
Showing lows of 1.21 in spring 2017, the £:$ exchange rate rebounded in 2017 showing more stability
in the final quarter and reaching 1.40 in early January 2018 with analysts expecting this rally could
continue throughout 2018.
The Dutch economy expanded more slowly than a year ago, posting growth of 0.4% percent
during the third quarter of 2017. At the end of the third quarter, the economy posted its
fourteenth straight quarter of growth. Private consumption remained solid, supported by
employment gains. It is expected that the full year data will show the fastest expansion in the
Netherlands for a decade. Dutch consumer confidence, which has been positive in the last three
years stood a 25 in December 2017, as consumers' opinion toward the economic climate was
6virtually unchanged. Domestic demand is expected to drive growth in 2018/19 with the fiscal
stimulus plan expected to boost household spending.
The Swedish economy continues to look strong with consumer prices increasing 0.4% in
December in line with market expectations. Industrial production figures were solid and
business sentiment showed broad-based optimism across sectors. This rosy outlook has
bolstered the labor market which has seen sustained job creation and the lowest unemployment
rate since 2008. This comes after GDP growth in the quarter to September 2017 of +0.8%,
matching market expectations. Growth was driven by capital investments with household
consumption softening slightly.
The Irish economy expanded 4.2% percent in the third quarter of 2017, following an upward
revised 2.7 percent growth in the previous period and well above market expectations of 1.4
percent. This was the strongest pace of expansion in almost a year, boosted by a rebound in
household consumption and a positive contribution from net exports. Unemployment has
continued to decline, and in January 2018, was at 6.1% compared with 7.2% the previous year.
Consumer confidence has decreased by 0.4 points to 103.2 in December 2017, retreating for
the third month following an 18-month high in September 2017.
Key Seafood Trends and Events:
Price inflation has been the key issue for the seafood sector in 2017, with prices continuing to
increase ahead of other proteins. Drivers for this include currency instability, increased fuel
costs and in some instances labor cost increases.
7Atlantic Salmon.
NEU countries rely heavily on imported seafood (EU 55%, UK 80%). Nielsen data at
December 2017 shows average price per unit increases of 7.3% compared to a food price
inflation of 3.9%. For many consumers, this underlines their established perception that
seafood is the most expensive protein. This increase in price is impacting unit (-3.4%) and
volume sales (-3.6%). These price increases are less acute in the frozen sector where price
increases are more in line with food inflation at +4.3%. This has had a marginally positive
increase in the frozen category where unit sales are flat.
The frozen category, a long-term destination for Alaska seafood, has shown a value sales
increase in 2017 although volume sales continue to fall. Consumers are purchasing less
frequently than previously, making frozen seafood purchases less than monthly. Pollock
volumes are showing a marginal uptick potentially as a consumers look for value-based
alternatives - pollock being 40% cheaper than cod, on average.
Within the eating out sector, spend and number of visits has increased driven by the quick
service sector. In areas where homemade alternatives can be consumed (e.g. work and
8education sectors) both visits and spend are declining. Overall seafood servings have increased
by 2.2% surprisingly given the reported foodservice inflation in seafood of +23%.
9B. General Assessment
Currency movements remain a key factor in trade flow changes between 2014 and 2017. The
following table compares the average exchange rate over a 12 month period:
USD / EUR USD / GBP USD / DKK
2014 0.754 0.607 5.618
2015 0.901 0.654 6.722
2016 0.940 0.810 7.010
2017 0.887 0.777 6.59
Value gain $ from 2014 vs 2016 24.6% 33.4% 24.8%
Value gain $ from 2014 vs 2017 17.6% 28.0% 17.3%
Recovery 2017 vs 2016 7% 5.4% 7.5%
Although having made a recovery since 2016, the currency impact in 2017 remained
significant, mostly in the UK market.
The shift towards discounted retails in the UK continues apace with Lidl and Aldi’s combined
share growing by 80% since 2013. Jointly they have permanently changed the dynamics of the
grocery market by forcing down margins and offering choice and value in easily accessible
stores. Meanwhile, Tesco and Sainsbury, and to a lesser extent Asda, are left with a portfolio
of stores which simply do not meet shoppers needs - shoppers are returning to smaller basket
sizes to manage budgets and out of town hypermarkets designed for monthly shops just do not
deliver. Lidl and Aldi have also continued to expand their range of chilled and luxury products,
delivering ranges which accommodate local needs where possible.
The retail sectors across the other NEU countries remain more stable with the small numbers
of retailers focused on value. Here, seafood ranges can extend over a broader range of species
but formats tend to be more limited and focused on natural products due to increased
acceptance and cooking skill.
Throughout the region, the communication and promotional activities of the larger retailers
continue to be disrupted by the discount retailers, causing reconsideration on store strategy,
product catalog, long-term pricing, and promotional practices. The larger retailers have been
10forced into rationalizing ranges, especially in non-core products, in order to remain
competitive.
In turn, shopper loyalty has diminished, and price has become the key driver - the emphasis
being on the price paid per item as opposed to bulk based BOGOF or TWOFOR style offers.
In larger stores, the chilled seafood counter is used as a destination for shoppers even if they
choose not to shop for it.
Retailers are continuing to invest in staff training for these areas in store as they struggle to
find points of differentiation from the discount operators although it is questionable to whether
this strategy will result in increased sales from this part of the store. History would suggest
that there is little correlation between trained staff and increased propensity to purchase
seafood.
The Northern European seafood market remains mature and any growth strategy requires
product differentiation through attributes known to be meaningful at a consumer level - value,
ease and flexibility of use, quality and positive sentiment. NEU is an important destination for
Alaska seafood, accounting for 8% of seafood imported directly - a total of 88,500 metric tons
and $276,800m.
Overall direct imports into NEU are outperforming, the total exports being up 22% in volume
and 16% in value versus performance for total Alaska product of +11% in volume value terms.
Attention is required to be given in particular to product development of the canned salmon
sector which is in significant decline and risks of delisting remain high.
In terms of volume, seafood sales at UK retailers contracted by -3.6% in the year to December
2017 with value sales increasing +3.6% due to a price increase of +7.5% across the category.
Chilled seafood declined in volume by -2.5% with value increasing by +3.6% and accounted
for over 50% of total unit sales.
Frozen seafood saw a +5% increase in value with volume dropping back marginally -0.9% with
unit sales flat. The ambient seafood category which has struggled due to price increases, range
reductions, and consumer disinterest, declined in volume terms by -9.9% but price increases of
+12.1% per kg delivered a value sales increase of +1.0%.
Salmon remains the most popular species despite a decline in volume of -10.6% in total,
accounting for a little over 51K metric tons up 3.1 percent and 0.2 percent in volume and value,
respectively, year-on-year.
11Chilled salmon, 81% of salmon volume, saw prices increase by 16.6% per kg to just under
£20k/kg - this increase begins to exclude salmon from price based multi-buy promotions where
it has worked hard to earn its place. Volume declines would continue to be expected.
Tesco and Sainsbury’s have managed to control their sales decline through large range
refreshes and share of trade for both has almost returned to its position in 2015. Morrisons,
Asda and Marks & Spencer lost share in 2017. This is the first share loss seen by M&S in some
time and a result of the increase in salmon prices which have tipped into ‘too expensive’ for
many consumers. Lidl and Aldi have delivered share gains and their combined share makes
them bigger than Sainsbury.
While last year we were happily reporting volume stability in the canned salmon sector, 2017
has been a tough year with total volume declining in ambient by -9.9% and salmon declining -
21.0%. Fewer people buying less canned salmon, less often made for a perfect storm for the
subcategory. Price increases of +16.9% per kg make canned salmon more than double the price
of canned tuna and almost the same price as chilled haddock. Inevitably with this level of
performance, retailers may be expected to undertake significant range reviews to cull
underperforming SKUs.
Understandably, retailer rationalization is a threat to partners such as John West investing to
develop new and exciting products to encourage traffic down this aisle in store and increase
the propensity to purchase.
Although price levels and pressure on disposable income are beginning to change shopping
behavior, chilled seafood remains the category which is seen to be delivering quality, and
innovation and meeting shopper needs. Frozen and canned products are not associated with
positive sentiment in the same way - with both being perceived to deliver sub-standard seafood
which lacks innovation or excitement to shop or cook. This remains challenging for Alaska
pollock and budget products, such as pink salmon, and focus has turned to encouraging the
introduction of more chilled products which meet more needs more often.
ASMI activities continue to divert consumer attention away from price-based activities by
adding value through positive, origin-related consumer promotions supported by a recipe/dish
and sustainability inspired social media strategy. Trade support works directly with key
businesses in developing new business opportunities, making new introductions with suppliers
from Alaska, and promoting the wild, natural, and sustainable image of Alaska seafood. Direct
financial trade support has been strategically focused on mainstream businesses operating in
the frozen, canned, and chilled (refreshed) sectors.
The retail sector generally recognizes and appreciates the Responsible Fisheries Management
(RFM) program but a preference for Marine Stewardship Council (MSC) certified remains.
12Consumer awareness of sustainability labels and schemes remains lackluster although this is
expected to change in 2018 due to an intensified focus on ocean plastics and associated waste
and ocean damage by vocal consumer groups and the mainstream media. The issue of
microplastics and their consumption by ocean creatures is a small leap from ‘the fish you eat
are eating plastic.’ Although this is not directly relevant to seafood purchasing, an increased
interest in anything ‘ocean’ based is highly likely to peak interest in the broader subject of
ocean health, fish mortality and potential pollution of seafood products.
Traditionally in NEU countries, the majority of consumer demographics continue to divest
themselves of responsibility for seafood, passing the responsibility onto their retailer or
restaurant of choice. However, due to the mainstreaming of these issues, it is anticipated that
this could change.
Continued campaigning by NGO groups and wider bodies to procurement in particular in
foodservice and out of home teams is resulting in changes to the products on the menu. The
Marine Conservation Society ‘Good Fish Guide’ calling on retailers and foodservice operators
to remove red-listed species is expected. This refers to the Marine Conservation Society Good
Fish Guide avoid list which is updated regularly. In the UK, ASMI maintains open and frank
sourcing discussions with procurement personnel in order to address issues before they result
in delisting.
The wider issue of social ethics has become a relevant for the seafood industry, particularly in
the UK. Here, retailers remain concerned that the potential risk to their reputation by stocking
products which may be associated with bad ethical practice is high. The area of social ethics
moves the question beyond the methods and management of the catching sector and into labor
13and workplace practices beyond that of the ‘fish.’ Labor conditions on the vessel and in
processing plants are likely to be subject to scrutiny moving forward with the latest MSC
consultation now actively considering the inclusion of ‘social ethics’ within it. In the UK, the
Modern Slavery Act 2015 required businesses with a total turnover of £36m ($51.2m) to
publish an annual statement which sets out the steps they have taken to ensure slavery and
human trafficking are not taking place in their supply chains or any part of their business. This
scrutiny of full supply chains will continue to intensify in 2018/19.
C: Export Data
Exports to NEU have increased over the past year in volume and in value representing 10.6%
and 11.2% of all ASMI exports respectively. This is an increase of 22% and 25% year on year.
Within NEU there has been a shift in volume and value away from the UK towards NL due to
changes in routes to market for frozen pollock together with dramatic changes in UK canned
market. It is challenging to analyze product movements from NL to the UK due to data coding,
a lag effect in timeframes and stock holding changes. However, it is anticipated that there is a
correlation between the declines in UK direct pollock imports with the growing NL statistics.
Impending Brexit trade barriers may make these issues more pronounced as importers and
exporters seek the most efficient routes to market bearing in mind these may not be heavily
utilized today.
Examining data to July 2017, the exports via China declined -28.6% with declines across all
species except Alaska pollock where the UK showed a marginal increase and the Netherlands
+34% in volume terms.
As with direct supply into NL, it is anticipated that much of this volume is distributed through
Europe. The UK remains the largest market for the China supply route with Denmark, Ireland,
Finland insignificant in both volume and value terms.
Cod is the largest species exported to NEU countries via China although it has declined by one
third in the year to July 2017 although the price per ton has increased +8%.
14Alaska Seafood Exports
To Northern Europe 2016/2017
2016 2017 % of Change
MT Val. (000) MT Val. (000) Volume Value
Other Shellfish & Miscellaneous
Clam 0 $ - 0 $ - - -
Geoduck 0 $ - 0 $ - - -
Octopus 0 $ - 0 $ - - -
Oysters 0 $ - 0 $ - - -
Scallops 70 $ 533 0 $ - -100% -100%
Sea Cucumber 0 $ - 0 $ - - -
Sea Urchin 0 $ - 0 $ - - -
Shrimp 0 $ - 0 $ - - -
Squid 22 $ 35 0 $ - -100% -100%
Seaweed 0 $ - 0 $ - - -
Other/NSPF 0 $ - 0 $ - - -
Subtotal 91 $ 568 0 $ - -100% -100%
Crab
King Crab (Frozen) 10 $ 330 7 $ 265 -27% -20%
King Crab (Other/Live) 0 $ - 0 $ - - -
Snow Crab (Frozen) 2 $ 14 1 $ 17 -42% 19%
Snow Crab (Other/Live) 0 $ - 0 $ - - -
Dungeness Crab 0 $ - 0 $ - - -
Other/NSPF Crab 0 $ - 0 $ - - -
Total Crab 11 $ 344 8 $ 282 -29% -18%
Salmon
Chinook (Frozen H&G) 128 $ 856 113 $ 358 -12% -58%
Chum (Frozen H&G) 1,325 $ 3,098 952 $ 3,315 -28% 7%
Coho (Frozen H&G) 328 $ 2,316 429 $ 1,895 31% -18%
Pink (Frozen H&G) 263 $ 716 558 $ 1,206 112% 68%
Sockeye (Frozen H&G) 1,606 $ 10,539 2,157 $ 15,414 34% 46%
Other/NSPF (Frozen H&G) 30 $ 217 14 $ 137 -54% -37%
Canned Chum 146 $ 444 171 $ 610 17% 38%
Canned Pink 4,486 $ 15,780 1,482 $ 5,964 -67% -62%
Canned Sockeye 3,145 $ 21,111 2,989 $ 16,858 -5% -20%
Other/NSPF (Canned) 4,170 $ 16,138 2,885 $ 13,464 -31% -17%
Other/NSPF (Roe) 70 $ 1,983 116 $ 1,806 66% -9%
All Fresh H&G 6 $ 42 2 $ 4 -63% -91%
All Fresh Fillets 4 $ 64 35 $ 465 849% 625%
All Frozen Fillets 1,656 $ 15,041 2,582 $ 18,565 56% 23%
All Smoked 15 $ 272 1 $ 18 -96% -94%
All Other Products 1 $ 10 116 $ 494 21072% 5036%
Total Salmon 17,376 $ 88,626 14,601 $ 80,573 -16% -9%
Herring
Herring (Roe) 0 $ - 0 $ - - -
Herring (Frozen) 0 $ - 0 $ - - -
Herring (All Other) 0 $ - 0 $ - - -
Total Herring 0 $ - 0 $ - - -
Groundfish
Pollock (Frozen Fillet) 35,016 $ 95,716 54,187 $ 142,191 55% 49%
Pollock (Frozen H&G) 1,338 $ 3,242 1,039 $ 2,373 -22% -27%
Pollock (Roe) 0 $ - 601 $ 6,580 - -
Pollock (Surimi) 3,328 $ 8,743 5,151 $ 12,362 55% 41%
Pollock (Mince) 2,022 $ 4,532 646 $ 1,319 -68% -71%
Pacific Cod (Frozen H&G) 6,101 $ 18,599 3,616 $ 11,786 -41% -37%
Pacific Cod (Frozen Fillet) 40 $ 101 52 $ 143 30% 41%
Pacific Cod (Dried/Salted) 0 $ - 0 $ - - -
Pacific Cod (Mince) 0 $ - 0 $ - - -
Sablefish 131 $ 2,494 248 $ 4,299 89% 72%
Rockfish 0 $ - 0 $ - - -
LingCod 0 $ - 0 $ - - -
Atka Mackerel 0 $ - 0 $ - - -
Shark/Dogfish 22 $ 120 0 $ - -100% -100%
Other/NSPF (Frozen Fillet) 0 $ - 0 $ - - -
Other/NSPF (Frozen H&G) 0 $ - 0 $ - - -
Other/NSPF (Mince) 463 $ 901 465 $ 920 0% 2%
All Other Products 0 $ - 67 $ 195 - -
Total Groundfish 48,460 $ 134,448 66,071 $ 182,167 36% 35%
Flatfish
Halibut 0 $ - 0 $ - - -
Greenland Turbot 0 $ - 0 $ - - -
Sole 38 $ 91 0 $ - -100% -100%
Plaice 0 $ - 0 $ - - -
Skates 0 $ - 0 $ - - -
Other/NSPF Flatfish 9 $ 40 0 $ - -100% -100%
Total Flatfish 46 $ 132 0 $ - -100% -100%
NSPF and By-Products
Composites (Sticks) 281 $ 1,153 33 $ 235 -88% -80%
NSPF (Frozen H&G) 0 $ - 0 $ - - -
NSPF (Livers/Roe) 0 $ - 0 $ - - -
NSPF (Mince) 6,232 $ 11,984 7,769 $ 12,786 25% 7%
NSPF (Surimi) 99 $ 286 0 $ - -100% -100%
Fish Meal 0 $ - 0 $ - - -
Fish Oil 0 $ - 0 $ - - -
All Other NSPF & By-products
Total NSPF & By-Products
42
6,653
$
$
769.5
14,192
42
7,844
$
$
826.5
13,847
-1%
18%
7%
-2%
15
Total 72,639 $ 238,310 88,525 $ 276,868 22% 16%
Source: NMFS export dataSpecies by Species Assessment:
ASMI’s mission is to increase the economic value of Alaska’s finite seafood resource to the
fishers and processors in Alaska. This means working to obtain higher prices for the limited
amount of seafood we have, as opposed to simply promoting higher sales volumes. To
convince NEU consumers to pay more for Alaska seafood, ASMI’s promotional activities
must above all strengthen the Alaska Seafood brand i.e. promote greater awareness,
understanding of and preference for Alaska seafood’s high quality and its wild and
sustainable attributes.
Shellfish and Crab
Shellfish and crab imports into NEU dropped to almost zero in 2017 with no scallops being
imported at all and only a very minor quantity of frozen king crab into NL. Although chefs
enjoy working with and showcasing king crab, imports into the market are scarce.
Salmon
Total direct salmon imports into NEU declined by -16% in volume and -9% in value.
Accordingly, the share of total Alaska products from 24% to 16.5% in volume terms.
Salmon accounts for 17% by volume and 25% by value of trade from Alaska into the NEU,
with volume declining markedly into the UK although the price per kilo increased +16%.
Species by species analysis is difficult due to the increasing use of NSPF codes making
species analysis impossible. The UK and Netherlands together account for 95% of the salmon
imports.
16Alaska salmon has many opportunities and challenges. While canned salmon has been in
decline in the market, growth in value added and canned pink sales in the Netherlands will
offer opportunity. Chilled/refreshed continues to be an exciting sector for ASMI, showing
strong growth potential. Chilled fish is the largest sector with chilled wild salmon growing
much faster (+21.1%) than total salmon with value now over £28million. The frozen sector
has seen value, volume and unit growth despite inflation as more households are shopping the
category.
Functional fitness continues to be a theme for creating consumer awareness of the postive,
healthy attributes of Alaska salmon. ASMI NEU will continue to promote Alaska salmon
through the “We are Wild” campaign with emphasis on the nutritional benefits of
incorporating Alaska salmon into the healthy living and fitness lifestyle.
Groundfish
Total groundfish species increased 35% in both volume and value terms, with over 80% of
this being frozen Alaska pollock fillets. Of this Alaska pollock frozen fillets, 97% is being
imported into NL where it is redistributed throughout Europe. In the UK, Pollock was down
by almost half in volume terms reflecting currency fluctuations and the ongoing switch back
to cod by the major retailers.
ASMI NEU has found opportunities to raise awareness of Alaska pollock through influencer
campaigns, special promotions with chefs, and continued education of the versatility of
Alaska pollock through hands-on experience.
Flatfish
There were no flatfish direct imports direct into NEU in 2017. However, the UK does see
reprocessed flatfish in the market and will continue to work with importers to learn of
opportunities to label Alaska flatfish in the market.
NSPF, (non-specified product form)
Materials in this category increased by 18% in volume terms with value declined marginally,
-2%. This was mainly due to large declines in sticks and surimi. However, mince products
increased +25% in volume terms with the price dropping back and value only increasing by
+7%. Coding of these products prevents analysis by species, most likely due to increasing use
of mixed containers.
D. Market Strategy
1. SWOT Analysis – Wild Alaska Seafood
Strengths Weaknesses
Consumers have a low awareness of the attributes of
Consistent sustainability messaging over time Alaska seafood.
17Poor understanding of species differentiation among
Increased adaption of ‘wild’ on pack and in store chefs.
Canned market continues to decline with average
Positive health attributes of products ahead of
audience now 65+.
farmed species.
Not all Alaska seafood entering the market is of the same
Variety of species - fish for every occasion and
quality.
budget.
Poor understanding in foodservice of product attributes
Vast fisheries resources and range of fishing
and use of frozen.
methods.
Narrow species use/availability in NEU from Alaska.
Exemplary fisheries management.
Lack of product innovation in canned (e.g large can size
and no ring pull) limits ability to broaden the appeal of
High-quality premium products.
canned salmon.
Lack of (frozen) storage facilities in small kitchen-based
Alaska wild and natural and historical positioning. restaurant chains.
Alaska aspirational destination adding value and
desirability to product marketing.
Versatility and range of products available.
Opportunities Threats
Health messaging – Alaska seafood is well-placed Consumer/chef preference for locally sourced
to maximize opportunities around this consumer ingredients.
trend.
Health benefits of Alaska seafood a key attribute Wide variety of seafood available at cheaper prices in
for growing sports participation market. what is a predominantly price-led market.
Refreshed category growth and innovation in the Consistency of supply due to fluctuations in volumes
retail sector. caught each year.
Schools and institutional catering using of Alaska Traditional bricks and mortar retailing continues to be
origin and messaging to differentiate and under threat and increased role for discount retailing with
encourage healthy eating. minimal ranges.
Differentiation of salmon species for differing Rationalization of SKUs across retailers and pressure on
usage opportunities. space esp in canned.
Increase in farmed salmon prices provides Consumers don’t understand the difference between
salmon species and often the difference between wild and
competitive advantage for wild salmon.
farmed.
Increased viewing of fast recipe films and food Increasing coverage around plastic pollution in the ocean
content via social media platforms. and the impact on wild fish stocks globally.
18Innovation by partners such as John West leading Increasing demand from industry for proof of social ethic
some growth in canned salmon. integrity and enhanced labor standards.
Growth of recipe based meal kit and grocery Pressure on retail margins makes cheaper, inferior
delivery services. products look more attractive.
Opportunity for RFM to be recognized as an
independent brand, as MSC is challenged by Volatility of exchange rates due to geopolitical instability
senior management change and slowness to leading to sector inflation.
respond to social ethics standards.
The color of sockeye is perceived as unnatural.
Increased use of vegan and flexitarian diet approaches by
consumers and broadly represented in mainstream media.
192. Long-term Strategy in this Market
Objectives:
• Increase consumer and trade awareness of the key merits of Alaska seafood, namely
wild, natural and sustainable.
• Encourage demand for wild Alaska provenance across consumer, trade, and HRI
groups.
• Educate consumers, trade and HRI on benefits, usages and sustainability credentials
of wild Alaska seafood.
• Inspire consumers and chefs to cook with wild Alaska product.
• Encourage foodservice innovation to offer Alaska seafood as an alternative protein for
fast casual dining
• Provide specific support for wild Alaska pollock.
• Continue to support activity to halt the decline in canned salmon consumption.
• Continue to find new trade partners for new species beyond salmon and pollock.
Strategy:
To ensure consumer preference for Alaska product, differentiation of wild Alaska seafood is
the most important facet when promoting the product to trade and consumers.
To achieve consistency with our marketing outreach we have continued to use the “we are
wild” creative across our consumer campaigns.
Consumer outreach has continued to focus on athletes, foodies and day to day seafood
consumers targeted through retail campaigns.
Much of the consumer outreach has been focused online with a noticeable increase in the
outreach via social media.
A wholesale review of positioning concluded that marketing wild Alaska seafood as fit fish to
a consumer audience with a UK bias across the southeast where research shows there is
higher consumption of premium seafood.
Consumer outreach on social media has integrated trade campaigns ensuring a holistic
approach encouraging consumers to buy Alaska and showing them clearly how and where to
buy Alaska.
The NEU website has been updated to include new content from women in seafood across
the Alaska industry and this content was syndicated to maximize outreach ensuring
provenance continues to be a major part of our story.
20As ASMI moves consumer spend from print to social and digital campaigns, the website will
continue to be updated to offer current recipe ideas, food trends and content.
Campaign themes will center on:
• Eating wild Alaska seafood for fitness/health
• Eating wild Alaska seafood for an alternative protein source to meat
• Encouraging the use of frozen Alaska seafood to minimize food waste
• Supporting canned salmon sales
• Increased promotion of wild Alaska pollock
• Ongoing education around sustainable
Campaign themes will have different messaging but will all pivot around the “we are wild”
messaging driving customers to the microsite and extending the look and feel of this high-
impact campaign.
ASMI NEU will maintain a continuous presence in the market with up-weighted activity at
key tactical moments throughout the year such as January (healthy eating), Easter, Christmas,
and spring sports event training. These key moments will be underpinned by campaign
themes such as summer BBQ, spring fitness, etc.
Finally, this calendar will be complemented with relevant national weeks (e.g. British
sandwich week, BBQ week, seafood week and U.S. events such as the Superbowl/July 4th).
Tactics
I. Consumer
• Continue to focus consumer activity online to generate maximum return on
investment and measurability.
• Grow consumer-focused social media pages Facebook, Twitter, and Instagram.
• Content strategy to focus on key calendar moments and sales periods.
• Creation of new videos for use on social media timed with key calendar events for
maximum engagement.
• Use brand ambassadors as social influencers – use the ambassadors to gain extended
social reach.
• Generate a bank of social media influencers/food bloggers as endorsers of Alaska
seafood.
• Use consumer sampling at sporting events as an opportunity to promote Alaska
seafood to sports fans and participants.
• Work with trade, retail, and restaurant partners to maximize PR outreach for Alaska
seafood with a particular focus on health and sports.
21• Develop a consumer marketing campaign focusing on wild Alaska pollock.
• Continued outreach of the virtual reality film to showcase the provenance of the
product.
• Continue to promote sustainability as a key USP for Alaska Seafood.
II. Trade
• Develop multi-channel marketing campaigns to ensure coverage at all consumer
purchase points online and in store.
• Integration of social media consumer touch points with trade campaigns.
• Continue to work with strategic partners engaging with the supply chain on a one-to-
one basis to get their buy-in.
• Focus on new product development and new trade partners.
• Support sales of new species.
• Continue to explore the opportunities presented by the meal kit and meal delivery
service market.
• Continue to work across industry to promote Women in Seafood through tactical
sponsorship, media events and partnerships.
• Develop joint promotions with other US cooperator groups to make budgets stretch
further and to reinforce provenance of product.
• Partner with Billingsgate Seafood School Sustainability events to deepen trade
engagement; educate trade on current Alaska seafood species and new species, as well
as sustainability.
• Develop profiling opportunities in the media for ASMI and partners.
• Social media outreach in partnership with trade members, sharing social plans to
ensure leverage can be gained by tagging trade companies to develop reach.
• Reinforce the validity of RFM using GSSI benchmarking results in the context of
Alaska’s sustainability heritage encouraging trade to reference GSSI in their
procurement policies.
III. HRI
• Engage with chefs, school cooks, and development executives to raise the profile and
awareness of Alaska Seafood.
22• Educate this sector from the grassroots up, with a focus on student chefs within
catering colleges and young chefs.
• Work with innovation teams to investigate opportunities for underutilized species and
new products for wild Alaska seafood in foodservice.
• Roll out e-learning to all catering colleges supported by a marketing campaign.
• Participate in presentations to catering colleges and provide product for them.
• Participate in buyers’ trade events to enable one-on-one meetings with potential new
customers.
• Participate in call center training events for wholesaler sales teams.
• Participate in school and university outreach program with a focus on more children
eating more seafood, and more schools using Alaska seafood.
• Maximize the distribution of the Virtual Reality video to inspire chefs, trade, and
colleges.
23A. Past Performance and Evaluation Results:
II. Financial allocations and resources
MAP $ 745,331
RSS $ 197,500
TOTAL $ 942,831
III. Exports – Market Level Impact
2017 GOAL 2017 ACTUAL
VOLUME: 88,525 MT
VALUE: $240,000,000 $276,868,203
in $ Terms
Table 1. Northern Europe
Year Volume (MT) Value ($) Market Share (%) Status
2005 88,617 $239,040,196 3.105% Actual
2006 81,645 $247,895,716 2.738% Actual
2007 71,101 $234,136,683 2.335% Actual
2008 61,532 $246,408,322 2.384% Actual
2009 51,292 $189,315,743 1.986% Actual
2010 57,378 $213,069,936 2.052% Actual
2011 83,092 $295,937,423 2.551% Actual
2012 66,746 $241,118,607 2.145% Actual
2013 70,681 $244,448,649 1.924% Actual
2014 74,400 $248,965,853 1.800% Actual
2015 71,353 $244,794,186 1.957% Actual
2016 72,639 $238,310,166 1.694% Actual
2017 88,525 $276,868,203 1.897% Actual
2018 Goal
24COUNTRY PROGRESS REPORT FINDINGS FY: 2017 – 2018
1. Performance Measures table
Target: Consumers in the UK, 25-54 years old who prefer wild caught seafood over
farmed.
CONSTRAINT-PERFORMANCE MEASURE TABLE
SECTOR: CONSUMER
CONSTRAINT:
Constraint: Limited consumer awareness of the origin and product attributes
(taste, natural, healthy, abundant, sustainable, nutritious and versatile for the use in
traditional and contemporary dishes) of wild Alaska seafood.
Constraint: Limited consumer awareness/knowledge within the 25 to 54 age group
about new and traditional canned salmon use, especially in hot, cooked main meal
dishes in the UK.
FY 16 FY16 ACTUAL
PERFORMANCE MEASURES FY15
Goal
ACTUAL
1 Index 1 Wild vs. Farmed 13% 14% 13%
2 Index 2 Sustainability 28% 29% 28%
3 Index 3 Comfort and preparation 84% 85% 83%
4 Index 4 Purity and Safety 46% 47% 45%
5 Index 5 Health 67% 68% 66%
6 % of target consumers who state 42% 43% 35%
they have purchased Alaska
seafood in the last six months
7 % consumers age 25-54 who state 47% 45% 49%
an intention to purchase canned
Alaska salmon in next 12 months
8 % of consumers who state intent to 78% 79% 78%
purchase if Alaska seafood was
available and offered at a
reasonable price
PM 1-8 measured by Rose Research through online surveys, 750 participants, 40% male,
60% female, average income at least $50,000 a year.
2. Results of evaluations/Impact on constraint or opportunity:
The Wild and Farmed Index (PM1), is a basket of measures covered by questions about:
Awareness of the difference between wild and farm-raised fish/seafood;
Preference for purchasing wild fish/seafood;
All AK fish/seafood is wild and not farm-raised;
25AK fish/seafood is better quality & texture than farmed product;
AK fish/seafood is nutritionally superior to farmed product;
AK fish/seafood tastes better than farmed product.
Last year’s actual result was 13% with a target of 14%. Actual for this year was 13% so no
change in this index.
ASMI NEU continues to promote “Wild” as a claim for all marketing for Alaska seafood. All
marketing material for Alaska seafood endorses the key points of provenance and source as
well as the health and taste benefits of wild. We do not compare negatively to farmed product
but continually promote the superior benefits of wild. This year, reduced budgets for the
region meant consumer advertising in print was reduced in favor of more spend online, which
reduced our consumer outreach.
In consumer marketing, ASMI has continued with the narrowing of the target demographic
from ‘family food purchasers (mums)’ and ‘foodies,’ to ‘fitness & nutrition’ and ‘foodies’.
The narrowing of the demographic to interest groups enables ASMI to better target funds and
budget, gaining an improved return on investment.
A “We are Wild” campaign ran online through 2016. The launch was timed to coincide with
a consumer focus on health and outdoor eating. The campaign included the launch of the “We
are Wild” microsite to educate consumers about the variety of seafood and inspire them with
recipes. An online advertising campaign ran across titles including Runners World, Men's
Health, Women's Health, Delicious, Eat Healthy, BBC Good Food, and Healthy Food Guide.
Some print ads also appeared in Eat Healthy, Women's Health, Olive Magazine and
Restaurant Magazine.
Increasingly brands suppliers and retailers are increasing their support promoting all Alaska
product as wild. Suppliers such as John West and retailers own label products are using wild
on the pack. John West labels pink and red pacific salmon as wild and all Waitrose own label
products call out “Wild Alaska”.
Finally, it should be noted that the anticipated reduction in availability due to a low harvest in
2016 led to low performance. A limited supply of salmon from Alaska forced supply from
other destinations who do not promote wild as a key form of differentiation.
With no forecast supply issues expected we would increase this index measure to 14 next
year.
The sustainability index (PM 2) is generated from questions about:
At least some fish/seafood is sustainable;
All AK fish/seafood is sustainable;
Look for sustainable fish/seafood when purchasing;
Sustainable fish/seafood is important when purchasing.
Last year’s results showed 28% and established a target of 29% for this year. Actual results
for this year is 28%, so we have held position not gained.
26ASMI NEU has continuously communicated with trade the advancements achieved with
Responsible Fisheries Management (RFM) gaining GSSI recognition.
Retailers continually promote their sustainability credentials as many customers value
sustainability credentials over brand or price. This is particularly true amongst millennials
(18-34 year olds) with 52% rating eco credentials higher than price or brand. This age group
continues to be targeted by NEU consumer marketing through online consumer campaigns
and through social media.
Going forward, sustainability is taking on a wider remit addressing social issues. Modern
slavery, child labor, and working conditions are all under scrutiny. ASMI NEU is in ongoing
dialogue with seafood buyers, retailers, and their customers to ensure their understanding of
wild Alaska seafood and the commitment the seafood industry in Alaska makes ensuring the
supply of seafood is sustainable now and forever.
Activity in this area has included a series of presentations throughout the year to customers of
the seafood cooking school at Billingsgate where ASMI present a case study on their
sustainable practices to consumers and chefs who are learning about buying and cooking
seafood.
The changes in consumer awareness of sustainability and all the issues that surround the
seafood industry worldwide will continue to be a challenge. Growth is slow going on many
messages to the workplace and it is hard to envisage much growth in this index in the next
year, we would suggest an index rating of 29 next year.
Index measure three covers comfort and preparation and is an expression of the following
questions:
Purchase fish/seafood that needs to be prepared;
Comfortable preparing fish/seafood at home (not microwave/ready meals);
Comfortable preparing fresh and frozen seafood for the household.
This year’s research showed an 83% score against performance measure three showing that
high levels of the demographic are comfortable preparing seafood at home.
We are seeing in the NEU region that there are more pre-prepared seafood meals available in
retailers. At fish counters within larger retail chains, fish portions are being sold with added
value herbs and sauces to facilitate easy cooking “in the bag” at home.
A growth in the market of delivery boxes – sending recipe ingredients to consumers in pre-
weighed measures, also offer an opportunity for non-traditional seafood consumers to try
cooking fish at home.
The proliferation of food delivery brands such as Deliveroo and Just Eat show eating out of
home at home is the key growth areas in today’s food society.
ASMI will seek to partner with a delivery brand in coming years and maintenance of the
index at the previous level of 84% is the proposed target.
27Index measure four, purity and safety is developed from the matrix of questions linked to this
heading:
AK fish/seafood is high quality;
AK fish/seafood is safe to eat;
AK fish/seafood is natural;
AK fish/seafood is traceable;
AK fish/seafood is pure/clean – free of contaminants.
This year we achieved 46% in this performance measure, the same as last year but not
achieving the target of 47%.
Our educational activity around the points of differentiation of Alaska seafood coming from
the clean waters of Alaska are a continued part of our consumer marketing.
A growth in consumer campaigns concerning plastic in the ocean and how it affects seafood
may affect this rating going forward.
We are aiming to maintain this momentum with a target of 46% in the forthcoming year.
Index 5 assesses health perceptions by asking questions about:
AK fish/seafood is nutritious;
AK fish/seafood has Omega-3 fatty acids;
AK fish/seafood is good for the heart;
AK fish/seafood is a good source of protein;
AK fish/seafood is an important part of a healthy diet.
The result for performance measure five on health perceptions has remained at 66% after a 5-
point growth the previous year.
Neilsen data shows that when prompted, 50% of UK adults see fish as having healthy heart
benefits. 49% say that fish contributes to healthy skin, hair and nails and 48% that it helps
contribute to the maintenance of normal brain function. 28% associate fish with maintaining
healthy blood pressure and 23% that it helps maintain healthy vision.
ASMI NEU continues to focus on activity targeting athletes and consumers who participate
in sports. These campaigns heavily promote the health values of wild Alaska seafood as a
pure source of protein with exceptional nutritional merit. This year we also ran sampling
campaigns at sporting events such as half marathons and Go Fest a sporting event targeting
families and children.
Performance measure six is a single question about “the percent of target consumers who
state they have purchased Alaska seafood in the last six months.” This result is the highest
decline in the consumer research decreasing 7% from 42% to 35%.
Two factors have contributed to this decline. Lack of availability of canned red salmon and
currency/seafood inflation.
28The total UK canned fish category has a value of £501m with canned salmon valued at £83.6
million. Within this, canned red salmon has the largest volume and has noticeably led the
decline of the sector with a year-on-year unit sales decline of 10.8%.
An uncertain economic future has meant a rise in price and food inflation +4.1%. The Fish
Consumer Price Index has reached a high of 13.6% compared to meat CPI of 3.2%. This
inflation is driving value growth but, reducing volume consumption.
The certification of Atlantic cod and decline in expected availability of Pacific cod next year
will continue to challenge this performance measure although we would expect to see some
redress to 38%.
Performance measure seven is an assessment of consumer’s intent to buy canned salmon. The
result has seen a slight increase from 47% to 49% bucking the trend of slow decline in the
canned sector.
Research shows there are 70 million occasions when canned salmon is consumed over the
year, 90% of the time this is at home and mostly at lunchtime or informal “TV dinners”. The
consumers who buy canned salmon are aging with 53% over 65 years.
ASMI NEU has been working to slow this decline over the years aiming to introduce new
younger buyers to the category and to introduce new menus and opportunities to use.
In the UK, which accounts for 85% of NEU exports of canned salmon, canned fish showed
an overall 2.4% decrease in unit and volume sales but an increase in value sales of 3.2%
driven by price inflation. Within the canned fish category, salmon decreased in value sales
10.8% and volume decreased 21.1%.
Instore sales continue to dominate this sector and ASMI NEU continues to support retailers
by running promotions with key partners such as John West and Princes.
Timed to coincide with key buying moments, an Easter campaign with Princes saw a 514%
increase in sales over the previous period based on an online, print and in-store promotion.
Princes are investing money to appeal to new customers working with bloggers and
influencers to reach young mums. Their marketing is focused on new ways to use canned
salmon and endorsing the health values of Alaska salmon.
The sole area of growth within this category is value added canned salmon. Led by John
West, these value-added products offer smaller single size ring pull cans with added flavors
such as chili and lemongrass. These value-added products are far exceeding sector sales with
growth of 57% year on year a 23% increase the previous year.
ASMI NEU continues to promote canned salmon to new, younger customers through
sampling and recipe development ideas. ASMI continues to issue recipes and inspiration to
the media on a monthly basis and across social media each week to generate interest and
ultimately consumer preference for Alaska seafood. Additionally, ASMI has created a new
recipe book for distribution at consumer events. The recipe book follows the ‘We are Wild’
campaign theme.
29We do not anticipate any restrictions in supply in the year ahead but equally as the category is
in overall decline would set a target an index of 49%.
Performance measure eight measures consumers who would purchase Alaska seafood if it
was available and offered at reasonable price. This percentage, 78%, is one of our highest
scoring performance measures although it does not reflect a change from last year.
This year availability and price have been issues for this market. However, the brand value of
“Alaska” cannot be underestimated. Never more have the key merits of the destination, wild,
natural and sustainable, been more relevant. In the UK there are issues around price inflation
for seafood and this offers a great opportunity for growth in demand and sales of Alaska
pollock.
3. Conclusion/What did you learn?
Chilled/refreshed continues to be an exciting sector for ASMI, showing strong growth
potential. Chilled fish is the largest sector with chilled wild salmon growing much faster
(+21.1%) than total salmon with value now over £28million.
This growth is a result of increased penetration up from 6.2 to 7% of the overall chilled
market. There is huge growth potential in this sector and ASMI will continue to promote the
merits of wild to grow demand and awareness within this category.
The frozen sector has seen value, volume and unit growth despite inflation as more
households are shopping the category. While the retail space for frozen is being reduced in
some stores, we are still seeing innovation in this sector from market giants such as Youngs.
NEU will continue to work with these brand partners to find opportunities for product
innovation and potentially the introduction of new species to the mix.
One fifth (19%) of 25-34 year olds now doing all of their grocery shopping online, with 36%
of this group shopping for groceries online more often now than 12 months ago. This trend is
expected to grow with the advent of meal delivery services in the future. ASMI will continue
to target online shoppers investing in online marketing campaigns with key media titles and
through retailer partner social media sites. Social media campaigns will underpin all targeted
activity.
While the canned category has its challenges, growth in value added and canned pink sales in
the Netherlands will offer opportunity. Shoppers in the UK are returning to own label
purchases and ASMI will continue to support these customers working with companies such
as LDH who provide Tesco own label and CKS who provide Dunnes Stores in Ireland.
The continued promotion of Alaska seafood to consumers who enjoy sports and are aware
their personal nutrition has continued to deliver success. We have seen higher levels of
engagement from this interest group who are very keen to learn about nutrition and ASMI
messaging. ASMI will continue to target this demographic in the coming years to introduce
new consumers to Alaska seafood.
301. Performance Measures Table
Target audience: major importers in the UK and the Netherlands, retailers in NEU, smokers
in the Netherlands, re-processors throughout the region.
CONSTRAINT-PERFORMANCE MEASURES TABLE
SECTOR: Trade
Constraint: Limited handling of Alaska seafood and limited awareness among major
importers and retailers in the UK and the Netherlands, and among re-processors (Birdseye and
Findus) within the whole region of the availability, sustainability, distinction, advantages and
preference of wild Alaska salmon and other Alaska seafood over farmed salmon and other
seafood competition.
Constraint: Limited awareness among smokers of sockeye salmon as a high-end alternative
to farmed salmon within the Netherlands.
PERFORMANCE MEASURES FY15(15/16) FY16 FY16
ACTUAL (16/17) (16/17)
Goal ACTUAL
1. Number of Alaska products included in 247 249 252
long-term product ranges (Imp/Ret/Dist)
2. Additional new Alaska seafood products 47 49 38
promoted by major retailers
3. Awareness among trade (Imp/Ret/Dist) of 93% 94% 88%
the long-term sustainability of Alaska seafood
and the inherent advantages over other seafood
competition
4. Number of smokers using Alaska sockeye 10 11 12
and ASMI POS
PM 1: Based on quarterly retail tracking survey.
PM 2: Based on retail tracking survey and information provided by trade partners including
distributors, importers, and buyers.
PM 3: Based on Rose Research online surveys 24 responses.
PM 4: Based on information provided by trade partners including distributors, importers and
buyers: Farne Salmon & Trout, Pinneys of Scotland, Franks Smokehouse NL, MaCrae
Seafoods, Severn and Wye, New England Seafoods, Barts Fish Tales, Harbour Salmon Co,
Lossie Seafoods, Bleikers Smokehouse, H. van Wijnen B.V., Roots Fish Smokery and
Forman and Sons.
2. Results of evaluations/Impact on constraint or opportunity:
PM 1: Tesco still has the highest value of seafood sales in the UK with 23.2% market share.
Sainsbury sit in second place at 15.2%, the recent accolade from MSC (Best sustainable
31seafood supermarket in the world) may have a positive impact in the future. Retail
distribution continues to evolve as Amazon and meal kit delivery services start to challenge
the status quo.
Salmon consumption has continued to grow over the past eight years despite a 36% increase
in price. Despite the decline in canned salmon sales, ASMI NEU ran successful campaigns
with Princes and Sainsbury to promote the sale of canned red salmon in the run up to Easter.
The campaign included a recipe for advertorial in the Sainsbury Magazine, trolley advertising
instore and online banner advertising. Over a four week period, the campaign generated sales
of over 91,000 units compared to an average weekly sale of 23,000. Sales were up 506% with
a 4.67 return on investment.
Waitrose has 7.5% market share, higher than Lidl, and Iceland, fractionally behind M+S
(7.6%) and Asda (8%).
With a more affluent demographic and a bias in the South of the UK Waitrose outperforms
Lidl, Aldi, and ASDA in chilled seafood sales and continues to offer the opportunity to
ASMI.
Waitrose continues to innovate offering king salmon for sale for the first time for Christmas
2016, demand for the same product in 2017 is expected to double. Equally, product
innovation such as wild Alaska keta salmon fillets with Yozo Dressing.
Throughout the year ASMI has supported trade partner New England Seafood with product
launches through Waitrose and Waitrose.com. A month long pre-Christmas campaign
including recipe cards, emails to the customer database and advertising on Waitrose.com
generated incremental sales of £280K over a four week period.
In-store sales still account for the largest volume of retail sales but online sales continue to
grow across NEU particularly with the under 40’s.
One in six Dutch consumers will buy their groceries online in 2017, with total revenue of
online supermarkets in the Netherlands expected to increase by 30 percent. As in the UK,
consumers in the Netherlands still buy most groceries instore but expectations are online
supermarkets will grow 30 percent in terms of revenue by 2017.
Albert Heijn’s online store is the most popular online supermarket with 60% of online
grocery shoppers using this website.
Analysis of products stocked online v instore products shows very little duplication between
online and instore. Larger ranges are available online and there are new products which are
not available instore showing a preference to test new products online rather than committing
to retail stocks.
ASMI continues to work with suppliers to encourage product innovation. Innovation Days
have been attended within the retail and wholesale sector and we will continue to look at
ways to introduce Alaska seafood in different ways.
Last year 247 products were listed in long-term product ranges with a target to increase to
249. Actual products counted were 252.
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