docShrimp and Turbot – From a Marketing Perspective Sirena Group
download 
Report Transcription
Shrimp and Turbot – From a Marketing Perspective Sirena Group
Sirena Group Sirena Group Canada / Iqaluit / 22 April / 2010 Shrimp and Turbot – From a Marketing Perspective By Mark Quinlan, General Manager of Sirena Canada Inc. SUMMARY • Introduction to Sirena • Shrimp Fishery – Supply / Production – Demand / Sales / Market – Vannamei Shrimp • Turbot Fishery – Supply and Harvesting – Importance of Quality and Price Comparisons – Main users • Conclusion Sirena Group • Founded in 1985 by Steen Riber and Peter Buhl • International seafood sales and marketing company • Head office based north of Copenhagen • Annual turnover approx. CAD 350 mill. Sirena Group Denmark • Naerum • Esbjerg • Stoevring Sirena Group Norway Denmark • Naerum • Esbjerg • Stoevring Sirena Group Iceland Norway Denmark • Naerum • Esbjerg • Stoevring Sirena Group Iceland Canada Norway Denmark • Naerum • Esbjerg • Stoevring Sirena Group Iceland Canada USA Norway Denmark • Naerum • Esbjerg • Stoevring Sirena Group Iceland Canada Norway Denmark • Naerum • Esbjerg • Stoevring USA Portugal Sirena Group Iceland Canada Norway Denmark • Naerum • Esbjerg • Stoevring Serbia USA Portugal Sirena Group Iceland Canada Norway Denmark • Naerum • Esbjerg • Stoevring Serbia USA Portugal Russia • Moscow • Kaliningrad Sirena Group Iceland Canada Norway Denmark • Naerum • Esbjerg • Stoevring Serbia USA Russia • Moscow • Kaliningrad China Portugal Sirena Group Iceland Canada Norway Denmark • Naerum • Esbjerg • Stoevring Serbia USA Russia • Moscow • Kaliningrad China Portugal Vietnam Sirena Group • 15 offices Worldwide • Main Species • Greenland Halibut (Turbot) • Cold Water Shrimp • Snow Crab • Lobster • Redfish • Pelagics Partners in Canada • Baffin Fisheries Coalition • Nataaqnaq Fisheries • Labrador Fishermen’s Union Shrimp Co. Ltd. • Funk Island Banker Limited • MV Osprey Ltd. Cold Water Shrimp (Shell – on) • • • • World Supply of CWS Challenges to Suppliers/ Harvesters Major Markets Competition – Vannamei Shrimp Supply of Cold Water Shell-on Shrimp Challenges for Canadian Harvesters • Cost of Harvesting Increasing – High Fuel Costs – Inconsistent catch rates – Increased crewing cost – Aging fleet with expensive replacement cost • Quota reductions – Area 6 reduction expected to be 30% – Reductions expected in other areas • Strong Canadian Dollar Shell-on Shrimp - Markets Shrimp Markets - Taiwan • Emerged as a market for CWS in 1992 Shrimp Markets - Taiwan • Emerged as a market for CWS in 1992 • 6000 m/t market Shrimp Markets - Taiwan • Emerged as a market for CWS in 1992 • 6000 m/t market • Many claims for discoloured heads Shrimp Markets - Taiwan • Emerged as a market for CWS in 1992 • 6000 m/t market • Many claims for discoloured heads • 1994 Vannamei shrimp from South America enter the market Shrimp Markets - Taiwan • Emerged as a market for CWS in 1992 • 6000 m/t market • Many claims for discoloured heads • 1994 Vannamei shrimp from South America enter the market • Since 1996 market is almost gone Shrimp Markets - France • Historic consumer of CWS Shrimp Markets - France • Historic consumer of CWS • In 1992, French Market was 6,000MT Shrimp Markets - France • Historic consumer of CWS • In 1992, French Market was 6,000MT/Year • Vannamei Shrimp introduced in 1996 Shrimp Markets - France • Historic consumer of CWS • In 1992, French Market was 6,000MT/Year • Vannamei Shrimp introduced in 1996 • Today, the CWS Market in France is insignificant Shrimp Markets – China • 2002 - Chinese CWS Market was 40,000MT/ Year Shrimp Markets – China • 2002 - Chinese CWS Market was 40,000MT/ Year • 2003 – Vannamei Shrimp production increased Shrimp Markets – China • 2002 - Chinese CWS Market was 40,000MT/ Year • 2003 – Vannamei Shrimp production increased • 2007 – CWS market dropped to 15,000MT China – Sales Level for 15 Years Shell on shrimp China – Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box China – Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box Vannamei Production increased; Hence a decrease in price China – Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box Vannamei Production increased; Hence a decrease in price 2003 we start to loose market share! China – Sales Level for 15 Years Shell on shrimp Cooked Vannamei in 5 kg box Vannamei Production increased; Hence a decrease in price 2003 we start to loose market share! Promotional Campaign started Shrimp Markets - Japan • The most stable Market • Demands excellent quality • Raw Shrimp • Large Sizes • Pays the highest price Shrimp Markets - Russia The most important shrimp market today • Russia 2003 – Russian CWS market was 25,000MT/Year Shrimp Markets - Russia The most important shrimp market today • 2003 – Russian CWS market was 25,000MT/Year • 2003-2010 – Russian GDP increased – Average Monthly Salary Increased – Favorable Currency Russia Shrimp Markets - Russia The most important shrimp market today • 2003 – Russian CWS market was 25,000MT/Year • 2003-2010 – Russian GDP increased – Average Monthly Salary Increased – Favorable Currency Russia • 2007 – Market grew to 50,000MT Shrimp Markets - Russia The most important shrimp market today • 2003 – Russian CWS market was 25,000MT/Year • 2003-2010 – Russian GDP increased – Average Monthly Salary Increased – Favorable Currency Russia • • 2007 – Market grew to 50,000MT 2007 – First Vannamei shrimp sold in Russia Shell-on Shrimp Markets - 2009 Vannamei shrimp Vannamei Shrimp • • • • • Produced in warm waters Produced in high density farms Susceptible to disease Contain additives to enhance production Not produced to the same standards as enforced in Canada • Little natural flavour Vannamei Shrimp • • • • • • Native to Central and South America Short production cycle (3-6 Months) Some farms produce three crops per year Generally Larger than CWS Size can be controlled More consistent colour than CWS Threat against CWS Which one would you choose? Vannamei Coldwater shrimp China Development in farmed shrimp China Development in farmed shrimp 1.5 mill. m/t and still counting Fighting back with information since 2003 • Communicating the difference between a natural product with no chemicals and the white shrimp Fighting back with information since 2003 • Communicating the difference between a natural product with no chemicals and farmed shrimp • New 5 kilo carton supported by exhibition, posters, brochures and a Chinese website Sirena promotion Sirena promotion Sirena promotion Sirena promotion Results show promotion works KG. Shrimp Markets are Declining Shrimp Markets are Declining What do we do next? How can we protect the future of CWS? Shrimp Markets are Declining What do we do next? How can we protect the future of CWS? Promote in current markets and fight against Vannamei shrimp competition Promotion in Russia • CWS is losing market share to Vannamei • Educate consumer and wholesale buyers – Most people do not know the difference between Vannamei and CWS • CWS shrimp is currently positioned in the low cost market segment (Price competition) Developing the Russian market to its full potential • Branded retail bags, posters, brochures, and a website Developing the Russian market to its full potential • Branded retail bags, posters, brochures, and a website • Stable customer relationships and product quality 24 hour distribution in the Russian market Shrimp Summary • Canada and Greenland are the largest producers • Potential Harvesting Problems • All Markets are declining • Promotion is required to combat the Vannamei shrimp competition Greenland Halibut World Supply • • • • • Russia/Norway Iceland Greenland Canada EU Nations Harvesting Methods • Mobile Gear – Trawlers • Fixed Gear – Hook and Line – Gill net Trawlers • • • • Smaller fish (Average size .5-1kg) Higher Catch rates Consistent quality Preferred in Japan Fixed Gear (Gill net) • Larger fish (Average size 1-2kg) • Higher price/mt vs Trawlers • Inconsistent quality – bruising and old fish/ poor freshness • Sold mostly in Taiwan Fixed Gear (Hook & Line) • • • • Largest fish (Average size 2-3kg) Consistent quality Highest Overall Selling Price/mt Sold mostly in Taiwan Price Comparrision Per kg Harvested – (Prices are estimated in USD weighted average for normal catch distribution) Price Comparision for .5-1kg fish (On average for normal quality) USD Selling Price Supply Problems in Iceland USD Selling Price vs. CAD Selling Price USD to CAD 1.06 Supply Problems in Iceland Quality is Most Important • • • • • • • Clean white meat Good Freshness with Natural Slime No Bruising or Blood Spots Accurate Size Grading Proper cutting Good Cleaning Natural Fish Shape Example of Poor Quality Example of Poor Quality Example of Poor Quality Example of Poor Quality Example of Poor Quality Example of Poor Quality Example of Poor Quality Factors Affecting Price • • • • • • • Quality and Reputation Method of Catch Destination End Use Size Availability from other suppliers Customer Requirements & Urgency Japanese Market • • • • Quality Conscious Consume the most Prefer smaller sizes Used for Sushi Taiwanese Market • Sirena was first importer of Greenland halibut into Taiwan • Stable consumers • Prefer larger sizes – 2kg+ used in Wedding Banquets • Sold mostly in the Fish Markets – 1-2kg used in daily consumption (Steaking/ lunch box) • Sold mostly to processors Branding - Taiwan “A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors” Branding - Taiwan “A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors” • In the wholesale market, Sirena has a well establish brand Branding - Taiwan “A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors” • In the wholesale market, Sirena has a well establish brand • Turbot is sold by the producing plant/ boat Branding - Taiwan “A name, phrase, symbol or combination of these to identify products and distinguish them from those of competitors” • In the wholesale market, Sirena has a well establish brand • Turbot is sold by the producing plant/ boat • Mixed Branding Strategy Reasons for Past Success • Well managed sales plan with year around supply • Few competing species – Difficult to farm oily fish in warm waters – Tooth fish, Sea bass and others have limited supply • Strong traditional markets; Turbot is desired by consumers Conclusion - Turbot • Canada is a major supplier • Different catching methods yield different products for different markets • Quality is most important • Maintain a consistent sales plan Questions?
