Recent Developments in the Branding & Marketing of fish products

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1 Recent Developments in the Branding & Marketing of fish products OECD/FAO Roundtable on Eco-Labelling & Certification in Fisheries The Hague 22 nd -23 rd, April 2009 Peter Hajipieris Birds Eye Iglo - UK & Europe Director of Sustainability & External Affairs 1

2 Contents 1. Who is Birds Eye Iglo? 2. Marketing of Fish some basics 3. Communicating Sustainability - complex 4. Going Forward some opportunities 5. Summary 2

3 Who is Birds Eye Iglo? 3

4 Leading European frozen food business # 1 frozen food company in Europe 1.3bn sales Household brands UK, Germany, Austria, France, Belgium, Netherlands, Portugal, Hungary, Romania, Russia, Turkey Fish, Vegetables, Poultry, Red Meat, Ready Meals 4

5 World-Class fully integrated supply chain 3 world class facilities UK x1 Germany x2 One of largest frozen fish factories in the world in Bremerhaven, Germany 5

6 Category Leader in local markets Birds Eye Iglo Market Share in Fish & Vegetables Fish Veg UK 24% #1 #1 24% #1 #1 DE 19% #1 #1 39% #1 #1 AT 68% #1 #1 81% 6

7 Birds Eye Iglo Sustainability Workstreams Climate Change Sustainable Sourcing Ethical Sourcing Packaging & Waste Water Use Transport Efficiency 7

8 Fisheries Sustainability our Role Birds Eye Iglo has been instrumental in championing Sustainable Fisheries Development Unilever/Birds Eye Iglo & WWF founded the MSC Sustainable Fisheries Development Fisheries Improvement Partnerships MSC Certified Fisheries Programmes Production Retail 8

9 Marketing of Fish Products.. some basics 9

10 Branding & Marketing of Fish Products Reflects consumer culture and product life cycles Signals a difference in Quality, ingredients or recipe Signals a difference in price points On-Pack Messaging e.g. nutrition, origin Single Indicator social or responsibility dimensions e.g. Sustainable Fishery Status Responsible Fish Farming practice 10

11 Development Cycle is Culture & Market Dependent e.g. Food Safety, Sustainable Fisheries Management, Responsible Farming Industry Centric National Fisheries Change International Fisheries Change Global Change Time/Progress 11

12 Communicating product states is complex Icing of Fish Freezing of Fish Time - Illustrative Food Safety Quality - Freshness Modified Air Packaging Typical Fish Industry Standards Development Hazard Analysis 12

13 e.g. Classic Frozen Fish vs Fresh Fish - science Fish starts to deteriorate the moment it is caught Keeping it in a chiller or on ice, slows the deterioration But freezing effectively stops it Frozen Qua ality On Ice Chiller/Fridge Time 13

14 Example not easy on pack 14

15 Example not easy on pack Fresh fish decays by the second Freezing stops the clock 15

16 Communicating the benefits of Frozen Fish via media communications Birds Eye Sponsorship 16

17 Communicating sustainability. far more complex 17

18 We know Fisheries Management Challenges World Fisheries Production IUU Estimates: <>25% World Discards: <>8% EU fisheries rated at 82% Overexploited Aquaculture viable but irresponsible practices have damaged perceptions Environmental Risks Food Resource Risk Socio-Economic Risks 18

19 Great efforts being made to tackle Governance Environmental Impact Food Resource Risk Socio-Economic Risks Lack of international standards alignment Evolution of a Multitude of Stakeholder Efforts 19

20 Sustainability challenges now more visible 20

21 Current Change Phase of Fish Industry Icing of Fish Freezing of Fish Time - Illustrative Food Safety Industry Centric National Fisheries Change International Fisheries Change Global Change Quality - Freshness Modified Air Packaging Hazard Analysis HACCP Responsible Farming Traceability Now Sustainability Eco-Labelling 21

22 Today, consumer price sensitivity is widespread Price Consumer Feedback 2. Best Before date 3. Freshness 4. Physical appearance 5. Food Safety 6. Climate Change 7. Sustainability Omnibus - seafood product consumer insights

23 Environmental > Economic > Social Environmental Economics SOCIAL Focus is on ecological or environmental based management of food production But Economics must be right as well to deliver social gains 23

24 Fish Ecolabel explosion well intended - confusing 24

25 Environmental Labels exist in other industries 25

26 And confusion is evident in communication Over 75% of the worlds fisheries are overexploited 25% of the worlds fisheries are overexploited Some engo Claims UN FAO Data 26

27 1. Industry Change - dynamic (since last OECD Challenges of Fisheries Globalisation Conference, 2007) Example EU IUU Reg s Ecolabel Misuse FIP Model Change or Action Regulatory change to assist fight against IUU challenges Examples where Ecolabels misrepresented for Quality Fishery Improvement Model now adopted by new NGO s to drive change or support businesses e.g. SFP 27

28 2. Industry Change - dynamic (since last OECD Challenges of Fisheries Globalisation Conference, 2007) Example MSC NGO Traffic Light Fish Lists Supermarket Surveys Change or Initiative Established in markets globally most widely adopted wild-capture certification scheme management tool Designed to alert consumers to more sustainability choices - not well received by market League tables showing ratings based on perceived sustainability performance 28

29 e.g. Birds Eye decided to relieve pressure on Cod ( UK Consumers will only eat Cod Fish Fingers ).so Birds Eye tried Hoki and Hoki did not work X 29

30 but Alaskan Pollock worked Omega 3 Fish Fingers biggest branded food launch in sustainability arena in last 10 years Relieved pressure on Cod However, examples like this are rare 30

31 Going Forward Opportunities 31

32 Looking at some Industry Opportunities Aspect Industry Opportunity 1. Governance Public & Private Frameworks & Partnerships can work Providing the agreed outputs are clear at the start 2. Communication Align terminology for Fisheries Sustainability FAO fisheries rating descriptors liable to confusion 3. Incentivise Transitional Fisheries 4. Certification Alignment We should reward positive change Abandonment allows poor practitioners to win whilst society loses Developing countries needs are relevant to debate Wild not the same as Aquaculture so clarify the principles and criteria for standardisation 32

33 FAO Exploitation terminology not metric open to misuse RISK Recovering 1% Depleted 7% Overexploited 17% Fully exploited 52% Moderately exploited 20% Underexploited 3% 0% 10% 20% 30% 40% 50%

34 Too many Ecolabels - complex Market confusion Complex to communicate Duplication of supply chain costs Inter-operability of standards weak Industry resources not focussed Standards misalignment Audit process misalignment Incentivisation process is misaligned 34

35 Aligning International Fish Certification suggested Wish list for Fish Certification Schemes 1. Does it operate to internationally agreed or harmonised reference? 2. Standards Inter-operability aligns to principles of standardisation 3. Certification process e.g. EN / ISO65 / ISEAL compliant? 4. Governance & Transparency of operating Management Board 5. Credibility of Issuing Organisation (gained from above) 6. Ease of use by industry simple language 7. Affordability - Cost Structure incentivises market to adopt standard 8. Continuous Business Improvement Process is inbuilt 9. Label Declarations consider ISO14020 aspects 35

36 Summary.. 36

37 Market will Choice Edit Ecolabel noise.. Consumers want clarity from Brands Industry Dilemma Now Consumers cannot Process Ecolabel Noise 37

38 We can improve industry chances of success by: Better & simpler design of user frameworks Align incentives Align standards Align audit processes Honest, transparent scheme claims 38

39 Finally a reminder.. Fish is a wonderful, nutritious, fun food! 39

40 Fish is a wonderful, nutritious food and fun! Birds Eye Salmon Fish Fingers TV advert 40

41

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