Sustainability solutions for food companies

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1 Sustainability solutions for food companies University of Stirling 28 th June, 2010 Peter Hajipieris Birds Eye Iglo Chief Technical, Sustainability & External Affairs Officer Birds Eye Iglo/ University of Stirling 2 nd Research Conference 1

2 Agenda 1. Who is Birds Eye Iglo? 2. Marketing Fish basics 3. Why is Aquaculture popular? 4. Can Aquaculture be sustainable & How? 5. Going forward future consumers Peter Hajipieris/Birds Eye Iglo/ Bremen International Fish Fair 2

3 Leading European frozen food business # 1 frozen food brand in Europe 1.2bn sales Household brands UK, Ireland, Germany, Austria, France, Belgium, Netherlands, Portugal, Hungary, Romania, Russia, Turkey Fish, Vegetables, Poultry, Red Meat, Ready Meals Birds Eye Iglo/ University of Stirling 2nd Research Conference 3

4 World - Class fully integrated supply chain 3 world class facilities UK x1 Germany x2 Largest frozen fish factory in the world in Bremerhaven Birds Eye Iglo/ University of Stirling 2 nd Research Conference Birds Eye Iglo 4

5 Birds Eye Iglo Sustainability Workstreams Programme Workstreams Climate Change Sustainable Sourcing Ethical Sourcing Packaging & Waste Water Use Transport Efficiency Birds Eye Iglo/ University of Stirling 2 nd Research Conference 5

6 Our role in the Supply Chain Birds Eye Iglo are proud to have been key part of the evolution in Sustainable Fisheries Development for over 15 years Unilever & WWF founded the MSC Sustainable Fisheries Development Fisheries Improvement Partnerships MSC Certified Fisheries Programmes IFFO RSS & ASC Development Birds Eye Iglo/ University of Stirling 2nd Research Conference Production Retail 6

7 Marketing of Fish......some industry basics Birds Eye Iglo/ University of Stirling 2 nd Research Conference 7

8 Marketing of Fish Products conventional Consumers expect us to sell safe, good quality products Consistency is critical to repeat purchase NPD allows us to signal a difference in: Price point Quality (size, cut etc) Ingredients or taste recipe flavour experience Birds Eye Iglo/ University of Stirling 2 nd Research Conference 8

9 Marketing of Fish Products recent On-Pack Messaging of provenance/origin Single Indicator CSR responsibility measures: Responsibly Farmed Sourced from Responsible Managed Fisheries Sustainable Fishery source standards Certified Responsible Fish Farming standards Ethical supply chain standards Birds Eye Iglo/ University of Stirling 2 nd Research Conference 9

10 Omnibus of consumer buying insights - fish packs Pack of Fish Typical Consumer Feedback Like the product Price Best Before date Freshness Physical appearance Food Safety specifics Climate Change issues Omnibus - seafood product consumer insights Birds Eye Iglo/ University of Stirling 2 nd Research Conference 10

11 History of Fish Industry Standards Development Icing of Fish Freezing of Fish Food Safety classic Food Industry Change Quality - Freshness Shelf-Life Extension Modified Air Packaging TQM & ISO 9000 HACCP/HAZOPS EU Fish Regulations Birds Eye Iglo/ University of Stirling 2 nd Research Conference Time - Illustrative 11

12 Converting feedback into industry operations Pack of Fish Feedback 1. Like the product 2. Price 3. Best Before date 4. Freshness Industry Operations 1. Quality/Product design 2. Affordability built in to process 3. Quality & Freshness 4. Quality & Freshness 5. Quality dimensions 5. Physical appearance 6. Responsible Sourcing & 6. Food Safety specifics Manufacturing 7. Climate Change issues 7. Responsible Sourcing - Sustainable Fisheries Development Birds Eye Iglo/ University of Stirling 2 nd Research Conference 12

13 Why is Aquaculture....popular? Birds Eye Iglo/ University of Stirling 2 nd Research Conference 13

14 Fish - most consumed protein for Health reasons Birds Eye Iglo Source: A focus on fresh Topline trends from TNS Insight for Key Decision Makers Vol. 8 September

15 Retailing - Key Drivers - Aquaculture 1. Product Quality - consistency 2. Shelf Life 3. Range choice 4. On-Shelf Availability 5. NPD & EPD applications 6. Volume capability Promotion 7. On Pack Provenance 15

16 Bake To Perfection TV advert Eliminating barriers touch/preparation/smell 16

17 Can Aquaculture....be sustainable? 17

18 Genuine Challenges in Fisheries Management do exist Status of World Fisheries World s Fisheries Management under pressure IUU Estimates: 25% World Discards: 8% EU fisheries rated as 88% Overfished Governance, Policy and Reputational issues. Aquaculture is viable: Early irresponsible practices have damaged reputation FIFO concerns. - Environmental issues. FIFO = Fish in Fish out 18

19 Global standards development Aqua food prod tn Responsible Fisheries Management Aquaculture Industry Centric National Fisheries Change International Fisheries Change Global Change Time/Progress Birds Eye Iglo/ University of Stirling 2 nd Research Conference 19

20 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 20

21 Stakeholders Response? Birds Eye Iglo Individual logos are the property of the owner and used for illustration purposes only 21

22 Some Business to Business (B2B) Certification Schemes Alaska Quality Seafood (AQS), US Alter-Trade Japan, Japan Australian Prawn Farmers Association, BioGro, New Zealand BioSuisse, Switzerland Blue Angel, Germany Carrefour Quality Line (CQL) Shrimp Environmental Justice Foundation (EJF) GlobalGap Food Certification Scotland (FCS), UK Global Aquaculture Alliance (GAA) ) International Federation of Organic Agricultural Movements (IFOAM) International Feed Standard Alliance - IFSA International Principles for Responsible Shrimp Farming International Standards Organization (ISO) KRAV KRAV, Sweden Naturland, Germany Organic Food Federation, UK Safe Quality Food (SQF) Salmon of the Americas (SOTA) Shrimp Seal of Quality (SSOQ), Bangladesh Soil Association, UK Tartan Quality Mark (TQM), Scotland Thai Quality Shrimp, Thailand Wild American Shrimp, US Birds Eye Iglo Adapted with kind permission from R Bing, Darden s Restaurants 22

23 These efforts mean we are learning fast Birds Eye Iglo Individual logos are the property of the owner and used for illustration purposes only 23

24 So yes Aquaculture....can be sustainable.. 24

25 Because Sustainability.... is now mainstream Birds Eye Iglo/ University of Stirling 2 nd Research Conference 25

26 Current Change Phase of Fish Industry Freezing of Fish Food Safety Quality - Freshness Modified Air Packaging Industry Centric National Fisheries Change International Fisheries Change Global Change TQM & ISO 9000 HACCP/HAZOPS EU Fish Regulations Responsible Farming Traceability Now Sustainability Eco-Labelling Birds Eye Iglo/ University of Stirling 2 nd Research Conference 26

27 Current Best Practice? To reduce raw material inputs & reduce impacts on environment 1. improve resource utilisation e.g. avoiding Overfishing, no IUU, better FIFO Sea 2. Improve efficiency of food production e.g. less energy, less medicines Present Plate Future Plate Plate Farm Farm Birds Eye Iglo/ University of Stirling 2 nd Research Conference 27

28 FIFO Ratios in Aquaculture IFFO estimates Birds Eye Iglo/ University of Stirling 2 nd Research Conference 28

29 How can Aquaculture....be Sustainable? Birds Eye Iglo/ University of Stirling 2 nd Research Conference 29

30 Education key to Aquaculture s success Aquaculture understanding needs to improve 1. Understanding of Aqua as food production system is poor 2. Sustainable Development will change.in Aqua s favour a. Fact: Healthy fish stocks more sustainable than meat production b. Resource utilisation - Aqua less wastage than conventional fresh supply chains c. FIFO story needs to be told better Birds Eye Iglo/ University of Stirling 2 nd Research Conference 30

31 Adopt fish business management model Policy Scope Fish Sourcing Standards Specifications Third Party Process 31

32 BEIG role in Policy Development Policy 1. IUU Change or Initiative Active within industry trade federations such as AIPCE to develop solutions to IUU. 2. EU CFP Reform Key role in lobbying EU to improve this via AIPCE. Aquaculture needs to be part of CAP not CFP Birds Eye Iglo/ University of Stirling 2 nd Research Conference 32

33 BEIG role in Standards Development Standards 3. Fishmeal & Fish Oil Sourcing 4. Responsible Fish Farming Change or Initiative Key contributor to development of the IFFO Responsible Sourcing Standard - start on the right track to develop safe, traceable, responsibly sourced fishmeal and fish oil. Sustainable Fisheries Development in action. Technical Committee Member of Pangasius Aquaculture Dialogues leading to ASC standard. ASC Steering Board member Birds Eye Iglo/ University of Stirling 2 nd Research Conference 33

34 BEIG role in Certified Sustainable Fisheries Development Certification 5. MSC Change or Initiative The largest branded supporter of MSC programme across Europe by volume. 6. ASC ASC Steering Board Member to certify the most wide public consultation on standards development in fish farming ever. Birds Eye Iglo/ University of Stirling 2 nd Research Conference 34

35 Going Forward Opportunities Birds Eye Iglo 35

36 Food Security is real and not imaginary World Food Shortage UN Secretary-General Ban Ki-Moon January 2009 Birds Eye Iglo - FF/PH/LV/Confidential 36

37 Why should we only farm on land when the earth is mostly water? We have to make Aquaculture work Simply because it is a younger method of farming, does not mean we should abandon it We must apply the same Responsible operational principles we did in making food safe for billions of people Birds Eye Iglo 37

38 Aquaculture Challenges into Opportunities Workstream 1. Policy Opportunities Support research Integrate Aqua into food production planning Adopt Responsible Aquaculture practice standards 2. Education 3. Supply Chains Capability Drive industry skills and education Drop my scheme is best mentality there is NO benefit in duplication! Costs Confidence Easier for B2B trading and auditing Simpler to communicate to customers Maintains industry & consumer confidence Birds Eye Iglo 38

39 Fish is a wonderful, nutritious, fun food! 39

40 Salmon Fish Finger TV advert Recruiting a younger generation into fish Birds Eye Iglo/ Brussels Seafood Expo 2010 Business Leaders Speech 40

41 Thank You Birds Eye Iglo/ University of Stirling 2 nd Research Conference 41

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