NEIA
Operating an International Seafood Business from Atlantic Canada: Challenges & Opportunities
Introduction to OCI
Our Company Family owned Atlantic Canadian company ~ $250 million sales annually Focus on premium, quality products Diversified species/product base Committed to sustainable fishery management Leadership role in Atlantic Canada
Kinguk
The Business Fundamentals One of the largest offshore quota holders in Canada Significant stakeholder in inshore fishery Largest sustainable wild caught fish producer in Atlantic Canada Provide very broad range of species Very diversified market position
Other Species Sea Cucumber Squid
Canadian Snow Crab
Canadian C&P Cold Water Shrimp
Canadian Frozen-at-sea Cold Water Shrimp
Canadian Flounder & Sole
Canadian Sea Scallops
Lobster
Sustainability @ OCI MSC Certified Fisheries Sea Scallops Coldwater ( C&P ) Shrimp Yellowtail Flounder Offshore ( shell on ) Shrimp Newfoundland Snow Crab Atlantic Halibut Georges Bank Haddock FIP Fisheries 3Ps Cod ~ 90% of OCI raw material MSC Certified
R&D/Innovation Committed to investing in research and development activities Investing in new technology Focused on improving efficiencies, quality and exploring new value added products Innovation in harvesting and processing
Current Initiatives Harvesting Solutions Gear Design & Specie Selectivity Environmentally friendly harvesting Processing Solutions Water Jet/X-ray Technology Defrost Technology Sales & Marketing Brand and Market Development New Product Development
International Sales & Marketing
How we do business in Europe Main office in UK with sales reps in Italy and Germany; sales agents in several other countries Deal direct with entire market spectrum (retail, foodservice and processor segments) Broad species base means we cover all European countries Eg. UK C&P shrimp; France scallops; Russia/Ukraine - FAS shrimp; Bulgaria - mackerel
EUROPEAN MARKETS: Similar yet Different Business fundamentals are very similar across all countries Culture and language different Species sold are different Product forms are different Per capita seafood consumption very different
EUROPEAN MARKETS: EU vs non-eu Countries Currencies Health/inspection systems Labeling requirements Tariffs Non-tariff barriers
COMPETITION IN EUROPE Main seafood competition depends on species/countries of origin C&P shrimp Greenland, Iceland, Norway, USA Scallops USA, South America, Japan FAS shrimp Greenland/Denmark, Norway Mackerel Iceland, Faroes, Scotland, Norway Cod Iceland, Norway We can never forget competition from chicken, beef, pork
How we do business in ASIA Sales office in Kobe, Japan and Beijing, China + personnel in Hong Kong, Shanghai and Dalian In Japan sell to retailers, foodservice distributors, restaurant chains and large importers In China/Taiwan sell mostly to retail & foodservice distributors Broadest species mix is sold in Asia and biggest growth market
ASIAN Market Keys Preference for seafood in Asia, especially whole fish (vs fillets in Europe/NA) Huge cultural differences; need to understand how to do business Understanding trends: urbanization, middle class growth, hypermarkets Personal relationships with customers very important; provides better value and conduit for new opportunities.
COMPETITION IN ASIA Main seafood competition comes from multitude of species sold Canadian products are mostly niche items that we try to sell at higher prices Less competition from other protein sources since seafood so important in most Asian cultures
Positioning of our products into the global market
Positioning: Retail Provenance Quality Sustainability Safety - Crucial to consumer confidence. Overall positive image Labeling is also a factor in purchasing decision Taste, texture and visual are all key elements in delivering a packaged product FAS Live to Frozen Products Thinking more long term.
Positioning: Foodservice Foodservice Service Quality Sustainability We value our customer relationships. We have a global sales team. Our significant raw material volumes enable us to provide very consistent delivery. We supply our clients with world-class product. Vertical integration enhances quality control throughout the chain. We actively seek modern processes and technologies to improve efficiency and quality. We are committed to sustainable practices.
CHALLENGES & OPPORTUNITIES
Challenges Resource fluctuations High tariffs (Canada/EU Trade Agreement can be a game changer) Currency fluctuations Worldwide financial situation Competition from low cost countries Aging workforce/worker availability
Challenges Restrictive regulatory framework Lack of scale in harvesting & processing Retailers/consumers are faced with economic pressures not seen in a generation Can we maintain record high prices across range of species?
Opportunities Huge growing demand for seafood in Asia and Eastern Europe; per capita consumption increasing Our species mix relatively high valued and in demand compared to most countries Investment in R&D/new technology can result in huge opportunities
Opportunities Consolidation, and resulting scale of operations, is key to a stable industry and competing internationally Improved regulatory framework will result in better value for everyone More collaborative sales & marketing will result in better returns
Summary
SUMMARY Quality/consistency critical in building long term market presence Need to understand what drives your customers and position yourself accordingly Understanding impact of external factors (currency, etc) important in go-to-market decisions Level playing field important (tariffs)
SUMMARY Need scale to compete internationally and extract maximum value Need deep understanding of markets so you can respond to the opportunities they present Sustainable resources lead to sustainable long term business
THANK YOU!