ICELANDIC USA

Daniel A. Murphy, Jr.Executive Vice President

April 7, 2009

The Iceland Fishery….A Return To Prominence in the USA

Economical Importanceof Fisheries in 2007

Total export of marine productsFish and fish processing:

7% of GDP7% of workforce40% of goods export30% of total export value

Cod is most important – 39% of export value of seafood

Seafood Annual Consumption

Iceland 168 lbs per capita

Japan 145 lbs per capita

Canada 52 lbs per capita

UK 42 lbs per capita

USA 16 lbs per capita!

• American’s believe they are big seafood eaters.

• The truth is they are big poultry eaters at 72 pounds per capita and big beef eaters at 62 pounds with pork at 46 pounds.

• American’s eat 16.3 pounds of seafood per capita

• Half of that is shrimp and canned tuna!

America’s Diet

• We eat 126 pounds of potatoes including 53 pounds of frenchfries &16 pounds of potato chips

• We eat 34 pounds of pizza

• We eat 32 pounds of cheese

America’s Diet

• We eat 54 quarts of popcorn

• We eat 22 pounds of ice cream

• Sadly we eat only .44 pounds of Cod

1988 1988 –– 15.2 Lbs15.2 LbsCanned Tuna – 3.5 Lbs

Shrimp – 2.40

Cod – 1.71

Alaska Pollock – 1.18

Flatfish – 0.619

Clams – 0.612

Catfish – 0.60

Salmon – 0.433

Crab – 0.327

Scallops – 0.314

2007 -16.3 Lbs (2006 16.5 Lbs) % ChangeShrimp – 4.10 Lbs (4.40) +71%

Canned Tuna – 2.70 (2.90) -23%

Salmon – 2.36 (2.02) +448%

Alaska Pollock – 1.73 (1.63)

+47%

Tilapia– 1.14 (0.996) na

Catfish– 0.876 (0.969) +46%

Crab– 0.679 (0.664) +107%Cod– 0.44 (0.505) -74%

Clams– 0.449 (0.440) -28%Flatfish – 0.319 (0.305) 49%

Source: National Fisheries Institute from NMFS data

Top 10 Consumed Seafood Shrimp & Salmon 40% of Total Consumption

• Of that .44 pounds per capita we fight it out with.– Iceland Cod– Alaska Cod– Russian Cod– Norwegian Cod– Canadian Cod– USA Cod

So where did it go?

• 5 p’s– Pope

– Pizza

– Pollock

– Pacific Cod

– Prices

Pope Paul VI

Feb. 1966 – he lifted the mandatory “meatless Friday’s”.

Dan Carney

Opened one Pizza Hut with his brothers in the 60’s…now there are 10,000

Tom Monaghan

Opened one Domino’s on the campus of University of Michigan…now there are 8,500

Alaska Pollock

Once considered the “junk fish of the ocean”

• McDonald’s

• Long John Silver’s

• Burger King

…..left Cod in the 1990’s for Pollock

Pacific Cod

• All of these factors contributed to the decline of Iceland cod/haddock in the US….however, the consumer has never lost his appeal for Iceland seafood!

Toot our horn

&

Bang our drum

26

Icelandic Products

12%

5%15%

20%25%

35%47%

78%

othermovies

musiclamb

skincare productsbottled water

clothingseafood

9% of respondents are familiar with products from Iceland; 76% are not; 15% are not certain.

Of those familiar with Icelandic products (N=60)…

Respondents who say Iceland is an appealing destination are much more likely to claim familiarity with Icelandic products (19% vs. 5%).

Seafood• The outdoor type is significantly more likely to say that if

fish is from Alaska, Canada, or Iceland they would really want fish.

• Outdoor types are also much likely than other to say fish from Iceland is fresh (62% vs. 43%) and high quality (55% vs. 39%).

(percent saying “makes me want it”)The fish is from Outdoor Type Non-outdoor typeAlaska 75% 61%Canada 50% 43%Iceland 54% 37%

• The heydays of Iceland cod were created by the immigration of – Scandinavians– Irish– German– Portuguese– Italians

• It is a time to return to the comfort foods or nostalgia food of their ancestors.

Whole Foods – Artic Char

Bonefish 150 unit restaurants loves Arctic Char

• Walmart – MSC

• McCormick & Schmicks – MSC

• Red Lobster – New England Aquarium

• Aramark – Monterey Bay Aquarium

Iceland’s Eco Logo

Iceland Fisheries future in the US

• The quota system is the model for the world

• The quality of the fish and the great care taken to produce it is second to none!

• The Iceland fishery needs to better relate to the world consumer and collaborate better than isolate

• You cannot appear & vanish again like in the early 1990’s and again in the early 2000’s.

• Commitment

• Consistency

• Competitive

Iceland Kroner