“The Promotion of Cultivated Molluscs” Mr Stephen Cameron – M.D. Scottish Shellfish Marketing Group

The Shellfish Association of Great Britain's 43rd Annual Conference

• Products • Markets • Future promotion • Conclusion

AGENDA

MUSSELS

PRODUCTS • Nielsen / SSMG data to April 23rd 2012

61%

16%

2%

1%

16%

4%

OTHER MOLLUSCS

PRODUCTS

MARKETS FOR MOLLUSCS

RETAIL FOODSERVICE WHOLESALE

42% 26% 32%

UK RETAIL FRESH SEAFOOD MARKET

RANK MAT -2 MAT -1 LAT MAT RANK MAT -2 MAT -1 LAT MAT VALUE VOLUME

TOTAL FRESH 1,544,458 1,591,856 1,678,683 140,406 140,484 141,481 5.5 0.7

SALMON 1 483,363 496,529 552,599 1 31,156 28,775 31,663 11.3 10.0

WARM WATER PRAWNS 2 135,369 144,896 145,475 5 9,928 10,634 9,787 0.4 -8.0

COD 3 126,463 127,379 137,099 4 9,289 9,439 10,343 7.6 9.6

HADDOCK 4 117,331 121,541 130,192 2 9,782 10,373 10,486 7.1 1.1

COLD WATER PRAWNS 5 109,692 110,830 101,416 6 11,328 10,675 9,131 -8.5 -14.5

MACKEREL 6 62,368 66,219 73,851 3 10,459 10,548 10,413 11.5 -1.3

TROUT 7 36,639 33,042 32,286 9 4,122 3,467 3,294 -2.3 -5.0

TUNA 8 35,843 31,640 27,641 14 1,898 1,443 1,252 -12.6 -13.3

SEA BASS 9 20,579 22,012 23,241 12 1,352 1,690 1,707 5.6 1.0

PLAICE 10 20,278 19,586 23,056 11 1,768 1,707 2,007 17.7 17.6

MUSSELS 11 21,033 21,180 21,162 8 3,945 4,010 3,748 -0.1 -6.5

CRABSTICK 12 16,737 17,204 19,039 7 3,929 4,025 4,067 10.7 1.0

SOLE 13 21,089 19,276 18,165 13 1,397 1,373 1,370 -5.8 -0.2

KIPPER 14 13,030 12,670 12,861 10 2,381 2,452 2,251 1.5 -8.2

SCALLOPS 15 10,152 11,984 10,648 20 452 536 461 -11.1 -13.9

CRAB 16 8,797 9,684 10,392 18 451 502 517 7.3 3.1

SEA BREAM 17 4,014 5,976 7,380 17 309 436 540 23.5 23.8

SQUID (CALAMARI) 18 2,900 4,362 5,927 21 187 243 317 35.9 30.6

HERRING 19 5,784 5,134 5,267 15 953 811 816 2.6 0.6

MONKFISH 20 4,894 4,976 4,542 31 96 96 89 -8.7 -7.0

POLLOCK 21 6,938 2,687 4,536 16 947 339 787 68.8 132.2

BASA 22 3,210 5,007 4,149 19 343 596 498 -17.1 -16.4

HALIBUT 23 4,054 4,051 4,096 26 114 114 119 1.1 4.5

SCAMPI 24 5,507 7,100 4,036 23 480 650 275 -43.2 -57.6

ANCHOVY 25 3,698 3,532 3,278 24 210 202 188 -7.2 -7.3

SARDINES 26 1,718 2,565 3,242 22 171 234 297 26.4 26.8

SKATE/RAY 27 2,982 3,082 3,077 30 102 101 103 -0.2 1.7

LOBSTER 28 3,284 2,823 2,633 35 124 79 63 -6.7 -20.0

CRAYFISH 29 4,319 2,880 2,353 25 327 201 144 -18.3 -28.4

TILAPIA 30 2,017 1,662 2,147 29 87 66 104 29.2 58.5

SWORDFISH 31 1,382 1,458 2,029 33 61 62 76 39.2 21.1

WHITING 32 2,168 1,990 2,025 27 125 121 114 1.7 -5.4

COLEY 33 1,939 1,972 1,911 28 128 119 109 -3.1 -8.8

HAKE 34 2,969 1,505 1,862 34 214 72 64 23.8 -11.0

EEL 35 1,436 1,184 1,083 32 104 92 83 -8.5 -10.3

VOLUME 000's KGsVALUE £000'S MAT % CHG

RANK MAT -2 MAT -1 LAT MAT RANK MAT -2 MAT -1 LAT MAT VALUE VOLUME

TOTAL FRESH 1,544,458 1,591,856 1,678,683 140,406 140,484 141,481 5.5 0.7

SALMON 1 483,363 496,529 552,599 1 31,156 28,775 31,663 11.3 10.0

WARM WATER PRAWNS 2 135,369 144,896 145,475 5 9,928 10,634 9,787 0.4 -8.0

COD 3 126,463 127,379 137,099 4 9,289 9,439 10,343 7.6 9.6

HADDOCK 4 117,331 121,541 130,192 2 9,782 10,373 10,486 7.1 1.1

COLD WATER PRAWNS 5 109,692 110,830 101,416 6 11,328 10,675 9,131 -8.5 -14.5

MACKEREL 6 62,368 66,219 73,851 3 10,459 10,548 10,413 11.5 -1.3

TROUT 7 36,639 33,042 32,286 9 4,122 3,467 3,294 -2.3 -5.0

TUNA 8 35,843 31,640 27,641 14 1,898 1,443 1,252 -12.6 -13.3

SEA BASS 9 20,579 22,012 23,241 12 1,352 1,690 1,707 5.6 1.0

PLAICE 10 20,278 19,586 23,056 11 1,768 1,707 2,007 17.7 17.6

MUSSELS 11 21,033 21,180 21,162 8 3,945 4,010 3,748 -0.1 -6.5

CRABSTICK 12 16,737 17,204 19,039 7 3,929 4,025 4,067 10.7 1.0

SOLE 13 21,089 19,276 18,165 13 1,397 1,373 1,370 -5.8 -0.2

KIPPER 14 13,030 12,670 12,861 10 2,381 2,452 2,251 1.5 -8.2

SCALLOPS 15 10,152 11,984 10,648 20 452 536 461 -11.1 -13.9

CRAB 16 8,797 9,684 10,392 18 451 502 517 7.3 3.1

SEA BREAM 17 4,014 5,976 7,380 17 309 436 540 23.5 23.8

SQUID (CALAMARI) 18 2,900 4,362 5,927 21 187 243 317 35.9 30.6

HERRING 19 5,784 5,134 5,267 15 953 811 816 2.6 0.6

MONKFISH 20 4,894 4,976 4,542 31 96 96 89 -8.7 -7.0

POLLOCK 21 6,938 2,687 4,536 16 947 339 787 68.8 132.2

BASA 22 3,210 5,007 4,149 19 343 596 498 -17.1 -16.4

HALIBUT 23 4,054 4,051 4,096 26 114 114 119 1.1 4.5

SCAMPI 24 5,507 7,100 4,036 23 480 650 275 -43.2 -57.6

ANCHOVY 25 3,698 3,532 3,278 24 210 202 188 -7.2 -7.3

SARDINES 26 1,718 2,565 3,242 22 171 234 297 26.4 26.8

SKATE/RAY 27 2,982 3,082 3,077 30 102 101 103 -0.2 1.7

LOBSTER 28 3,284 2,823 2,633 35 124 79 63 -6.7 -20.0

CRAYFISH 29 4,319 2,880 2,353 25 327 201 144 -18.3 -28.4

TILAPIA 30 2,017 1,662 2,147 29 87 66 104 29.2 58.5

SWORDFISH 31 1,382 1,458 2,029 33 61 62 76 39.2 21.1

WHITING 32 2,168 1,990 2,025 27 125 121 114 1.7 -5.4

COLEY 33 1,939 1,972 1,911 28 128 119 109 -3.1 -8.8

HAKE 34 2,969 1,505 1,862 34 214 72 64 23.8 -11.0

EEL 35 1,436 1,184 1,083 32 104 92 83 -8.5 -10.3

VOLUME 000's KGsVALUE £000'S MAT % CHG

• Nielsen data to April 23rd 2012

• Total fresh market is worth £1.68bn - 141,000 tonnes.

• Value is in strong growth in 2012 although volume is flat.

• Retail inflations in prawns has seen a dramatic decline in volumes sales.

• Promotions in the salmon category are vital for sales in the overall fresh fish category.

• Fresh mussels have been relatively steady in spend over the past three years although volume is down.

UK RETAIL MUSSEL MARKET DYNAMICS

• Retail sales of cooked mussels have increased around 16% year on year.

• Retail sales of live mussels have increased by around 20% year on year.

• Cooked meats and marinated mussels have see a decline in volume over the last year.

• Shoppers are moving their purchases of mussels to added value convenient cooked mussels.

• Increased scratch cooking at home has meant growing sales of live mussels.

• Nielsen / SSMG data to April 23rd 2012

30%

40%

50%

60%

70%

80%

90%

100%

40% 45% 50% 55% 60% 65% 70% 75%

% o

ver

44

% ABC1

Surimi

Mussels

Basa

Tuna

Seabass

Crab

Kipper

Salmon Trout WWP

Haddock Cod

Mackerel

CWP

Less Affluent

Younger

Older

More Affluent

MUSSEL CONSUMERS

Penetration of; • Fresh mussels 10.46% • Fresh cod 28% • Fresh crab 3.21%

(Nielsen data to 23rd April 2012)

Drivers to purchase; • Health • Sustainability • Provenance • Indulgence

05-Sep 05-Oct 05-Nov 05-Dec 05-Jan 05-Feb 05-Mar 05-Apr 05-May 05-Jun 05-Jul 05-Aug 05-Sep 05-Oct

KG Sales SSMG Live Mussels 2010/11 (Promotions filtered out)

Kg

WHAT CAN IMPACT THE MARKET

+24% +11%

Total Grocers All Food Year-on-Year £% Changes (Kantar Data)

-10

0

10

20

30

40

50

Period

Sale

s G

row

th £

% Economy OL

Premium OL

• Economy own label sales have grown significantly in last 4 years

• Premium sales are in growth in the last year driven by the likes of the M&S “Dine in for £10”

• Product innovation needs to recognise these trends to attract new and retain current consumers

2007 2011 2009

MARKET TRENDS

UK FOODSERVICE / WHOLESALE MARKET

• Live mussel sales for example; o M&J o Direct Seafoods

• Cooked mussels sales for

example; o Brakes o 3663 o Tragus

• Majority of sales in foodservice

is in live mussels although convenience of cooked mussels is becoming more important

3,030 tonnes

2,290 tonnes

Live mussels Cooked mussels

CONCLUSIONS

• Salmon raw material deflation will benefit the whole fresh fish category in 2012

• Increasing penetration of molluscs should be the goal of the industry to increase sales

• Marketing and promotion should be the basis to increase awareness

• Focus on the younger consumer through new flavour / species combinations to inject interest in the category

• Innovation and promotional activity of premium mollusc products should be capitalised on to drive sales

"Mussels are the future. They’re absolutely gorgeous, cheap, exciting, and so quick to cook”