See seafood sales soar
Even in tough economic times, many consumers still want to eat right. This reality has proven to be a boon for seafood sales in recent years.
\"Fish and Seafood – US,\" an October 2012 report from global market research firm Mintel, explains that between 2007 and 2012, the fish and seafood category grew 14.6 percent to reach an estimated $16.2 billion. Consumers increasing desire for better-for-you foods likely was the major reason for that growth.
Looking at more recent activity here, the fresh and frozen seafood subcategories both seem to be doing well – according to data from Chicago-based Information Resources Inc. (See the table, p. 116.) However, the data also show that times have been tough on the shelf-stable end of seafood.
Frederick Chiu, senior vice president of procurement with Norwalk, Calif.-based MW Polar Foods, attributes sales drops on the store brand side of canned seafood to one significant factor: declining product quality.
To better compete, retailers need to focus first and foremost on store brand product quality, Chiu says, adding that two retailers that do well here are Rochester, N.Y.-based Wegmans Food Markets and Issaquah, Wash.-headquartered Costco Wholesale Corp.
Retailers also need to stock both wild-caught and farm-raised products to give their patrons multiple options in the canned seafood subcategory, says Chuck Marble, CEO of Elevation Brands, Framingham, Mass.
Do
consider offering seafood-based entrées in microwavable bags – they appeal to shoppers with little seafood-cooking knowhow.
Dont
neglect to communicate a seafoods origin on packaging.
\"[Retailers are] identifying not only the species, but also the catch method – farm versus wild – and really allowing the consumer to make a choice when purchasing their seafood,\" he says, adding that this trend applies to all seafood.
Whats fueling frozen and refrigerated?
Turning to frozen and refrigerated seafood, consumers increasingly are seeking products that are GMO- and gluten-free, says Tom Quinn, vice president of retail sales with Handy International Inc., Salisbury, Md.
In addition, more consumers are demanding products that are certified chemical-free, states Guy Lott, president of Sales Management Solutions, a sales consultancy near Mobile, Ala., contracted by the Alabama Seafood Marketing Commission. For example, hes seeing higher demand for products free from sodium tripolyphosphate, a preservative commonly found in frozen and refrigerated seafood.
Lott also is seeing more consumers requesting ethnic seafood-based entrées – specifically on the frozen side. Currently, he is working with a national retailer to develop a line of frozen seafood-based meals that appeal to Americans looking for Nuevo Latino, Italian-American, Cajun and other ethnic-inspired meals.
\"Were starting to take some of the foodservice items weve done well with and present those to retailers,\" he says. \"And if you look at whats selling the most, it [fits] the ethnic trend.\"
Speaking of the ethnic trend, the Mintel report points to rising consumption of seafood products by non-white consumers. Blacks and Asians, in particular, are over-indexing in the consumption of all types of fish and seafood.
\"Multicultural groups are to remain important for the fish and seafood market because they have been growing at a faster rate than whites and the total U.S. population,\" the report states. \"This trend is expected to continue.\"
In terms of specific varieties of fish and shellfish currently in vogue in the frozen seafood section, Lott points to individually quick-frozen bagged shrimp, which has \"gotten pretty big\" in the private brand sector.
Additionally, Lott points to stuffed shrimp and crab cakes as products that more retailers are looking to private label.
And dont forget about cook-in-bag frozen meals. Many consumers are hesitant when it comes to cooking seafood at home, Marble says, so a quality private label frozen seafood entrée in a microwavable bag can help alleviate any fears.
For its part, Marbles company recently developed a microwavable bag that cooks food according to the French \"en papillote\" method, in which food is put into a folded pouch and baked, with the pouch holding in the moisture to steam the food.
\"When it begins to steam in the microwave, it cooks evenly throughout the frozen meals so you dont lose the nutrients; you dont lose the flavor,\" Marble says.
The perfect package
Speaking of packaging, Marble states that retailers need to make sure they go \"to great measures to show\" off a products contents – whether via a high-quality graphic of a prepared meal on a frozen entrées bag or via a window on a package of refrigerated fish.
And on the shelf-stable side, canned seafood needs to be offered in multiple sizes to appeal to various shopper types, Chiu points out. Single-serve cans should be available for older consumers living in one- or two-person households, while larger-sized cans should be available for larger households.
And whether theyre refrigerated, frozen or shelf-stable, all seafood products should communicate their origin on packaging, Lott says.
\"If its a Gulf shrimp, [retailers] need to write Gulf shrimp on packaging – not just shrimp etouffee, but Gulf shrimp etouffee. Or if its a Chilean salmon or an Alaskan salmon, they need to make sure thats reflected,\" he says.
Merchandise for success
To command attention, Marble recommends cross-merchandising complementary products with all types of seafood – especially products that help with the cooking process.
But when cross-merchandising items in the frozen seafood section, Quinn warns retailers not to hang too many complementary products on freezer doors.
\"I have seen many stores that cover up their seafood products with a freezer door hanger selling kitchen utensils,\" he explains.
Retailers also should strive to educate their store personnel so they are ready to engage with shoppers in the seafood category, says Michael Ketchum, director of retail accounts with New Orleans Fish House, New Orleans.
Do
educate staff members so they can share their expertise with shoppers seeking information about store brand seafood products.
Dont
hang so many complementary items on freezer doors that they obscure your own-brand frozen seafood offerings.
\"Shoppers want to enjoy seafood, but most are afraid that they cant cook it,\" he says. \"Bridge that gap, and sales will increase. I have seen that model work at store level.\"
An excellent way retailers could educate shoppers is through in-store demos that involve sampling, Marble explains.
\"Demos go a long way, especially with seafood, where people are a little bit hesitant,\" he points out. \"But if they put it in their mouth and they like it, and they see how easy it is [to prepare], theyll buy it.\"
But retailers need not put demo programs together on their own. Quinn points out that seafood buyers are requesting more presence from their manufacturer partners to help demo products at store level alongside a chef, who can discuss and answer questions regarding a products safety and source, as well as show how to prepare the product.
| Look whats new |
| Simply Balanced Sea Scallops are new from Minneapolis-based Target Corp. Wild caught and all natural, the frozen scallops are said to be rich and have a sweet, briny flavor with a moist, firm texture. The microwavable scallops contain 1g of fat and 17g of protein per serving, and retail in a 16-oz. resealable bag. |
| Comprising frozen uncooked marinated shrimp on bamboo skewers, Trader Joes Thai Lime Shrimp Skewers can be prepared via the grill, stovetop or broiler. Newly available from Monrovia, Calif.-based Trader Joes, the skewers – which are sourced from Thailand – retail in 8.5-oz. cartons of five. |
| Newly repackaged from the Loblaw Companies Ltd. of Brampton, Ontario, are Presidents Choice East Coast Wild Crab Cakes, which now retail in a 280g carton containing four frozen cakes and bearing the MSC-certified logo. The mildly spiced cakes are carefully hand-formed and loaded with wild, sustainably sourced Canadian snow crab and a lightly seasoned blend of mayonnaise, red peppers, red onions and a splash of lemon. |
| H-E-B Tuna Delights Premium Yellowfin Tuna Cubes are lightly marinated in balsamic vinaigrette and said to be an excellent source of protein. Now available from San Antonio-based H-E-B, the tuna cubes are said to be dolphin-safe and retail in 2.82-oz. pouches featuring the Fully Fit logo, a health and wellness icon. The pouches are shelf-stable. |
| Source: Mintels Global New Products Database |
Freshness of fish critical to consumers |
|