Branding             

One of the areas that I feel we have done a poor job of in the fresh seafood department is in developing brand loyalty.  No doubt there are plenty of branded products now hitting the case, as well as, a plethora of Private Label branded products.  But the question is - does the customer have any loyalty to these brands or are the products that they purchase driving their decision?  Is there a conventional retail store in this country that does not carry Oscar Meyer bacon, hot dogs and bologna?  Pepperidge Farm cookies?  Campbell’s Soup?  The list can go on at length of brand names that have become must-have products.  Are there any such products in the seafood case?  If a retailer changes from Chicken of the Sea brand shrimp to Contessa does the consumer really care?  Will anyone complain?  Will they even notice?

To make their brand relevant, companies need to define why it is important for the consumer to purchase - they need to develop a reason for the consumer to want to look for and purchase that brand.  As an industry we have spent a lot of time and energy convincing ourselves what the differences are between products - what we need to do is spend more of our resources conveying that message to the end consumer.   Through the power of branding we can convey to customers that the products that they are purchasing are safe, consistent and easy to use.   This, in turn, should lead to more confidence in their purchase and increase consumption.

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The Best Shrimp…

What is the best shrimp to eat????? As the shrimp buyer here I often get asked this question. The answer is actually interesting and it varies depending upon the individual tastes of the consumer.  When people order steak in a restaurant they are very clear when it comes to what they prefer; the Ribeye which is a fattier, richer, more flavorful piece of meat with good marbling throughout or a Filet Mignon which is a center cut, leaner piece of meat.  When it comes to shrimp though, the consumer is much less clear cut in what “type” of shrimp they like or even know about.

Shrimp can be different in looks and tastes simply by method, i.e. farmed or wild. Shrimp can also be vastly different in looks, tastes and cooking time by species: Penaeus Vannamei (whites), Penaeus Subtilis (brown), Penaeus Monodon (tigers) or Machrobrachium Rosenbergii (freshwater). In the shrimp world, we use the Latin or scientific names when purchasing shrimp so that all of the sellers and buyers worldwide understand exactly the species that they are buying. This is a cute footnote to all parents who are struggling with their teenagers taking Latin in schools. The kids will say, “when in real life would we EVER use this?” you can then shoot back with the fact that the international seafood community uses Latin in buying and selling.

The Penaeus Vannamei or white shrimp are typically sold in many forms and can be from Mexico, Ecuador, Panama, Indonesia, Vietnam, India and other areas of Southeast Asia and South America. They can be wild or farmed and are also caught in the Gulf of Mexico. The US domestic shrimp industry thrives with white shrimp harvested from the Gulf of Mexico in Mississippi, Louisiana, Texas and Alabama. Typically, farmed raised shrimp have a very mild flavor and have a nice uniformity so that all of the shrimps in one size look the same in shape. The farmed whites can be softer in feel in the mouth vs. a wild white. The South American farmed whites are typically firmer than the Asian farmed whites.

Wild caughtwhites can vary greatly in flavor depending upon where they are caught. The Mexican whites are a very “meaty” shrimp with a good crunch and a sweet flavor. The Domestic Gulf whites can be a bit softer in the mouth and can have a “shrimpier” flavor, but are also sweet.

The Penaeus Subtilisor Browns are a “strong” flavored shrimp which can have a bit of astringency in the flavor profile due to their higher iodine content. Many different regions of the country prefer these shrimp, especially in the South and Southwest, and in Maryland and the Carolinas.  The taste of these wild caughtbrowns is VERY “shrimpy”; which, in other markets can be objectionable.

The Penaeus Monodon or black tiger shrimp  can be farmed or wild caught.  However, in the US, black tigers are generally farm raised from India, Vietnam, Bangladesh or Indonesia. These shrimp can be a bit saltier and firmer than a white, but when cooked, have a beautiful bright orange color.  They have a nice crunch but if overcooked, can become tough especially since they have a shorter cooking time than white shrimp.

The Machrobrachium Rosenbergii are farmed freshwater shrimp.  These are typically prepared grilled, sautéed or baked and should never be boiled.  They have a very different taste and texture to the whites, browns or black tigers. They are plain in flavor with a texture and consistency that is closer to lobster than to shrimp. These are very firm and mild and they pick up marinades very well. Since they can grow quite large their cooked presentation can be quite dramatic.

So which is my favorite???? Well I like them all. As noted, some work better for frying and some work better for marinating and grilling; so there really is no correct answer. When we have done taste tests between farmed whites and farmed tigers with our 15 salespeople the results are usually split right down the middle. Half of the people prefer the milder and softer white; while the other half enjoy the brighter color, crunch and brininess of the tiger.

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Fresh Swordfish

High quality Fresh Swordfish is currently at historically low prices. There is also no better time of the year to find the highest quality and freshest-to-market, swordfish around. This premium fish is harvested off the coast of Halifax, Nova Scotia in an area known as the Emerald Basin. The cold, clean, waters of the Emerald Basin are home to some of the largest, fattiest, best tasting swordfish found anywhere in the world.

Harvested by long line Canadian fishing vessels, these large Atlantic Ocean swordfish are prized for their freshness, firm meat and taste. The cold waters of Eastern Canada makes these fish very fat which gives the meat a lot of flavor.  This is very similar to what marbling does for the flavor of beef. The more fat, the more flavor!

These fish are not available year round. They have been available since August, but fishing boats have almost caught their quotas and the weather is starting to get nasty. This means that if you don’t buy these within the next few weeks, you will have to wait until next summer to have the chance to enjoy them again. Don’t miss out! If you are a lover of swordfish, now is the time to experience the best eating swordfish ever.  Just make sure that what you are buying is Emerald Basin, Canadian, Long Line Swordfish. You will not be sorry!

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Imported Loligo Squid

There are several significant Loligo squid species imported into the US.  The two most significant are: Loligo chinensis (from China) and Loligo vulgaris (from India).  The one that offers the most value to the US consumer and is packed similar to US domestic squid is the Loligo chinensis squid from China.

Loligo chinensis is caught in the South China Sea and is typically brought to shore fresh.  There are Taiwan boats that freeze at sea, but the majority of the squid caught in the South China Sea is processed from fresh or first land frozen and then processed later.  Loligo chinensis is treated with a tenderizing agent during the cleaning process.  Very few US Squid importers list the tenderizing agent as an ingredient on their cleaned squid package.  BOSN calamari is one Chinese squid brand that has all the proper ingredients listed and is true net weight.

Loligo Chinensisafter processing is white, tender and neutral in flavor.  The US market prefers a tender squid with neutral flavor and this product meets those criteria. It is also packed in the recognizable format of tray and bag and is very competitively priced.   The squid is fully cleaned and tentacles are separated from tubes. The squid is sized by its tube length which mirrors the domestic loligo.

Loligo vulgarisis a loligo squid that comes to the US market primarily from India.  It is whole cleaned which means the tentacles are still connected to the tubes, but the tubes have been skinned and eviscerated.  The pack is typically in a block, not in a tray and bag, like the US or Chinese cleaned squid.  It is block frozen and wrapped in plastic.  Sizing is also typically tube count per kilo, not length of squid tube.

Loligo vulgaris is a very sought after specie around the world.  It is meaty, moderately tender; light colored and has a more pronounced flavor than the Loligo chinensis.  It is also chemically tenderized and the tenderizing ingredients are not usually declared on the package.

Regarding price, Chinese and Indian squid are similarly priced in the market.  The familiarity of the Chinese package versus the more obscure ct/ kg of the Indian squid and unruly block/bag means the Indian calamari is less likely to be found in retail.  Both Indian and Chinese squid packers are known to pack less than net weight, so once again it is critical to understand what one is purchasing.

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Do you know the different trims of Atlantic Salmon?

C TRIM

• Back bone out
• Belly ribs off
• Collar bone off
• Dorsal fin off
• Dorsal fin trimmed
• Fat and belly fin trimmed
• Pinbone out

D TRIM

• Back bone out
• Belly ribs off
• Collar bone off
• Dorsal fin off
• Dorsal fin trimmed
• All belly completely removed with straight vertical cut
• Pinbone out
• Tail trimmed
• Fully trimmed

E TRIM

• Back bone out
• Belly ribs off
• Collar bone off
• Dorsal fin trimmed
• All belly completely removed with straight, vertical cut (not feathered)
• Pinbone out
• Tail trimmed
• Fully trimmed
• Skin off

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 What’s my fish worth?

I remember a conversation I had with my Uncle Eddie back in the late 80’s when I was a relative greenhorn in the business.  I’d had 3 or 4 years of buying experience under my belt and thought that I had a pretty good idea what this business was about.  Ecuador was king when it came to Shrimp, and shell-on was the only way to go.  The import cost of 50/60 count shrimp had just plummeted from 3.20/lb down to the unheard of price of 2.80/lb!  I tried to make the argument with Ed to take whatever capital we had and buy as many 50/60’s as we could lay our hands on because the item had gotten so cheap that it was selling below the base intrinsic value for the Shrimp.  Ed was very quick to point out to me that there is NO intrinsic value in Seafood.  Your fish is only worth what your customer is willing to pay you for it.

20 years later Ed’s words hold up better than ever.  Those 50/60’s that I would have felt safe selling at 2.95/lb are now worth 2.60/lb or less, and that size is one of the least affected by the deflation in the value of Shrimp.  Most sizes of Black Tiger Shrimp are at prices in the low end of the 10 year trading range.  Domestic Shrimp has taken a bigger hit, as it is now considered to be less valuable in the market than tigers, a total reversal in attitude!  Domestic Shrimp are selling at prices lower than they were in 1985, and that’s not taking into account the erosion in the value of a dollar.  In real terms the shrimp is selling for less than half what it did back then!

Let’s not limit our discussion to the value of Shrimp.  You can find similar examples with other species including Snow Crab, Warm and Cold water Lobster tails and meat, fresh Swordfish, and dozens of other products, all of which are trading at or below the prices that they’ve sold at any time during the last 20 years.  At the same point we have other items where prices are zooming.  Farmed Salmon fillets were worth 4.10/lb on average in September 2007.  They’re selling for 5.50-5.75/lb now.  Scallops are selling at or slightly ahead of the prices that they were at last year.  Frozen Swordfish prices have jumped about 20% in the last 2-3 months.  The general trend at the moment is deflationary, but there are items that are bucking the trend.

What’s the answer to the question up top?  Your fish is worth what your customer will pay for it AT THE MOMENT WHEN IT IS NEEDED.  If you’re a speculator in stocks or precious metals you may want to speculate in seafood as well.  This is perfectly fine as long as you follow basic rules.  Don’t invest before you research the market.  Be careful buying commodities that are not openly traded, where it is more difficult to establish a current market price.  Be realistic about whether you can sell your purchase when it comes time to liquidate- don’t buy more than you can move in a reasonable timeframe.  Don’t gamble what you can’t afford to lose. Finally, don’t forget- fish is not gold or even wine- it doesn’t get better with age!

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Selling the Seafood Sizzle

One of the biggest problems that most consumers have with seafood is that they simply do not know how to cook it.  This problem can be solved with a little education which will, when done effectively, create a loyal, committed customer.  The question is how to educate. In today’s fast paced society, the consumer is typically looking to reduce their time shopping.  Although they may say they are looking for an experience, in most cases, they target on developing a solution to their need for a meal and want to be in and out of the store as fast as possible.  Getting your customer engaged will be the key to making them a customer. 

The passive route to take is to develop recipe cards and to make them available to customers both at the counter and via your web site.  The benefit of this approach is the low cost - on the flip side - it will do little to engage your customer and get them excited about seafood.  The more proactive means of engagement would entail product demonstrations on site to show the customer the possibilities for creating a meal.  The upside of this approach is that your customer will see, smell, and taste the product - the downside is that it is expensive and results in limited customer exposure. 

I would recommend a hybrid approach - shoot a short video - no more than one minute - showing customers how to cook a particular meal.  In order to fully engage your store associates in the promotion, have them submit the recipes and do the cooking.  Combine this with a menu planning card as a take away and you have fully engaged your customer and made a sale in the process.

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Loligo Squid

Loligo Squid is a calamari specie that is prized around the world for its flavor and consistency.  There are many different types of loligo that come from different countries.  Known as long fin squid, this specie has a transparent (plastic-like) quill for its backbone.  The US has two commercial harvested species of loligo calamari:  Loligo pealei and Loligo opalescens. 

Loligo pealei, also known as Boston squid, is commercially harvested on the East Coast from New Jersey to Maine. Prized as one of the most flavorful and naturally tender of the loliginidae, it commands a premium in the whole and cleaned calamari marketplace.  Product used to be harvested and cleaned in the USA.  Now, product is harvested in the USA, land or sea frozen, and oftentimes sent to China for processing.  Whole frozen Loligo pealei is exported to Europe or Asia.

Loligo Opalesens is known in the marketplace as California Calamari.  This specie of loligo is smaller than the pealei and although quite flavorful, it is considered tougher or chewier.  There is big retail (supermarket) demand for whole frozen of this specie packed in 3lb. window boxes.  Once again if there is good catching, product is harvested in the USA, land or sea frozen, and oftentimes sent to China for cleaning.  An El Niño or La Niña in the Pacific impacts catching quite dramatically.

Boston squid (pealei) is the most expensive of all the cleaned calamari in the US market.  It is not as abundant in the market as the imported loligo species (vulgaris, chinensis) but it is the premium standard for taste and tenderness.  The cleaned forms for these loligo species include:  Tubes and Tentacles, Tubes Only, Rings Only and Rings & Tentacles.  The size references the tube length of the cleaned squid body, 5/8 means each tube length is approximately 5-8 inches long.  8/12 means each tube length is approximately 8-12 inches long and so forth.  The tentacles are typically packed in the natural proportion that occurs….about 35%.

In my next blog I will review the imported species of Loligo squid and discuss how they compare to the domestic Loligo pealei.

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Great Seafood Sells - More than you might think

As the economy has gotten tougher and customers have looked to increase their buying power, seafood has become challenged to compete with other lower priced proteins in stores. Consequently, seafood has seen smaller increases in sales than any other proteins over the last 12 months. Consumers have transferred their food dollars from restaurants to the grocery store. In response to this and the need to work on tighter margins, retailers have been reviewing the viability of maintaining fresh seafood departments in every store. In some cases, based on the ROI per square foot, retailers have decided not to keep a service department and convert solely to a self-serve case. But, purely looking at ROI does not tell the whole story.  It does not provide the complete impact that a fresh seafood case can have on sales dollars and profits that a store generates.

One chain in particular discovered that the fresh seafood service case has a broad reaching impact on every department in the store. After removing a number of service cases, they found that store sales were suffering in most of the other departments. They noticed that a number of higher ticket items were showing softness in sales and that the average order size per customer was declining. Upon further inspection, it was determined that the withdrawal of the service seafood case drove customers to purchase their groceries elsewhere. These same customers tended to create more culinary experiences and drove the sales of many of the higher priced and potentially higher margin vegetable, dairy, grocery and meat items. Where the average consumer might have spent $75.00 per visit, the average service seafood case consumer would spend $125 per visit. Although the seafood department may represent only 2-3% of total sales in retail - the truth is that it has a greater impact on the success of the store. The results would lead one to believe that by effective merchandising of fresh seafood, highlighting its health and convenience benefits, and the cross merchandising of products, the percentage of customers who frequent the seafood case increases. This also generates a new contingent of customers who are interested in creating a culinary experience, not just a meal.

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The Luxury Backlash

This economic disaster has created widespread commodity deflation. With the exception of Farmed Salmon, which is suffering from a major crop failure in Chile, we have seen prices drop. Sometimes these price drops can be good for a product. Lower prices, historically, have lead to increased consumption, and we’ve seen this on a number of items this year. There are a category of items however that have experienced a disproportionate drop in value and seen consumption drop to boot. I’m talking about luxury seafood items. 

What is a luxury seafood item? You’d think that it would be defined by price, but that is only part of the story. Perception is the other part of the equation. How many people are buying Hummers right now? Not a lot. It’s not solely based on the cost.  According to Carprice.com the base price of a Hummer is $32,345. The base price of a Toyota Avalon is $32,145, virtually identical. The Hummer is actually cheaper on the lot. People aren’t buying Hummers because of the message of “in your face” luxury and crass commercialism. Three years ago it was a status symbol. Now, it’s an embarrassment. This same thing is happening in Seafood.

What have been the biggest losers this past year in seafood? Jumbo Lump Pasteurized Crabmeat, Jumbo Shrimp and Lobster tails. These items dropped in value precipitously when the economy softened. The worst part was that consumption dropped more quickly than the prices, and no amount of discounting could bring that customer base back into the fold. We’re almost a year into the new economic reality and what do we see with these items? The pricing is still at or near historic lows and demand is still relatively low. What’s to be done?

We have to reposition these seafood items and make them accessible to a wider range of customers. We have to take the smaller sizes of lobster tails and sell them at retail as an affordable luxury. We need to get large shrimp on the menus of midrange restaurants in preparations that are not too “snotty” and at prices that are reasonable. We need to change customers’ perceptions of the position of these items in the marketplace.

It wasn’t just our 401k values that changed when the economy went south. We also have experienced a major shift in culture, away from flash and pretention and towards modesty and value. No one is sure how long the economy will be bad. Similarly we don’t know when or whether we will see a shift in cultural values. We need to live in the present and build our business based on current realities. If we do this, we’ll create a stronger and more stable base of demand for all products.

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