Alaska Seafood Marketing Institute Says “The Tide Has Turned”

Seattle, Washington, August 29, 2005 – Alaska Seafood Marketing Institute (ASMI) retail marketing director, Larry Andrews announced recently that, “The tide seems to have turned with many branded and private label products in the frozen seafood category seeing sales on the increase as a new consumer group following emerges.”  Indeed, according to Refrigerated and Frozen Foods June 2005 State of the Industry Report, the retail seafood category has undergone a makeover of massive proportions during the past few years, with many new products sporting savory sauces or other gourmet ingredients.  The species offering has also been expanded in the frozen section to include salmon, halibut, cod, pollock, sole and crab.  Frozen seafood sales grew three percent to reach $1.6 billion during the 52-week period ending April 17, 2005 (excluding Wal-Mart), says InfoScan data from Chicago’s Information Resources, Inc.  Unit sales were also up three percent during the same timeframe.  While these data indicate relatively modest growth, the sheer abundance and appeal of new product introductions – combined with our nation’s rising concerns about health – seem to point to a bright future.  According to a recent study commissioned by Red Lobster and performed by Rochester, N.Y.-based Harris Interactive, 51 percent of American adults who have ever eaten seafood say that they are eating more seafood than they did five years ago.  Enter value-added frozen seafood.

While products such as sauced or flavored frozen seafood products made an entry into the market in the early 90s, the frozen category remained stigmatized by lack of innovation and quality issues and consumers did not respond.  Driven by would-be cooks with too little time, consumer lifestyle plays a huge role in the success of any new offering. Consumers in 2005 may be more time pressed than ever; but they are also increasingly aware of the health benefits of eating seafood and will not sacrifice flavor.  Furthermore, even the busiest of today’s consumers are “hiving” and returning to more traditional values of sitting down to dinner with friends and family.  It’s these factors, along with improved product lines, that are sending the same consumer that normally shops only at the perimeter of the store into the frozen aisle.

ASMI’s Larry Andrews speaks to the technological aspects contributing to this trend.  “Freezing methods and quality control methods have been greatly improved in the State of Alaska over the past five years.  Fisherman and processors understand quality and the flavor tastes 100% fresh because the seafood is processed and frozen within hours of the catch. In fact, it's often frozen at sea.  Additionally, consumers are also beginning to realize that frozen or previously frozen is not an indicator of low quality, but rather a way high-quality product can be handled across the supply chain.  In many cases this provides a product that can be “fresher” than that found at the seafood counter.  Seafood quality cannot be improved once a fish leaves the water; it can only be maintained. The Alaska seafood industry has found high-technology freezing to be a superior method of preserving seafood quality and ASMI is getting that word to consumers and retailers.”

Forward thinking retailers and club warehouses have been instrumental in getting consumers to try frozen seafood.  They are capitalizing on the frozen case that provides both lower labor costs and significantly lower shrink than the fresh case; and are now carrying a large variety of frozen items that consumers are looking for.  Successful retailers have dedicated the resources to educate the consumer and to aid their shoppers as they learn that good seafood may be available to them in more than one location in the store.   The surprise to most retailers is when they promote the frozen seafood line on a consistent basis they can build their sales to new levels and at the same time promote seafood as a pantry item that can be on hand and readily available for quick to fix meals.

The Alaska Seafood Marketing Institute is the State of Alaska’s official seafood marketing arm.  It is a public agency of the State of Alaska, funded by the Alaska seafood industry and federal grants.  ASMI promotes Alaska Seafood throughout the U.S. and in 17 other countries.  ASMI also provides education and training to the seafood industry in food safety and quality assurance practices.

Alaska’s Bering Sea and Gulf of Alaska Pollock fisheries were recently certified as sustainable to the Marine Stewardship Council (MSC).  Alaska Salmon fishery is the only salmon fishery certified as sustainable to the MSC. For more information please go to www.alaskaseafood.org.

Contact:
Debra Arbogast
Schiedermayer & Associates
619/702.7500