U.S. Market Overview

Transcription

1 U.S. Market Overview

2 U.S. Total Seafood

3 Total Retail Seafood dollars have grown from $9.8 in 2011 to $11.9 billion in Fresh and Frozen account for a combined 80% of the sales while Shelf-Stable seafood sales account for 20% Note: Fresh does not reflect Food Service/restaurants - $9.4B market in N. America 3

4 U.S. Frozen Seafood

5 Total frozen seafood sales generated $5.35 billion in the last year. This represents an increase of $213 million (+4.1%) versus year ago. Shrimp now represents more than half of the total category. 5

6 The percent of US households consuming frozen seafood varies widely by species. 70% of households buy one or more species. The top four include Shrimp (47%), Pollock (24%), Tilapia (20%) and Salmon (16%). Frozen Tuna represents almost 2% 6

7 U.S. Frozen Tuna

8 With just below 2% of households purchasing, U.S. sales of frozen tuna (through retail channels) have nearly doubled since from $19.4MM to $37.3MM in the latest 52 Week Period 8

9 The typical US household demographic of frozen tuna purchasers tends to be Urban, mid-to-high income young adults as well as Boomers and suburban small families. Frozen Tuna - IRI Household Clusters Source: IRI Shopper Sights 2018 % Target US HHs % Volume Sales % HH Buying Dollars per 100 HH Index Top 10 O54 Striving Single Scene 2.7% 7.9% 2.9% 312 G25 Urban Edge 1.6% 2.9% 2.3% 205 P58 Heritage Heights 0.5% 0.8% 1.6% 201 L41 Booming and Consuming 1.0% 2.0% 3.5% 201 O53 Colleges and Cafes 0.9% 1.4% 3.7% 189 A04 Picture Perfect Families 0.7% 1.3% 3.1% 181 E19 Full Pockets Empty Nests 1.5% 2.4% 2.2% 162 A05 Couples with Clout 0.8% 1.2% 3.2% 155 O52 Urban Ambition 1.3% 2.1% 2.4% 154 D17 Cul de Sac Diversity 0.7% 1.1% 2.3% 151 Bottom 5 S70 Tight Money 0.2% 0.1% 0.7% 40 K38 Gotham Blend 1.3% 0.4% 0.9% 37 Q65 Senior Discounts 1.6% 0.5% 1.1% 34 N48 Rural Southern Bliss 1.5% 0.5% 0.9% 32 S69 Urban Survivors 1.6% 0.3% 0.8% 21 TOTAL US Households 100.0% 100.0% 1.8% 100 9

10 In relation to shelf-stable tuna, the U.S. Consumers of frozen tuna are closely aligned with more premium ambient solutions like canned albacore and tuna pouches FROZEN TUNA POUCH TUNA CANNED ALBACORE IRI PANEL - Total US - All Outlets BUYER INDEX - 52 Weeks Ending Dec CANNED FROZEN LIGHT TUNA TUNA POUCH TUNA CANNED ALBACORE 1 Person HH Person HH Race - White Person HH Race - African American Person HH Race - Asian Person HH Race - Other / Unknown Income lt $15K Income $ K Yngr Millennial: HH born Income $ K Older Millennial: HH born Income $ K Gen X: HH born Income $ K Yngr Boomers: HH born Income $ K Older Boomers: HH born Income ge $100K Seniors: HH born b CANNED LIGHT TUNA 10

11 U.S. Shelf Stable Seafood

12 Shelf Stable seafood accounted for $2.6 billion in sales over the last 52-weeks. Tuna purchases represent nearly three-quarters of the total category sales. 12

13 Most segments of Shelf Stable Seafood posted increases vs. the prior year. Core canned tuna products increased (Albacore +2% and Light Tuna +1%), with Pouch Tuna, Sardines and Ready To Eat Kits generating increases of 17%, 15% and 6% respectively 13

14 U.S. household consumption of shelf-stable seafood is 71.5% in total. Canned light tuna is purchased by 41% of households followed by canned albacore (27%), Pouch. Tuna (17%), Salmon (14%) and Sardines (12%) 71.5 Percent of US Households Purchase by Shelf-Stable Seafood Segment Source: IRI Panel - 52-Weeks Ending

15 Light tuna is the largest shelf stable tuna segment, contributing 39.4% of the dollars sold and 54.2% of the tonnage. Albacore, follows with 36.6% of dollars and 31% of volume sales. Pouch and RTE Kits are the smallest segments, but the fastest growing. Shelf Stable Tuna Dollar and Volume Share By Type Dollar Share Case Volume Share Source: IRI 15

16 Annual Shelf Stable Tuna dollar sales have rebounded back near the level of Overall case volume sales have eroded slowly with cans down 3.7 million cases (-12.4%) offset by a +1.3 million case gain for pouches and kits (+40%). 16

17 StarKist is the leading brand of Tuna in the U.S. market, accounting for 42% of the category dollars. Bumble Bee ranks #2 with 25%, followed by Chicken of the Sea (15%) 17

18 On a volume basis, Starkist accounts for 37% of Tuna sales, followed by Bumble Bee (23%) and Chicken of the Sea (17%) 18

19 The number of households purchasing canned tuna declined over the last 5 years by 4 percentage points. The largest decline was canned light tuna, whereas the percent of households purchasing Tuna Pouches and Ready-To-Eat Kits is increasing. 19

20 78% of US shelf-stable tuna sales are sold in Traditional Grocery stores (55%) and Walmart (23%). The three Club Stores (Costco, SAMS and BJ s) account for another 13%. 20

21 We believe that canned and pouch Tuna is positioned for growth given the incredible health benefits, it s an affordable lean protein and convenient for a quick meal or snack Consumer Trends Continue To Be Favorable For Tuna Consumer trends support growth opportunities Boomers and Millennials alike seeking better for you and cleaner product options that taste delicious Convenience is a critical factor in product offerings especially snacking and on-the-go solutions Consumers with fish forward attitudes and behaviors Shelf Stable Tuna fits consumer needs Protein is hot today Healthy, nutritious and convenient Low in fat, calories and cholesterol High in Omega-3 EPA/DHA and excellent source of protein Linked to reduction in heart disease, Alzheimer s, strokes Easy to prepare Affordable go to source of lean protein 21

22 There are multiple industry and NGO initiatives underway in the U.S. to educate and amplify the message about the health benefits of seafood across a diverse spectrum of stakeholders Leverage The Positive Science And Reach Key Targets Key Opinion Leaders RDs, MDs, Scientists Stakeholders Engagement & Accountability Consumers Pregnant/Nursing Moms Net Effects Report Medical Institutions & Associations Health Care Providers OBGYN, Peds, Nurses Media Traditional and Non-Traditional 22

23 We continue to closely monitor the conversation that is taking place in traditional/digital media and social media in regards to TUNA and have seen a sustained wave of positive stories/posts compared to negative 23

24 Finally, progress continues with the great work being conducted by ISSF Industry Commitment ISSF expects the tuna industry to demonstrate and deepen its commitment to sustainable fishing and responsible seafood sourcing From bycatch mitigation to product traceability, ISSF participating companies have committed to conforming to conservation measures and other commitments designed to drive positive change and to do so transparently through third-party audits Tuna vessels of all gear types can join ISSF s ProActive Register (PVR), an online database, and be audited on their compliance with select ISSF sustainability measures. ISSF participating tuna companies, representing 75% of the canned tuna industry, have each committed to comply with ISSF s conservation measures.

25 ISSF is currently in the process of rolling out their strategic goals for the next five years 2018 through 2022

26 ISSF is encouraged with increased participation and compliance among Tuna companies with conservations measures - and also with the growth of vessel registrations on the Proactive Vessel Registry (PVR). At the end of 2017, 966 vessels were registered,

27 Thank You And Enjoy The Conference!