GAA Master Slide--Bali

Report
Seafood
Markets & Trends
John Pollock
Director of Merchandising - Seafood
SYSCO Corporation
Houston, Texas, USA
U.S. Economy
% change vs. prior year
2.50%
2.00%
1.50%
Aug
1.00%
Sep
Oct
0.50%
Nov
0.00%
-0.50%
CPI - All Goods
Source: Technomic
CPI - Food at Home
CPI - Food Away from
Home
Meals Prepared
Away From Home
65
60
CY02
Projection
55
50.2%
% of each food dollar to Foodservice
% of each food dollar to Retail
50
49.8%
45
40
Source: Technomic
* Projected
02*
01
00
99
98
97
96
95
94
93
92
91
90
89
88
87
86
85
84
83
82
81
80
79
77
78
76
75
74
73
72
35
Segment Growth Forecast
% nominal growth
•
•
•
•
•
•
•
Restaurants and Bars
Retails Hosts
Travel & Leisure
Business & Industry
Education
Healthcare
All Other
• Total Foodservice
2002
2003
3.4%
2.5%
-4.0%
-2.0%
2.8%
0.3%
2.4%
3.7%
2.5%
-0.7%
0.0%
2.5%
0.4%
2.5%
2.4%
3.0%
33%
Increase
!
Practical Exercise
• Thinking out of the box
Is the glass half full or
half empty?
Maybe it is simply the
wrong size!
Current Situation and Trends
• Customers are looking for true ValueAdded benefits
– Labor savings
• Peeled, cooked, deveined, etc.
– Waste / shrink control
• IQF, portion control, re-sealable containers, etc.
– Unique recipe ideas
• Flavors, breading/batter, presentation, etc.
Current Situation and Trends
• Still significant sub-standard product sold
–
–
–
–
Mislabeled
Short-weight
Count not in range
Poor quality
• Toughest competition is not seafood
– Poultry & Pork prices are lowest in 10 years
– Beef prices are significantly lower over past 18 months
– Politicians attempting to protect their constituents
through political rather than scientific trade restraints
Current Situation and Trends
• Questionable application of regulations
– California Prop 65
“Nearly all fish and
seafood contain some
amount of mercury and
related compounds . . .”
– State imposed trade restraints different than FDA
(Louisiana chloramphenicol statute)
Current Situation and Trends
• Abuse of trade laws with no true industry
benefit
–
–
–
–
–
Crawfish
Atlantic Salmon
Blue Crab
Domestic Catfish
Domestic Shrimp
Current Situation and Trends
• Press sends mixed / confusing messages
PeTA.com
BusinessWeek January 27, 2003
TIME
Mother Jones
E Magazine
EPA February 2003
Current Situation and Trends
• Proliferation of third party regulators
Bringing Seafood to Market
• Encourage responsible fishing practices
– Promote sustainable & renewable resources
– Conduct business with reputable companies
– Resist the temptation of short-term economic gain
• Vigorously extol the benefits of all seafood
– Do not promote one sector as better than another
– Consumers look at the industry as a whole, any
defamation implicates all of us
• Promote free and open trade
• Listen to your customers
Questions?

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