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SeafoodSeafoodMarkets & TrendsMarkets & Trends
John PollockDirector of Merchandising - Seafood
SYSCO CorporationHouston, Texas, USA
U.S. EconomyU.S. Economy% change vs. prior year% change vs. prior year
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
CPI - All Goods CPI - Food at Home CPI - Food Away from
Home
Aug
Sep
Oct
Nov
Source: Technomic
Meals PreparedMeals PreparedAway From HomeAway From Home
35
40
45
50
55
60
65
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
00
01
02
*
% of each food dollar to Retail% of each food dollar to Foodservice
50.2%
49.8%
Source: Technomic* Projected
CY02Projection
2002 2003
• Restaurants and Bars 3.4% 3.7%• Retails Hosts 2.5% 2.5%• Travel & Leisure -4.0% -0.7%• Business & Industry -2.0% 0.0%• Education 2.8% 2.5%• Healthcare 0.3% 0.4%• All Other 2.4% 2.5%
• Total Foodservice 2.4% 3.0%
Segment Growth ForecastSegment Growth Forecast% nominal growth% nominal growth
33%Increase
!
• Thinking out of the box
Practical ExercisePractical Exercise
Is the glass half full or half empty?
Maybe it is simply the wrong size!
• Customers are looking for true Value- Added 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 TrendsCurrent 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 TrendsCurrent Situation and Trends
• Questionable application of regulations– California Prop 65
– State imposed trade restraints different than FDA (Louisiana chloramphenicol statute)
“Nearly all fish and seafood contain some amount of mercury and related compounds . . .”
Current Situation and TrendsCurrent Situation and Trends
• Abuse of trade laws with no true industry benefit– Crawfish– Atlantic Salmon– Blue Crab– Domestic Catfish– Domestic Shrimp
Current Situation and TrendsCurrent Situation and Trends
• Press sends mixed / confusing messages
Current Situation and TrendsCurrent Situation and Trends
PeTA.com
E Magazine
BusinessWeek January 27, 2003
TIME Mother Jones EPA February 2003
Current Situation and TrendsCurrent Situation and Trends
• Proliferation of third party regulators
• 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
Bringing Seafood to MarketBringing Seafood to Market
QuestionsQuestions??
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