Ensuring A Future Market For Shellfish A Introduction

Ensuring A Future Market For Shellfish A. Introduction 1. Source To Plate 2. Product To Consumer 3. Via Branding B. Ensuring The Future Market C. The Loch Fyne Brand D. Integrated Strategy E. Loch Fyne & Shellfish F. Sourcing Philosophy G. Oyster Strategy H. Mussel Strategy I. Critical Success Factors J. Summary

Ensuring The Future Market Ø Consumer Demand { Segment & Target { Aging Population { Over 50’s Wealth { Varied Tastes { Destination Consumers

TRENDS IN SEAFOOD - CONSUMER ATTITUDES (Mintel research 06) ~ 36% of population believe they should eat more fish ~ 34% SUBSTITUTING FISH FOR MEAT ~ 24% like fish but don’t like to cook it at home ~ 35% ARE MORE LIKELY TO EAT DIFFERENT TYPES OF FISH COMPARED TO 1 YEAR AGO ~ 62% say fish is the best way to consumer Omega-3 ~ 91% increase in salmon consumption by males aged 17 -24

MINTEL ANALYSIS ~ 2006 – FISH OUTSELLS CHICKEN FOR FIRST TIME WAITROSE ~ Forecast 35% growth in UK seafood sales between 2002 - 2011 ~ Retail sales - value growth 2 x volume growth - price not an issue? ~ PROVENANCE – MAJOR ISSUE IN RETAIL – PUSHED BY MEDIA ~ Alternative species should be championed ~ SINGLE MOST IMPORTANT SHIFT & BIGGEST MOVEMENT IN ANY FOOD SECTOR IN RECENT YEARS = SUSTAINABILITY

UK POPULATION TRENDS ~ Overall population to increase 4. 2% 2000 -2010 BUT over 65 population to grow 14. 5% in same period ~ Over 65 s = 16% of population WILL BE 23% by 2031 ~ Over 85 s - new record 1. 2 million ~ Population age (median) 38. 2 years - was 34 in 1975 ~ Over 65 s have 80% of wealth

WHAT DO OUR CUSTOMERS THINK Topline from 2006 survey ~ QUALITY OF FOOD MOST IMPORTANT FACTOR + SCORES HIGHLY ~ SERVICE comes next - relaxed, friendly - liked by most ~ BRAND - seen as guarantee of quality, provenance ~ FISH - LFR = Fish. 35% customers are fish lovers ~ 80% - eat fish at least once a week ~ AVERAGE customer eats at LFR 3 -5 times a year (8 -10% of all meals eaten out depending on site/city) ~ SUSTAINABILITY IS ‘VERY IMPORTANT’ TO 60% OF OUR CUSTOMERS ~ NEW FISH VARIETIES: OVER 80% INTERESTED IN TRYING NEW, ENVIRONMENTALLY FRIENDLY VARIETIES ~ FEW use restaurant guides - local and national press influential

MARKETING CONSIDERATIONS ~ ETHICAL CONSUMER Ø Increase profile of Loch Fyne as an environmental pioneer BUT keep sense of humour ~ HEALTHY EATING Ø Continue to talk up health benefits of fish in comms ~ GROWTH IN SEAFOOD Ø Opportunity to experiment - Ugly Fish, Seafood Week ~ AGEING POPULATION ~ NEW MEDIA ~ SITE DIVERSITY Ø Early birds, loyalty, groups Ø Interact with customers, targeted promos, web innovation Ø Trial promotions, ‘site’ profiles and site specific activity

Meeting The Demand { Effective Route To Market { Satisfy The Target Consumer ~ ~ ~ Quality Variety Service Provenance Sustainability Environment { Branding Is Critical ~ Reassurance ~ Security ~ Value CONSUMERS BUY BRANDS NOT PRODUCTS

THE LOCH FYNE BRAND Our Brand Values ~Quality ~Sustainability ~Provenance ~‘Local’ ~Service

Integrated Strategy Backward Integration Shellfish BRANDING LOCH FYNE Fresh Fish Meat Own Products ~ Aquaculture ~ Smokery Forward Integration LF Own Retail GF Contract Partners Premium Retail & Food Service

Loch Fyne & Shellfish { Sourcing Philosophy { Own Products Philosophy ~ Oyster Strategy ~ Mussel Strategy

Critical Success Factors For The Future ~ Supply ~ Quality ~ Food Safety ~ R&D ~ Training / Recruitment

SUMMARY ~ ~ ~ ~ Trends All Positive No Compromise On Quality Sustainability Is Here To Stay Branding Is Key Effective & Efficient Route To Market Profit In The Supply Chain Is Essential Long Term Future Depends On A Joined-Up Approach ~ Competition Will Be Aggressive BUT Heritage & Quality Will Prevail