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Issue link: https://seafoodbusiness.epubxp.com/i/214698
Distributor Survey The Big Picture challenges include rising fuel prices (45.8 percent), expanding their seafood sales (25 percent), sustainability certifcation (20.8 percent), U.S. Food and Drug Administration testing (15.8 percent) and HACCP (Hazard Analysis Critical Control Points) compliance (11.9 percent). Hitting the sales sweet spot What were your 2012 seafood sales? $250 - $499,999 $500 - $999,999 $1 - $4.9 million $5 - $9.9 million Despite increased quality and food-safety measures from overseas suppliers, distributors say their customers are still concerned about whether products are domestic vs. imported and wild vs. farmed. According to this year's survey, 39.6 percent of distributors say customers are concerned about domestic vs. imported product, compared to 33 percent in 2011. Half (50.4 percent) say their customers are concerned about whether seafood is wild vs. farmed, compared to 43 percent in 2011. "Imported seafood is a huge part of our business. If we went with all domestically produced product, there is not enough seafood for everyone," Swanes says. Northern Fish's clients are not typically concerned about buying imported seafood, according to Swanes. Tey simply want to know all their options before making a purchasing decision. "Everyone wants to be presented with the options, such as what is the current price and availability of prawns out of the Gulf versus imported shrimp," he says. Lasprogata is concerned that the seafood industry hurts itself when it compares wild and farmed species. "For example, Alaska did a nice job marketing the wild salmon, but why did they SeaFood Business $50 - $99,999 $100 - $249,999 Where itÕs from 36 Under $50,000 $10 - $19.9 million $20 - $49.9 million $50 - $99.9 million $100 million or more 0% 5% 10% 15% 20% Making the margin work What was your gross proft margin from seafood sales in 2012? 19.1% 1% to 20% 21% to 40% 78.2% have to put [farmed salmon] down? Farmed salmon is a good product and we deal in both," Lasprogata says. "Over 50 percent of the products we sell are farmed, up from 10 to 15 percent around 10 years ago," he adds. "Te prevailing consumer view — not our view — is that aquaculture is not sustainable. Although the wild species are exciting, it is not usually [workable] for someone who has designed a program in April and is making their purchase in September," Swanes says. Close to home December 2013 While wild vs. farmed and imported vs. domestic seafood are hot issues, sourcing sustainable and local seafood are also top-of-mind for retail and foodservice buyers; 45.8 percent of distributors say customers are asking for more local seafood, versus 40 percent in 2011. About 46 percent say their clients are asking for sustainable and/ or certifed sustainable products this year. While buyers are seeking sustainable seafood, there is a lot of confusion because of the wide variety of eco-labels and certifcation schemes out there, distributors say. To that end, many buyers are focusing more on local sourcing. "Tere is so much confusion about sustainability, so some people say, 'I understand geography and I want to help local, family businesses, so I will just go with local,'" Swanes says. Most distributors have expanded their product lines over the past two years; 17.7 percent carry between 200 and 399 products, 15.8 percent have between 15 and 49 products and 15 percent feature between 100 and 199 seafood SKUs. "We handle 30 to 40 different varieties daily, but have access to between 300 and 400," Lasprogata says. Diversifcation is increasingly common, as 53.1 percent Visit us online at www.seafoodbusiness.com