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Issue link: https://seafoodbusiness.epubxp.com/i/233790
Top Story — Phil Gibson, senior VP, Encore Associates throwing hard-earned money into the trash if they fail with the frying pan. "We think about why [seafood consumption] hasn't catapulted over the past couple of years," says Phil Lempert, editor of SupermarketGuru. com, which boasts a consumer panel 110,000 strong that provides a steady stream of retail behavior patterns and data to analyze. His data shows the seafood department is extremely challenged. "Tey're afraid," adds Lempert, referring to consumers' apprehension to cooking seafood at home. "Te funny thing is, there's so many ways to make it. It's illogical." Lempert, who also makes frequent appearances on the "Today" show and has studied consumer behavior in the retail landscape for more than a quarter century, pins the blame on the seafood industry for lacking a coherent message and on retailers for failing to educate their shoppers — along with their own workers. "And it doesn't instill a lot of confdence when those little signs say 'previously frozen' in the fresh seafood case. Seafood has an enormous amount to ofer," he says. "I'm so frustrated." He's got company. When $800 a ton to $2,000. It's created "sticker shock" among seafood buyers, he adds. Te product still ofers tremendous value and remains one of the most affordable protein options in any store. Lischewski says the industry needs to do more to meet consumers where they're at, besides just ftting into their budgets. "Te reality is [canned tuna] is not as convenient as it can be. Te deli is seen as more convenient," he says. "We've lost [sales] to other sandwich spreads like peanut butter, which is a protein. We've lost ground to yogurt, predominately among the female population. And if you go into ofces in the U.S. today, lunch isn't a sandwich anymore — it's [a frozen meal] you can toss in the microwave for 2 minutes. We have health, but not convenience." Lischewski dispels any notion that methylmercury fears are driving down demand for what was once one of America's top pantry items. A bigger budget chunk U.S. per-capita food expenditures $5,000 Adjusted to 1988 dollar value $4,000 $4,382 $3,281 $3,000 $2,441 $1,584 $2,000 Shelf unstable For generations, if there were anything guaranteed to be found in your average family's pantry, it would be canned tuna. Afordable, healthful and shelf-stable, it's been a nutrition mainstay for consumers in all income brackets. But trends are trends, and tuna is tanking: Te decline in canned per-capita tuna consumption is, in a word, stunning. Just in the past decade, U.S. per-capita tuna consumption has fallen from 3.4 pounds to 2.4 pounds. Christopher Lischewski, CEO of Bumble Bee Foods in San Diego, says a number of factors have contributed to the regression, led by prices infated by a general decline in production. Raw material costs for skipjack tuna over the past decade have shot up from Visit us online at www.seafoodbusiness.com $1,000 $369 $419 1953 1963 Source: USDA/BLS "You have a consumer who is much more conscious of how far their dollars are going to go. Seafood is not viewed as a staple — it's a nice-to-have." NOAA Fisheries revealed in late October that seafood consumption fell yet again, the moans could be heard from the Aleutian Islands to Acadia National Park. Is the recession that began in late 2008 still a major factor? What about negative media about seafood, including fears of methylmercury? Maybe seafood is just not seen as essential. "We're our own worst enemy," says Phil Gibson, senior VP of retail consultants Encore Associates in San Ramon, Calif. "We have a relatively pricy protein to start with, and frequent price spikes that make it even less competitive with the other proteins. And since '08, you have a poor economy you're fghting against. You have a consumer who is much more conscious of how far their dollars are going to go and a commodity that is constantly increasing in price. [Seafood is] not viewed as a staple — it's a nice-to-have." $718 $0 1973 1983 1993 Pricey proteins 2003 2012 % change in 2012 Forecast changes in Consumer Price Index % change for 2014 8% 6.4% 5.5% 6% 4% 3.5% 3% 2.5% 2.4% 3% 2% Source: USDA the battle for the center of the plate. It costs too much for consumers sticking to tight budgets. But worst of all, many people are simply scared about potentially 0.3% 0% Beef Pork January 2014 Poultry Seafood SeaFood Business 19