Recent Developments in Marketing of Fish

Recent Developments in the Branding & Marketing of fish products

OECD/FAO Roundtable on EcoLabelling & Certification in Fisheries

The Hague 22 nd 23 rd , April 2009

Peter Hajipieris Birds Eye Iglo UK & Europe Director of Sustainability & External Affairs

1. Who is Birds Eye Iglo?

2. Marketing of Fish – some basics

3. Communicating Sustainability complex

4. Going Forward – some opportunities

5. Summary

# 1 frozen food company in Europe

€1.3bn sales

Household brands

UK, Germany, Austria, France, Belgium, Netherlands, Portugal, Hungary, Romania, Russia, Turkey

Fish, Vegetables, Poultry, Red Meat, Ready Meals

3 world class facilities

UK x1 • Germany x2

One of largest frozen fish factories in the world in Bremerhaven, Germany

Birds Eye Iglo Market Share in Fish & Vegetables

Fish Veg

#1 #1 UK 24% 24%

#1 #1 DE 19% 39%

#1 #1 AT 68% 81%

Climate Change

Sustainable Sourcing

Ethical Sourcing

Packaging & Waste

Water Use

Transport Efficiency

Birds Eye Iglo has been instrumental in championing Sustainable Fisheries Development

Unilever/Birds Eye Iglo & WWF founded the MSC Production Retail Sustainable Fisheries Development Fisheries Improvement Partnerships MSC Certified Fisheries Programmes

.. some basics

Reflects consumer culture and product life cycles

Signals a difference in Quality, ingredients or recipe

Signals a difference in price points

OnPack Messaging e.g. nutrition, origin

Single Indicator social or responsibility dimensions e.g. ‘Sustainable’ Fishery Status ‘Responsible’ Fish Farming practice

e.g. Food Safety, Sustainable Fisheries Management, Responsible Farming

National International Industry Global Centric Fisheries Fisheries Change Change Change

Time/Progress © Birds Eye Iglo 11 Communicating product states is complex

Time ---Illustrative

Icing of Fish Freezing of Fish

Food Safety Typical Fish Industry Quality Freshness Standards Development Modified Air Packaging

Hazard Analysis

Fish starts to deteriorate the moment it is caught Keeping it in a chiller or on ice, slows the deterioration But freezing effectively ‘stops’ it

Frozen

On Ice Quality Quality

Chiller/Fridge

Time

“Fresh fish decays by the second”

“Freezing stops the clock”

via media communications

Birds Eye Sponsorship

World Fisheries Production

• IUU Estimates: <>25% EU fisheries rated Aquaculture viable but irresponsible • World Discards: <>8% at 82% ‘Overexploited’ practices have damaged perceptions

Environmental Risks Food Resource Risk SocioEconomic Risks

Environmental Impact Lack of international Food Resource Risk standards alignment SocioEconomic Risks

Evolution of a Multitude of Stakeholder Efforts

Time ---Illustrative

Icing of Fish Freezing of Fish

National International Global Industry Fisheries Food Safety Centric Fisheries Change Change Change Quality Freshness

Modified Air Packaging

Hazard Analysis HACCP

Responsible Farming Traceability Now Sustainability EcoLabelling

2009

1. Price 2. Best Before date Consumer 3. Freshness Feedback 4. Physical appearance 5. Food Safety 6. Climate Change 7. Sustainability

Omnibus seafood product consumer insights 2009

Environmental Focus is on ecological or environmental Economics based management of food SOCIAL production

But Economics must be right as well to deliver social gains

“Over 75% of the “25% of the worlds worlds fisheries are fisheries are overexploited” overexploited”

Some eNGO Claims UN FAO Data

(since last OECD Challenges of Fisheries Globalisation Conference, 2007)

Example Change or Action

EU – IUU Reg’s Regulatory change to assist fight against IUU challenges

Ecolabel Misuse Examples where Ecolabels misrepresented for Quality

FIP Model Fishery Improvement Model now adopted by new NGO’s to drive change or support businesses e.g. SFP

(since last OECD Challenges of Fisheries Globalisation Conference, 2007)

Example Change or Initiative

Established in markets globally – most widely adopted MSC wildcapture certification scheme – management tool

NGO ‘Traffic Light’ Designed to alert consumers to more sustainability Fish Lists choices not well received by market

Supermarket League tables showing ratings based on perceived Surveys ‘sustainability performance’

(“UK Consumers will only eat Cod Fish Fingers”)

.so Birds Eye tried Hoki

and Hoki did not work X

‘Omega 3 Fish Fingers’ biggest branded food launch in sustainability arena in last 10 years Relieved pressure on Cod

However, examples like this are rare

Aspect Industry Opportunity

1. Governance Public & Private Frameworks & Partnerships can work Providing the agreed outputs are clear at the start

2. Communication Align terminology for Fisheries Sustainability FAO fisheries rating descriptors liable to confusion

3. Incentivise We should reward positive change Transitional ‘Abandonment’ allows poor practitioners to win Fisheries whilst society loses Developing countries needs are relevant to debate

4. Certification Wild not the same as Aquaculture – so clarify the Alignment principles and criteria for standardisation

RISK Recovering 1%

Depleted 7%

Overexploited 17%

Fully exploited 52%

Moderately 20% exploited

Underexploited 3%

0% 10% 20% 30% 40% 50%

Market confusion

Complex to communicate

Duplication of supply chain costs

Interoperability of standards weak

Industry resources not focussed

Standards misalignment

Audit process misalignment

Incentivisation process is misaligned

suggested ‘Wish list’ for Fish Certification Schemes

1. Does it operate to internationally agreed or harmonised reference?’’

2. Standards Inter operability – aligns to principles of standardisation

3. Certification process e.g. EN450011 / ISO65 / ISEAL compliant ?

4. Governance & Transparency of operating Management Board

5. Credibility of Issuing Organisation (gained from above)

6. Ease of use by industry – simple language

7. Affordability Cost Structure incentivises market to adopt standard

8. Continuous Business Improvement Process is inbuilt

9. Label Declarations consider ISO14020 aspects

Consumers Consumers Industry Dilemma Now cannot want clarity Process from Brands ‘Ecolabel Noise’

Better & simpler design of user frameworks

Align incentives

Align standards

Align audit processes

Honest, transparent scheme claims

Fish is a wonderful, nutritious, fun food!

Birds Eye Salmon Fish Fingers TV advert

Thank You