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June 2018 Japan Market Update • According to a Survey by Japan

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June 2018 Japan Market Update • According to a Survey by Japan ASMI International Activity Report ASMI Japan FY17/18 April – June 2018 Japan Market Update According to a survey by Japan’s Ministry of Internal Affairs and Communications (MIAC), total expenditure on seafood per Japanese household in April 2018 was JPY 5,736 (US$52.15), down 8% down from the previous year in April. In May it was JPY 5,825 (US$52.95), down 7% year-on-year. This marked the largest decline in 14 months. On the other hand, expenditures on fresh meat rose 3% from the previous April (JPY 5,898 = US$53.61), and 2% from May 2017 (JPY 6,055 = US$55.04). The average CIF of imported Alaska surimi price per kg in March was JPY 319/kg (US$2.90/kg), up 35%, compared with the same month last year. In April, JPY 328/kg (US$2.98/kg), up 21%. Because of the price increase of “A-season surimi,” almost all surimi producers must increase the end prices at an average 10% from end of August, 2018. The imported quantity of surimi from the USA in April dropped dramatically for the first time since 1990 which may trigger competition for surimi products with current high demand from the EU, China, Korean, and Thai markets. Meanwhile, Japanese surimi producers have developed new surimi items such as, “Salad Fish,” as a chicken substitute, popular among female consumers as well as “Imitation eel meat” and other surimi products to add to lunchboxes triggering “Insta-genic” Instagram photos on Japanese social media. A seafood importer in Japan imported frozen king and sockeye salmon roe by air shipment and produced sujiko in Hokkaido as a first trial. The first wholesale price of the new sujiko in May 2018 was JPY 4,500/kg (US$40.90/kg). Meanwhile, two other importers in Japan imported young sujiko (non-frozen) produced in Alaska with a wholesale price of JPY 6,200/kg (US$56.36/kg), up 30% compared with the same month in the last year. The wholesale price of 4/5 lb. dressed sablefish which saw a decline in 2017 has increased in value up to JPY 2,700/kg (US$24.54/kg) in recent months. However, the wholesale price for old inventory sablefish dropped dramatically in April and May 2018 because of the previous comparatively higher price; it decreased to JPY 1,750/kg (US$15.90/kg). Some Japanese seafood companies who haven’t sold their old stock just started to sell their old stock below market value (minus JPY 900 – JPY 800/kg = US$8.18 – US$7.27/kg). ASMI International Activity Report Japan March –June 2018 p. 2 Activity Number: M17GXJAXC1- Consumer Public Relations Activity Budget Spent to Date: $123,906 Activity Description: ASMI targets consumers through magazines and other traditional media as well as online, and activities include interviews with ASMI headquarters and ASMI Japan staff, press releases and press visits to Alaska (both independently as well as in cooperation with the State of Alaska Tourism Office). ASMI also places advertorials with overviews of Alaska seafood, sample recipes and nutrition benefits. Recently, not only is ASMI Japan focusing on placing advertorials in magazines/newspapers/web but also connecting these promotions to real purchasing and/or tasting opportunities through these media networks. In addition to media activities, ASMI also conducts Alaska Seafood Fairs and produces point of sale materials. All activities promote the natural, sustainable, high-quality and delicious aspects of Alaska seafood, and whenever possible also include a call to action such as details on where to buy to how to prepare Alaska seafood. JJ58: Alaska Finger Food Booklet and Advertorial on Bi-Premium Date of Activity: April 2018 Summary of Activity: ASMI Japan produced an Alaska Seafood Finger Food Recipe Book and an advertorial with Bi- Premium Magazine. The recipe book featured collaborative material with the Japan Finger Food Association, an organization with the aim of promoting finger food throughout Japan. Executive Director Yoshie Maruyama developed eight recipes using Alaska pollock surimi (surimi crab leg), Alaska pollock roe, sockeye salmon and herring roe (two recipes per fish variety). The eight-page booklet includes general Alaska Seafood information and eight finger food recipes using Alaska Seafood. 1,000 copies will be printed for various usage, such as distributing at consumer events. The advertorial consists of five pages for the 2019 Spring issue, featuring Alaska seafood including Alaska pollock surimi (surimi crab leg), Alaska pollock roe, sockeye salmon and herring roe. The advertorial pages in Bi-Premium promote Alaska seafood to the target audience, (mainly women in their 30s and 40s, in an attractive, appealing way. Results: Five pages of Alaska finger food recipe on Bi-Premium Magazine (circulation 80,000 per month), and 1,000 copies of recipe booklets for distribution. ASMI International Activity Report Japan March –June 2018 p. 3 ASMI International Activity Report Japan March –June 2018 p. 4 ASMI International Activity Report Japan March –June 2018 p. 5 JJ58: Alaska Seafood Recipe Card Production Date of Activity: Spring 2018 Summary of Activity: ASMI Japan created the 18 new recipe cards using Alaska seafood: Recipes by Naoyuki Yanagihara 1. Deep fried Alaska pollock 2. A mixture of pollock roe, bamboo shoots and wakame seaweed 3. Herring roe served with spicy pollock roe 4. Grilled POP with Saikyo miso sauce 5. Deep-fried yellowfin sole topped with shaved tororo konbu kelp 6. Shredded Pacific cod, boiled with sugar and soy sauce 7. Sockeye salmon oshizushi (pressed sushi) 8. Snow crab with fine wheat noodles (somen) Recipes by Maron 1. Black cod dumplings 2. Creamy pasta with black cod 3. Maron-style tartine 4. Potato pancake-style oyaki 5. Pasta salad of grilled Alaska pollock roe and herring roe 6. Sockeye salmon dumplings 7. Creamed pasta of spring vegetables 8. Cold pasta with drizzled oil and herring roe 9. Herring roe sandwich Recipes by Keita 1. Alaska roll with Alaska pollock roe Results: Greater recognition of Alaska seafood and the Alaska seafood brand through increased access to and awareness of Alaska seafood recipes and the logo in retail stores and at consumer events. ASMI International Activity Report Japan March –June 2018 p. 6 ASMI International Activity Report Japan March –June 2018 p. 7 ASMI International Activity Report Japan March –June 2018 p. 8 ASMI International Activity Report Japan March –June 2018 p. 9 ASMI International Activity Report Japan March –June 2018 p. 10 ASMI International Activity Report Japan March –June 2018 p. 11 ASMI International Activity Report Japan March –June 2018 p. 12 ASMI International Activity Report Japan March –June 2018 p. 13 ASMI International Activity Report Japan March –June 2018 p. 14 ASMI International Activity Report Japan March –June 2018 p. 15 JJ71: Advertorial in Bon Marche Online, Asahi Shimbun Digital Date of Activity April 2018 Summary of Activity: To encourage consumption of herring roe by generating another event for consumers to purchase herring roe, the Japanese herring roe processors association established "Herring Roe Day" on May 5, 2017 and again on the same date in 2018. The advertorial included three conventional recipes for herring roe, to show that herring roe is not only for New Years but to be enjoyed throughout the year through innovative recipes by Japanese cooking specialist Maron. It also featured information on Alaska-sourced herring roe and Herring Roe Day. Results: - 1 page of Alaska Herring roe recipes in Bon Marche Online (April 2018 issue), over 10,000 PVs for the tie-up page ASMI International Activity Report Japan March –June 2018 p. 16 Current Quarter Results: JJ58: Alaska Finger Food Booklet: April 2018, circulation: 80,000 monthly JJ69: Alaska Seafood Recipe Card Production: 18 recipes produced. JJ71: Media tie-up with Bon Marche Online: April 2018; PVs 10,000 Cumulative Fiscal Year Results: JJ01: Collaboration with Costco; Aug 2017 - Feb 2018; 5,544 bags of Alaska pollock Surimi crab leg sold August - mid-September, total value of $84,530 (JPY 9,313,920). JJ02: Advertorial in Saita Magazine and Retail Promotion at Ito Yokado; August 2017; approx. US$545,437 sales of sockeye (95.8% increase y-o-y); SAITA magazine circulation: 180,050 monthly J37: Advertorial in Bon Marche, Asahi Shimbun; Bon Marche circulation: 3,000,000 daily, two herring roe recipe cards: total 10,000 copies. JJ42: Canned Alaska Salmon Promotion support; label with AK Seafood logo printed for canned sockeye salmon: 20,000 cans, and pink salmon: 28,000 cans. JJ30: Sogo Seibu Department Store Gift Season Promotion; November to December 2018; circulation; 600,000 copies annually JJ34: Media Tie Up with Ryori Tsushin; Dec 2017 - Feb 2018, Ryori Tsushin circulation: 80,000 monthly JJ52: Media tie-up with Wine What?! Magazine/online; March 2018; circulation: 40,000 monthly; website PVs: 35,000 JJ53: Media tie-up with Meets Regional Magazine; March 2018; circulation: 150,000 monthly JJ58: Alaska Finger Food Booklet: April 2018, circulation: 80,000 monthly JJ69: Alaska Seafood Recipe Card Production: 18 recipes produced. JJ71: Media tie-up with Bon Marche Online: April 2018; PV 10,000 Activity Number: M17GXJAXC2- Consumer Promotions Activity Budget Spent to Date: $34,902 Activity Description: To increase Japanese consumers’ knowledge of the selling points of Alaska seafood, establish premium positioning and influence purchase behavior, ASMI Japan also conducts outreach activities directly to consumers outside of retail or HRI outlets. These activities often include the chance to try Alaska seafood firsthand, such as Alaska seafood cooking classes, chef demonstrations, taste-tests, events featuring the Alaska Seafood Celebrity Ambassador and large scale consumer shows, such as JATA (Tourism EXPO Japan). ASMI Japan partners with allies such as the ATO, the State of Alaska Tourism Office and Japanese trade promotion partners as often as possible.
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