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ASMI International Activity Report ASMI Japan FY17/18 January – March 2018

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ASMI International Activity Report ASMI Japan FY17/18 January – March 2018 ASMI International Activity Report ASMI Japan FY17/18 January – March 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 2017 was JPY 61,864 (US$578.16), down 3.6% from the previous year, a decrease for the second year in a row. On the other hand, meat expenditures rose 1.0% from the previous year (JPY 69,388, US$648.48). Salmon The total harvest quantity of Japanese chum salmon in 2017 was 66,474 tons (19,816,000 fish), down approximately 30% year-on-year. Mini Stop CVS started selling rice balls made using MSC sockeye salmon from Bristol Bay and Alaska pollock roe for the first time in its 300 stores in the Tokyo Metropolitan area in February 2018. Crab A shortage of king crab in December 2017 caused the price of snow crab to steeply increase. However, because of the high quality of Alaska king crab, wholesale remained strong. According to a survey by MIAC, expenditures on crab in December 2017 rose 16% compared with the same month the previous year. This increase may be due to crab being a popular end of the year purchase in Japan. The purchase quantity of crab also increased 18.6%. Alaska Pollock A recent survey by MIAC showed that spending on surimi products in 2017 was JPY 8,652 (US$80.85) per household, down 1% from the previous year. Expenditure on chikuwa rose 39% from the previous year. Kibun company released the results of a survey, stating that the number one surimi product selected by married women (aged 20s – 60s) is chikuwa, and second is kamaboko. In contrast, married men in their 20s-30s selected kamaboko as their favorite and chikuwa as their second favorite. Herring Roe Sales of kazunoko (herring roe) in Japan’s six major cities (Tokyo, Kyoto, Yokohama, Nagoya, Osaka, Kobe) in 2017 was 2,286 tons (up 1.9%), with a value of JPY 6,522,690,000 (US$60,959,719), down 2.1% year-on-year. The average price was JPY 2,853/kg (US$26.66/kg), down 4.0% year-on-year. However, the quantity of kazunoko (herring roe) sold in Osaka was reasonable at 555.8 tons (up 0.8%). The average price was JPY 3,835/kg (US$35.84/kg), down 2.0%. A decline in the Japanese gift culture has affected prices of packed fish-products in Japan. In 2017, the main product in the Kanto region (around Tokyo) was packed kazunoko (herring roe), ranging between JPY 1,600 – 1,700 per pack. ASMI International Activity Report Japan January – March 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 descriptions of Alaska seafood, sample recipes and nutrition benefits. Recently, not only has ASMI Japan focused 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. JJ30: Sogo Seibu Department Store Gift Season Promotion Date of Activity: November to December 2017 Summary of Activity: ASMI Japan placed an Alaska Seafood advertorial in Seibu Department Store's winter 2017/2018 Gift Catalogue to promote the range of Alaska seafood items that were listed in the catalogue as gift items. The department store produced and distributed 600,000 copies of the catalogue, which were delivered directly to consumers' homes. The advertorial featured celebrity chef Ryuta Kijima, whom ASMI Japan brought to Alaska for NHK public broadcasting as a member of the "Okazu Seinentai" group of celebrity chefs. He also gave live cooking demonstrations at several Seibu Department stores this year. The advertorial features an endorsement of Alaska Seafood from Chef Kijima, and promotes Alaska seafood as 100% natural, sustainable and an ideal ingredient for making Japanese food. Similar contents were featured on the Seibu Department Store website. In addition, the Alaska seafood products listed in the catalogue clearly stated the origin of Alaska. While a two-page advertorial in the catalogue costs $50,000, ASMI Japan used its relationship with the retail group to negotiate the two-page advertorial for $35,000. Results: The total sales value was JPY 23,040,000, of which key gift items held the following ratios: herring roe - 35.9%, sockeye salmon - 25.1%, snow crab – 14.3%, black cod - 7.8%, Alaska pollock roe - 6.3% ASMI International Activity Report Japan January – March 2018 p. 3 JJ34: Media Tie-Up with Ryori Tsushin Date of Activity: December 2017 to February 2018 Summary of Activity: ASMI Japan conducted a media tie-up with influential culinary magazine Ryori Tsushin to introduce recipes made with Alaska surimi products, collaborating with very popular cooking specialist Tomo Kurihara. The Cuisine Press website gets approximately 250,000 page views per month. In February 2018, ASMI Japan conducted a meetup event at Tomo Kurihara's restaurant Sawagi, where readers/influencers had the opportunity to actually taste Tomo's tapas recipes using Alaska surimi products, as featured in Ryori Tsushin Magazine. Information on the meetup event was shared on The Cuisine Press and also on social media platforms. Results: - Two pages of Alaska surimi products in Ryori Tsushin Magazine (December 2017 issue) - The media tie-up pages were also published on the Ryori Tsushin website, The Cuisine Press, and also on their social media platforms. - Meetup event (20 people) ASMI International Activity Report Japan January – March 2018 p. 4 ASMI International Activity Report Japan January – March 2018 p. 5 ASMI International Activity Report Japan January – March 2018 p. 6 JJ52: Media (print & online) tie-up with Wine What?! Magazine Date of Activity: March 2018 Summary of Activity: ASMI Japan conducted a media tie-up with Wine What?! Magazine, which targets men and women in their 30s and 40s. This magazine focuses on gourmet food and wine, and has a print circulation of 40,000, and 35,000 page views (PVs) per month for its website. The feature consisted of six pages in total. General Alaska seafood information, as well as the Alaska seafood experience, was featured across two pages, and recipes using Alaska seafood, i.e., sockeye salmon, Alaska pollock roe, and herring roe, were created by food coordinator Keita. The advertorial pages in Wine What?! informed readers about Alaska seafood in an attractive, appealing way. ASMI Japan also coordinated an Alaska seafood and wine tasting event on February 17, 2018 in Sapporo, Hokkaido, inviting approximately 100 Wine What?! readers. A report of the event was also included in the magazine and website. Results: The ad value was $37,500 for five pages in the print magazine, with a monthly magazine circulation of 40,000, online: 35,000 Page views/monthly (20,000 unique users) Publish date: March 5, 2018 (March issue). ASMI International Activity Report Japan January – March 2018 p. 7 ASMI International Activity Report Japan January – March 2018 p. 8 JJ53: Media Tie-up with Meets Regional Magazine Date of Activity: March 2018 Summary of Activity: ASMI Japan proposed a media tie-up with Meets Regional, a magazine that targets men and women in their late 20s and 30s and features current trends in the Kansai area, i.e., Osaka, Hyogo, Kyoto in Japan. This magazine focuses on fashion, food, drink and local information, and has a circulation of 150,000. The feature consisted of two pages in total. One page included general Alaska seafood information and information on Alaska seafood species, including sujiko (sockeye salmon roe), herring roe and Alaska pollock roe. The second page featured premium seafood retail shop Uoan's original products/recipes using sockeye salmon roe, herring roe and Alaska pollock roe. The advertorial pages in Meets Regional educated readers about Alaska Seafood in an attractive, appealing way. Results: The ad value was two pages for $20,000 with a monthly print circulation of 150,000 monthly, published on March 1, 2018 (March issue). ASMI International Activity Report Japan January – March 2018 p. 9 Current Quarter Results: • JJ30: Sogo Seibu Department Store Gift Season Promotion; Nov to Dec 2017; 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 Cumulative Fiscal Year Results: • JJ01: Collaboration with Costco; Aug 2017 - Feb 2018; 5,544 bags of Alaska pollock surimi crab legs sold August- mid-September, total value of US$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.
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