Market Demand Assessment For Haa Aaní Oysters
Confidential
Prepared for: Sealaska Haa Aaní
Prepared by:
Juneau • Anchorage
May 2011 Table of Contents
Key Findings ...... 1 Summary ...... 6 Introduction and Methodology ...... 8 Methodology ...... 8 Measures of Oyster Production and Conversion Factors ...... 9 Overview of International and Domestic Oyster Production and Markets ...... 10 Oyster Markets ...... 10 Potential Markets for Haa Aaní Oysters ...... 22 Alaska Markets ...... 22 Lower 48 Wholesale Market ...... 26 Lower 48 Retail Market ...... 29 International Markets ...... 31 Transportation, Logistics, and Quality ...... 32 Shipping ...... 32 Logistical Considerations ...... 33 Oyster Quality ...... 34 Organizational Considerations ...... 36 Appendices ...... 37 Appendix A List of Contacts ...... 38 Wholesalers/Distributors ...... 38 Seafood Restaurants and Oyster Bars ...... 42 Retailers ...... 47 Anchorage Wholesalers ...... 48 Icy Strait Point ...... 48 Small Ships ...... 48 Shipping and Logistics ...... 49 General Information ...... 49 Appendix B: Selected Menus ...... 50
Key Findings
Haa Aaní LLC, a subsidiary of Sealaska Corporation, and Yak-tat Kwaan Inc. are supporting the development of three oyster farms in Yakutat as part of a rural regional economic development initiative. Haa Aaní’s three farms are on track to produce 250,000 marketable oysters by year-end 2011 and an additional 500,000 oysters by the end of next year. Within three to five years, Haa Aaní production volume could reach 2 million oysters per year. Haa Aaní oysters will be a high- quality floating tray cultured oyster intended for the high-value half-shell market.
Maximizing the market value of this very substantial volume of oysters will require a well- defined plan with expertly executed marketing strategies. The purpose of this study is to provide the market information necessary to develop a sound marketing plan.
McDowell Group’s research for this project, which included interviews with oyster distributors, restaurateurs, and retailers from across the country, has confirmed that the prevailing image of pristine Alaska water, coupled with our state’s unique “wild” mystique, sets the stage for a potentially large market for high-quality Alaska oysters. However, efficient distribution and competitive pricing will be significant challenges for Haa Aaní efforts to distribute large volumes of oysters profitably.
Following are key findings from the study.
International and Domestic Oyster Production and Markets
• U.S. domestic oyster production has averaged 217.5 million pounds, live weight, per year since 2000. The top export markets for U.S. oyster exports in 2010 were Canada, Hong Kong, Taiwan, Singapore, France, and Italy.
• Pacific Coast landings totaled 73 million pounds, live weight, in 2009. Production is centered in Washington. Sales in the Pacific region totaled $72.8 million in 2009. British Columbia production
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 1 totaled another 11.9 million pounds, with a landed value of $6.2 million. Alaska production accounted for .03 percent of Pacific Coast landings.
• Oyster exports through U.S. Customs in Seattle in 2010 totaled 5.5 million pounds and were valued at $14.8 million. Oyster exports through Seattle were destined for Hong Kong (35 percent), Canada (34 percent), and Taiwan (23 percent).
• Imports of British Columbia oysters to U.S. Pacific Coast states totaled $5.4 million in 2010. Along the Pacific Coast, California imports the largest value of B.C. oysters, followed by Washington.
• Other top international destinations for British Columbia oysters were Hong Kong ($4.8 million in exports in 2010) and Singapore ($1.3 million in exports in 2010). These countries were also the top export destinations for oysters from other Canadian provinces.
Alaska Oyster Production
• A total of 27 farms in Alaska (15 in Southcentral and 12 in Southeast) harvested 764,422 oysters in 2010 with a total farm gate value of $384,500, based on data self-reported to ADF&G. Alaska harvest is down from the 2005 peak of 1.3 million oysters with a total farm gate value of $566,000.
• The average price (farm gate value) for Alaska oysters has risen from $3.98 per dozen in 1990 to $6.04 in 2010. The price per oyster in 1990 averaged $0.33, while the average oyster price in 2010 was $0.50 per oyster. This price increase is generally on par with inflation over the 20-year period.
• Roughly half of the statewide harvest occurs in Southeast. In 2010 423,288 oysters were harvested in the region with a farm gate value of $166,000. This equates to $4.71 per dozen. Over the past 20 years Southeast’s oyster harvest peaked in 1996, at 624,000 oysters.
• Southcentral growers have increased the average value of the region’s oyster harvest over the last five years to $7.69 per dozen. This may be the result of lower shipping costs and increased direct-to-the- public sales via the Internet. Prices listed on the Kachemak Shellfish Growers Cooperative website range from about $16 to $19 per dozen (plus shipping). It is unknown what volume of oysters are sold at these prices.
• Most oyster farms in Southeast Alaska are small in scale. The larger oyster producers in Southeast include Pearl of Alaska (estimated production of 13,000 to 16,000 dozen in 2010 with plans to increase production to about 40,000 to 60,000 dozen by 2012 or 2013), Canoe Lagoon (about 10,000 dozen per year), and Blue Starr Alaska Oyster Company (about 3,000 to 5,000 dozen per year).
• Alaska oyster production will increase dramatically in the next few years. Haa Aaní production alone will nearly double total statewide oyster production within the next year or two. Pearl of Alaska and several oyster farms on Prince of Wales Island will also be ramping up production.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 2 Market Structure and Characteristics
Oysters can change hands several times before ending up on the plate of the consumer. Some growers sell directly to restaurants or retailers, while others may rely almost exclusively on wholesalers/distributors. Many growers do both; carefully developing relationships with select high-end buyers while also selling larger volumes of oysters to a wholesaler (who may then sell the oysters to yet another smaller local distributor). In any case, each approach has its advantages and disadvantages, as summarized below.
WHOLESALE MARKETS
• Wholesale markets are appealing because of the potential to sell very large volumes of oysters, which can reduce the unit cost of marketing, harvesting, testing, packaging, handling, and shipping. However, growers must be willing to settle for lower prices, perhaps substantially less than direct sales to oyster bars or other restaurants.
• Oysters often go through two wholesale distributors: a large specialized shellfish distributor and another smaller, less-specialized local distributor.
• Six large-scale and several mid-sized oyster distributors were interviewed for purposes of this study. Key points from these informative interviews are provided in the appendices, along with contact names and information. Contact information for oyster distributors in all 50 states can be purchased from Urner Barry, a commodity market reporting firm.
• Most high-volume distributors expressed interest in Alaska oysters but had different reactions regarding prices. Several large East Coast distributors indicated that in total they could potentially buy 600 to 800 dozen Alaska oysters per week, if the price was about $7.20 per dozen (FOB East Coast). Other wholesalers currently buy some oysters at prices over $8 per dozen FOB East Coast but that volume is significantly less. Two others were adamant that they’d be more interested if the price was $5.00 or less per dozen. Pacific Coast distributors have a steady supply of high-quality oysters from Puget Sound and British Columbia in the range of $5.00 to $7.00 (FOB Seattle).
• Three wholesalers in Anchorage have the potential to handle from 200 dozen to as much as 500 dozen oysters per week at an FOB Anchorage price of about $7.00 per dozen. These buyers are very familiar with oysters grown in Southeast Alaska and stated that demand exceeds supply, especially in winter. Nevertheless, selling in Anchorage or other wholesale markets will require competitiveness with prevailing prices.
• To preserve relationships with wholesalers, growers cannot also sell directly to the wholesaler’s customers. Long-term relationship building is critical in seafood market development. Many wholesalers have been doing business with the same Alaskan oyster growers for two decades.
• As with any new venture, there will be a product handling, logistics, and market development learning curve. High-end customers, those willing to pay over $7.00 per dozen for oysters will be demanding in terms of quality, consistency, and delivery reliability. It will be critical to work out the logistical kinks (perhaps with one or two smaller customers) before doing business with premium buyers such as K&B Foods or JP’s Shellfish.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 3 RESTAURANT MARKETS
• Owners and executive chefs from nine upscale restaurants located in New York, Chicago, San Francisco, Portland, Washington, D.C., and Seattle were interviewed to gauge interest in Alaska oysters and price sensitivity. Notes from those interviews are included in Appendix A. The appendix also contains contact information for over 100 upscale oyster bars and seafood restaurants (which feature raw oysters). Additionally, a selection of international restaurants is included as well.
• Alaska’s seafood mystique was noted by several executive chefs, particularly in New York. High-end raw bar managers/owners interviewed for this project all were very interested to discuss Alaska oysters. Interview summary notes and contact information for these restaurants are provided in the appendix.
• While one raw bar owner paid more than a $1.00 per oyster for some varieties, most chefs indicated they would be interested up to a price of about $0.80 to $0.85 per oyster ($10.20 per dozen including shipping). This price is a significant premium over the $7 to $8 maximum from wholesalers but carries hidden costs such as marketing effort and expense, extra handling, and higher freight rates.
• Although restaurants may pay a higher price, there is greater risk associated with transportation and other logistical mishaps associated with moving relatively small volumes of oysters. Farmers also face greater risk of non-payment from restaurants, where the business failure rate is high.
• The Grand Central Oyster Bar in New York and the AquaGrill Restaurant in New York indicated they already buy significant quantities of Alaska oysters and would be interested in buying from Haa Aaní. Each of these restaurants could potentially buy 60 to 100 dozen oysters per week.
• There may be a total potential of 375 to 425 dozen oysters per week from the restaurants interviewed. Logistics and quality control assurances should be carefully defined before approaching the larger premium customers.
RETAIL AND OTHER MARKETS
• Oyster sales in retail settings are a function of many factors: grocer’s niche, average incomes in neighborhoods served, regional preferences (propensity to buy oysters at retail or at raw bar), and proximity to oyster farms or distributors. Retail demand for oysters was reported to be greatest during the winter holidays.
• Selling to small, independent seafood stores presents many of the same obstacles as selling to restaurants. Often the volume involved may not justify the time and effort required to sell to that outlet.
• Selling to larger, chain grocery stores is another option. However, because other brands of oysters will be cheaper on the wholesale market Haa Aaní oysters may not be price competitive. In addition, the process of becoming a vendor is typically rigorous (for example, potential suppliers must submit applications). Nevertheless, the option of connecting with an “upscale” chain like Whole Foods or
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 4 Wegman’s is worth pursuing. These large chains have the potential to consistently absorb relatively large volumes of oysters and perhaps at a price slightly better than may be available to Haa Aaní on the wholesale market.
• Market demand in Juneau retail outlets appears to be about 30 dozen oysters a week, primarily at Alaskan and Proud and Super Bear. However, these retailers are currently served by Pearl of Alaska and Canoe Lagoon. In addition to demand in Juneau there is potential for sale of another 5 to 10 dozen oysters per week in the northern Southeast area including lodges in and near Juneau, Gustavus, Elfin Cove, and Hoonah. Icy Strait Point in particular has excellent potential for buying Haa Aaní oysters.
• The barriers to selling to larger cruise lines that call on Southeast ports are significant but not insurmountable, although pressure for low pricing would be great. There is a greater likelihood of selling to smaller cruise lines that call on Juneau.
• Oysters are very popular in Yakutat – a fly-fishing mecca for many affluent fishermen from April to August – where it might be possible to sell 75 dozen per week seasonally.
Transportation and Logistical Considerations
• Efficient, cost-effective, and reliable transportation of oysters to buyers is critical. Daily north-bound and south-bound Yakutat jet service is an advantage, but the cost of shipping oysters will nevertheless represent a significant constraint on the net price per dozen earned by Haa Aaní. Depending on the destination, current Alaska Airlines air cargo rates will add as much as $2.38 to $4.05 per dozen to the final cost of the product. This does not include the cost of packaging or transferring the oysters from the airport to the customer. Freight costs can represent one-third of the delivered cost of oysters in some markets.
Alaska Air Cargo Cost Per Dozen from Yakutat to Major Market Airports 30-159 160-324 325+ dozen dozen dozen Zone Destination (100# rate) (500# rate) (1,000# rate) 2 Anchorage/Fairbanks $2.38 $2.22 $2.05 3 Southeast Alaska $2.54 $2.41 $2.22 4 Portland/Seattle $2.61 $2.49 $2.33 6 California, Nevada, Arizona $3.35 $3.20 $3.01 Austin/Chicago/Dallas/Denver 7 $3.50 $3.38 $3.19 Houston/Minneapolis Atlanta/Boston/New York 8 $4.05 $3.91 $3.75 Washington DC/Miami Source: Alaska Air Seafood Express Air Cargo Note: Rates are per dozen based on an average of 2.7 pounds per dozen shipped in 50 pound boxes with six pounds of packaging, including the box. This results in about 16 to 17 dozen oysters per 50 pound box. Actual rates paid may vary from these estimates, depending on oyster size and weight of packing. Rates include $0.22/lb fuel and $0.04/lb security surcharge.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 5 • To facilitate handling, Haa Aaní will need to become a known-shipper with Alaska Airlines (or other carriers) and establish a certified screening facility with TSA. Becoming a TSA-approved certified shipper allows cargo check-in two hours before takeoff and has a lower security screening fee. In addition, as a certified shipper TSA will generally not open boxes for inspection.
Image and Branding
• According to distributors, restaurant managers, and chefs interviewed for this study, the image and mystique of Alaska seafood is an important sales tool. Managers and chefs expressed a high level of interest in the prospect of purchasing Alaskan oysters. Creating a brand image with themes that include “Alaska” will provide Haa Aaní with advantages in the marketplace. Other themes such as “grown in pristine Alaska water” and “Native Alaskan grown” will also be beneficial to establishing a unique brand identity. Haa Aaní oysters will be sold as Alaskan oysters so it may not be as necessary to have the word Alaska in the name. Specific brand names such as Snow Whites, Cannon Beach Shooters or perhaps an Alaska Native word or phrase could capitalize on the Alaska mystique in the marketplace. The name “Haa Aaní oysters” has potential.
• To distinguish its oysters in the restaurant market Haa Aaní will want to provide high-quality point of sale pieces such as brochures, posters, and table tents to end-users to reinforce its brand image. A quality online and social media presence will also be a valuable marketing tool.
Product Quality
Consistent production and delivery of a high-quality oyster – comparable to Kumamoto, Kusshi, and Penn Cove, as well as Alaskan oysters produced by Canoe Lagoon (Coffman Cove) and Pearl of Alaska (Kake) – are essential in building a market for Haa Aaní oysters. If Haa Aaní cannot achieve similar quality with respect to shell appearance, cup depth, texture, flavor, and consistency of size, expectations about price and potential markets must be adjusted accordingly.
Summary
Clearly there is room in the regional, lower 48, and international markets for large volumes of Haa Aaní oysters. As for most Alaska seafood, there is a mystique associated with clean water and pristine environment that provides an important advantage for Haa Aaní oysters. Contacts made during this study suggest there is potential for Haa Aaní to sell 1,000 to 1,800 dozen per week across a variety of markets, but of course that will depend on selling prices. Once Haa Aaní has established price thresholds needed to support operations, more definitive market outreach can be conducted and volume estimates refined.
Shipping costs will have a dramatic effect on the net price Haa Aaní receives for its oysters and Haa Aaní will need to be price-competitive to sell high volumes of oysters. With significant near-term production volume (and anticipated future increases), as well as competion from other growers over the next few years, Haa Aaní will need to consider at least some level of distribution through wholesalers (even though this will likely result in a lower price). The higher the volume Haa Aaní wishes to sell into the end-user market the greater the effort required for marketing and handling. With enough effort (and manpower) Haa Aaní may eventually be
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 6 able to sell all their production into the end-user market. However, at production levels of 1,200 to 3,200 dozen per week it could take significant time, marketing effort, and expense to reach those levels. Whichever mix of markets Haa Aaní chooses to pursue, substantial time will be required to establish relationships and gradually build sales.
Though it will be tempting to seek out the largest buyers immediately, we suggest Haa Aaní sell to a few smaller distributors and a handful of oyster bars/restaurants with modest volumes before attempting to sell large quantities for top dollar to the biggest distributors or the busiest oyster bars. It is difficult to recover from an early stumble with a major buyer. The exception would be the Anchorage market. Starting with modest volume in 2011 and supplying the three Anchorage wholesalers with product through the winter of 2011-2012 should help firmly establish Haa Aaní as a valuable partner for this significant market close to home. This will allow sales personnel and growers time to develop the skills necessary to produce and sell significantly higher volumes of oysters. Haa Aaní will want to ask wholesalers about their needs and what Haa Aaní can do to make the relationship work for both parties over the long-term.
Despite higher shipping costs, the Northeast could also be a fertile market for Haa Aaní oysters. Though Haa Aaní oysters will be somewhat more expensive than other West Coast oysters sold in Northeast markets, the Alaskan mystique and quality product should generate premium prices.
This report provides a wealth of market intelligence and contact information to support development of a Haa Aaní oyster marketing plan. In that planning effort Haa Aaní must decide which markets to pursue, what strategies to employ to tap each market, and the necessary investment in time and marketing. In any case, it will likely take some level of experimentation over the next couple years to fully understand which mix of markets will provide the most efficient and profitable returns.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 7 Introduction and Methodology
With Alaska’s clean water and marketable mystique there is great potential for increased oyster farming in the state. Haa Aaní LLC, a subsidiary of Sealaska Corporation, and Yak-tat Kwaan Inc. funded three oyster farms in Yakutat as part of a village-based economic development initiative. Haa Aaní and Yak-tat Kwaan embarked on this venture to support shareholder employment and lasting economic development in Yakutat, and perhaps other Southeast Alaska villages in the future.
Haa Aaní’s three farms are on track to produce 750,000 marketable oysters by the end of next year, including 250,000 oysters by year-end 2011. Haa Aaní oysters will be a high-quality product intended for the high- value half-shell market. With annual production of 750,000 oysters, Haa Aaní will need to sell, on average, 1,200 dozen oysters per week, year-round. Within three to five years, production volume is expected to be close to two million oysters per year, which will require sales averaging 3,200 dozen per week.
Haa Aaní Oyster Production Equivalents Equivalent in Avg. Dozens per Week Oyster Count Dozens Selling Year-Round 100,000 8,333 160 250,000 20,833 400 500,000 41,666 800 750,000 62,500 1,200 1,000,000 83,333 1,600 2,000,000 166,666 3,200
The following report is intended to assist Haa Aaní in identifying the best potential markets and buyers, and develop an understanding of the opportunities and obstacles in the oyster marketing business. The best markets will yield the highest return on oyster sales with the most efficient level of sales effort.
In addition to collecting a range of secondary data, the study team interviewed wholesalers, restaurants, retailers, and shippers, to gauge oyster demand and logistical needs.
Methodology
McDowell Group compiled harvest and farm gate value statistics from regional, state, federal, and international agencies. The study team performed interviews with 10 distributors, nine restaurant buyers/chefs, three Alaskan industry veterans, six grocery stores, one lodge owner, the Icy Strait Point food and beverage manager, and four shipping companies. These interviews provided valuable information about sales volumes, prices, market demand, shipping costs, and the current state of the Alaska oyster industry. A list of contacts, and notes from those interviewed, can be found in Appendix A.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 8 Measures of Oyster Production and Conversion Factors
In general, there is little consensus about standard units of volume in the oyster market. Buyers will talk in terms of cost per oyster, per dozen, per bag, per case, or per 100-count. Cases and bags typically refer to a certain poundage or count.
A live 3.0 to 3.25 inch Haa Aaní oyster is estimated to weigh between 3.2 to 4.0 ounces with a mid-point of about 3.6 ounces. A dozen live Haa Aaní oysters is estimated to weigh between 2.4 and 3.0 pounds with a mid-point of 2.7 pounds per dozen. Actual weights may vary depending on how long the oyster is allowed to grow and the time of year the shellfish is harvested. The meat weight of a Haa Aaní oyster is estimated to range from 0.9 to 1.4 ounces with a mid-point estimate of 1.2 ounces.
Estimated Haa Aaní Oyster Average Weights Est. Live Est. Live Est. Meat Oyster size Weight Weight Each Weight Dozen Extra small to small 2.7 # 3.6 oz 1.2 oz
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 9 Overview of International and Domestic Oyster Production and Markets
Oyster Markets
This chapter provides a broad overview of global, national, regional and local oyster markets. Most of the world’s oysters are sold in markets not competitive with the high-quality, half-shell market of greatest interest to Haa Aaní. However, it is useful to have a general “big-picture” understanding of the global market, as a first step toward understanding where opportunity is greatest for Haa Aaní, either for tapping existing competitive markets or in new, largely untapped markets.
Globally, oysters are sold live, shucked and raw fresh, shucked and raw frozen, cooked and canned, brined, smoked and canned in oil, dried, breaded and frozen, extracted for oyster sauce, and a range of other value- added products.
The highest value for the individual oyster is when sold fresh on the half-shell, the end product for nearly all of Alaska’s current oyster production. However, larger oyster growers, including growers in British Columbia, and Washington State also sell fresh shucked, cleaned, and packed oysters.
While Alaska producers might face significant transportation or other logistical barriers to accessing distance markets, the high-value oyster market is truly global. For example, B.C. oysters are sold in China, the world’s largest producer of oysters, other Pacific Rim nations, and in European markets as well. As oyster production in Southeast Alaska ramps up significantly over the next decade, growers will likely be required to incorporate a growing proportion of international sales into their customer base.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 10 International
World oyster aquaculture production totaled 9.5 billion pounds, live weight, in 2009 and was valued at $3.3 billion. The vast majority of oysters harvested globally are farmed, with wild harvests generally trending down as concerns over ecosystem health increase. Total global production of oysters peaked in 2007, then declined in 2008. Since 2008 production has returned to what has been and is expected to continue to be a long-term growth trend.
Annual World Oyster Production, 2000 to 2009 (Pounds) 12,000,000
10,000,000
8,000,000
6,000,000 Wild Cultured Production
4,000,000
2,000,000
0
Source: Food and Agriculture Organization of the United Nations
In 2009, China accounted for approximately 81 percent of total global production, with Japan (5 percent), Korea (6 percent), the United States (3 percent), and France (2 percent) also producing significant numbers of oysters. Top world markets for fresh, chilled and frozen oysters are Japan, the U.S., Italy, China, Spain, Belgium and France. The largest exporters of oysters are the Republic of Korea, France, China, the U.S., and Canada.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 11 United States
U.S. domestic oyster production has averaged 217.5 million pounds, live weight, per year since 2000. In 2009, U.S. domestic oyster landings totaled an estimated 217.3 million pounds. The estimated value of 2009 production was $136.5 million.
U.S. Commercial Landings of Oysters, 2000-2009
(live weight, thousand lbs.)
251,402 236,176 226,699 230,683 217,339 210,166 207,514 210,239 199,632 184,290
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: NOAA Fisheries: Office of Science & Technology
Exports of U.S. oysters have increased from 6 percent of U.S. commercial landings in 2000 to 24 percent in 2009, in terms of meat weight. U.S. exports in 2010 totaled 7.7 million pounds of all oyster products valued at $22.2 million. The top markets for U.S. oyster exports in 2010 were Canada, Hong Kong, Taiwan, Singapore, France, and Italy. U.S. exports include oyster seed and live, fresh, frozen, dried, salted or brined oysters. No exports of canned oysters were recorded by the National Marine Fisheries Service in 2009 or 2010.
Top U.S. Oyster Export Markets, 2010 % of Live/Fresh/Frozen/ Total Average Pounds Value Dried/Salted/Brine Export Price/Pound Value Canada 3,399,905 $10,342,888 47% $3.04 Hong Kong 1,997,408 4,983,998 22 2.50 Taiwan 1,296,054 1,693,945 8 1.31 Italy 90,716 1,234,287 6 13.61 Singapore 289,720 796,066 4 2.75 France 133,816 659,808 3 4.93 Source: National Marine Fisheries Service
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 12 Exports through U.S. Customs in Seattle, WA in 2010 totaled 5.5 million pounds and were valued at $14.8 million. Thirty-five percent by volume of oyster exports through Seattle were destined for Hong Kong, 34 percent for Canada, and 23 percent for Taiwan. Other countries receiving U.S. oyster exports through Seattle were China, Japan, Malaysia, and Singapore.
U.S. oyster imports have remained relatively steady since 2000, averaging 21.8 million pounds annually. Imports are comprised of canned oysters (12 million pounds in 2010, valued at over $30 million), live/fresh/frozen/dried/brine oysters (11.7 million pounds in 2010, valued at over $25 million) and oyster seed (1,600 pounds in 2010, valued at $4,500).
U.S. Top Oyster Imports, 2010 % of Product Average Pounds Value Import Value Price/Pound Live/Fresh/Frozen/Dried/Salted/Brine Canada 4.5 million $11 million 43% $2.44 South Korea 3.6 million $9.4 million 37% $2.61 Mexico 2.6 million $2.7 million 11% $1.04 Japan 620,000 $1.4 million 6% $2.26 Canned China 7.7 million $20 million 66% $2.60 South Korea 4.2 million $9.7 million 32% $2.31 Japan 27,000 $160,000 0.5% $5.93 Thailand 25,000 $51,000 0.2% $2.04 Source: National Marine Fisheries Service
Imports through U.S. Customs in Seattle arrived from Canada, China, and South Korea in 2010. Imports from China were all canned (176,000 pounds valued at $454,378). Imports from Canada and South Korea fell in the live/fresh/frozen/dried/salted/brine category. Imports through Seattle from Canada totaled 2.6 million pounds and were valued at $5.4 million. South Korean imports totaled 6,700 pounds and were valued at $24,000.
With imports and exports taken into consideration, the total U.S. supply of oysters has averaged 394.7 million pounds, live weight, since 2000. The 2009 U.S. supply of oysters was 358.7 million pounds.
U.S. REGIONAL PRODUCTION
The top three oyster producing regions in the United States are the Gulf of Mexico, Chesapeake Bay and the Pacific Coast. Atlantic and Gulf of Mexico production is dominated by the Eastern oyster, Crassostrea virginica. Pacific production consists primarily of Pacific oysters, Crassostrea gigas, which were introduced from Japan in the early 1900’s. Other oysters produced on the Pacific Coast include the European Flat (Ostrea edulis), Kumamoto (Crassostrea sikamea), and the native Olympia (Ostrea lurida).
According to National Marine Fisheries Service (NMFS) data, the Gulf of Mexico region reported approximately 138 million pounds, live weight, of oyster landings in 2009 (90 million of that in Louisiana) with $72.5 million in landings revenue. Regional oyster production and sales have declined significantly since
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 13 the Gulf oil spill. However this decline presents little opportunity for Alaska oysters producers as few Gulf oysters are destined for the high-end half shell market.
Atlantic production totaled 13.4 million pounds of oysters in 2009, with $24.0 million in landings revenue. Production is down in the Atlantic region, where landings in 2000 totaled 14 million pounds in Maryland alone.
Also according to Pacific Shellfish Growers Association, Pacific Coast (Alaska, Washington, Oregon and California) landings totaled 73 million pounds in 2009. Production is centered in Washington, where oyster production totaled 60 million pounds in 2009. Sales in the Pacific region totaled $72.8 million in 2009. Alaska is a very small contributor to total Pacific Coast production, accounting for 0.3 percent of production volume and 0.6 percent of production value. Oyster Production in Canada
The Canadian oyster industry is active on Prince Edward Island, in Nova Scotia, New Brunswick, and British Columbia. Eastern Canadian production of oysters in 2009 totaled 6.8 million pounds (live weight) and was valued at $9.25 million (USD). British Columbia production totaled 11.9 million pounds in 2009, with a landed value of $6.2 million (wholesale value of $13.3 million).
British Columbia Annual Oyster Production, 2001-2009 (thousand pounds, live weight)
17,957 18,104 17,278 17,661 16,314 16,497 15,873
12,465 12,125 11,905
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Statistics Canada
Total U.S. imports of Canadian oysters were $11 million (USD) in 2010. Imports from British Columbia were valued at $5.5 million. Total U.S. oyster exports to Canada totaled $10.3 million in 2010. U.S. exports to British Columbia accounted for $8.6 million of that total. Other top international destinations for British Columbia oysters in 2006-2010 were Hong Kong ($4.8 million in exports in 2010) and Singapore ($1.3 million in exports in 2010).
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 14 Imports of British Columbia oysters to U.S. Pacific Coast states totaled $4.5 million in 2010. Over the last ten years, imports reached a high of $6.5 million in 2006 and lows of $2 million in 2001 and 2002. Along the Pacific Coast, California imports the largest value of B.C. oysters, followed by Washington.
Imports of British Columbia Oysters to Pacific Coast States, 2001 – 2010
$7,000,000
$6,000,000
$5,000,000
$4,000,000 Oregon California $3,000,000 Washington
$2,000,000
$1,000,000
$0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Statistics Canada
U.S. Pacific Coast oyster exports to B.C. exceeded the value of imports from B.C. in 2010 (trade balance of - $3.9 million). Washington exported more oysters to B.C. than any other U.S. state, followed by Oregon. Washington exports to B.C. in 2010 were valued at $7.4 million, while Oregon exports totaled $1.1 million. No Alaskan exports or imports to Canada were recorded in 2009 or 2010.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 15 Alaska Oyster Production and Value
STATEWIDE PRODUCTION
The total number of Alaska shellfish (oyster, clam, and mussel) farms permitted by the Alaska Department of Fish and Game has increased in the past twenty years. The number of farms with production has remained relatively steady over the past ten years, especially in Southeast. Southcentral permitted shellfish farms with production increased from four in 1990 to 15 in 2010, with a high of 23 in 1998. Southeast permitted farms (oyster and clam) with production ranged between seven and twelve between 1990 and 2010.
Total Permitted Shellfish Farms with Production in Alaska, 1990-2010 35
30
25
20 Southcentral 15 Southeast
Number of Permits 10
5
0
Source: Alaska Department of Fish & Game
The Alaska Department of Fish and Game (ADF&G) tracks oyster production and sales in Alaska. Oyster farmers must submit annual reports that detail sales volume and farm gate value data. This data is self reported and unaudited. According to these numbers, in 1990, Alaskan oyster production totaled 224,283 oysters (18,690 dozen). In 2010, Alaskan farms produced 764,422 oysters (63,700 dozen). Oyster production reached a twenty-year high in 2005, when 1,334,934 oysters were produced. The vast majority of oysters produced in Alaska are Pacific oysters. Alaska Annual Oyster Production 1990-2010 (Dozens of Oysters) 120,000
100,000
80,000
60,000
40,000
20,000
0
Source: Alaska Department of Fish & Game
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 16 It is unclear exactly what led to the 2005 peak and subsequent decline. Potential reasons mentioned by those interviewed for this project included 1) an increase in permits prior to 2005 resulted in increased production that year. 2) the difficultly in making a profit from a small farm may have resulted in some growers reducing production or leaving the industry, 3) the availability of suitable quality spat may have been an issue in some years.
STATEWIDE HARVEST VALUE
The ten Alaska shellfish farms producing in 1990 generated sales of $73,537. In 2010, sales from the 27 shellfish farms with production totaled $384,500 in oyster production. As with production, oyster sales reached a high in 2005, with $565,964 in sales reported.
Alaska Annual Oyster Sales,1990-2009 (Farm Gate Value)
Southeast Sales Southcentral Sales
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Source: Alaska Department of Fish & Game
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 17 SOUTHEAST ALASKA PRODUCTION
According to ADF&G records, of the 41 permitted shellfish farms in Southeast, 12 produced oysters and/or clams in 2010. Twenty-two shellfish farms in the region are permitted specifically for oysters (whether they produced or not) in 2011. One shellfish nursery, Naukati Bay Shellfish Nursery, was also permitted in Southeast Alaska in 2011.
Number of permitted Southeast Alaska shellfish farms, 1990-2010 45 Permitted Farms Farms with Production 40
35
30
25
20
15
10
5
0
Source: Alaska Department of Fish & Game
Southeast oyster farms produced 423,288 oysters (35,274 dozen) in 2010. Production reached a high of 624,091 oysters in 1996 before dipping to 247,289 in 2001. Production increased from 2001 to 2005 before falling again between 2005 and 2009.
Southeast Alaska Oyster Production, 1990-2010 60,000
50,000
40,000
30,000
(dozens) Oysters 20,000
10,000
0
Source: Alaska Department of Fish & Game
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 18 AVERAGE PRICE PER DOZEN
The average statewide price (farm gate value) for Alaska oysters has risen from $3.98/dozen in 1990 to $6.04/dozen in 2010. The price per oyster in 1990 averaged $0.33, while the average oyster price in 2010 was $0.50 per oyster. The increase in price per oyster was roughly equal to inflation over the 20-year period.
Average Statewide Price Per Dozen for Alaska Oysters, 1990-2010
$8.00
$7.00
$6.00
$5.00
$4.00
Price Per Per Dozen Price $3.00
$2.00
$1.00
$0.00
Source: Alaska Department of Fish & Game, calculated by McDowell Group.
For the six-year period between 2005 and 2010, Southcentral averaged 53 percent of the statewide production and 59 percent of statewide value. The average reported price per dozen for Southcentral oysters for the period is $6.67. Southeast averaged 48 percent of statewide production for the same period and 41 percent of value. The average reported price per dozen for Southeast oysters for the period is $5.03.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 19 The greater value obtained for Southcentral oysters is likely related to higher shipping costs in Southeast. Additionally, Kachemak Shellfish Growers Cooperative has been able to achieve some level of sales directly to the public via its website with prices ranging from $16 to nearly $20 per dozen. It is unknown what volume of sales occurs at these prices.1 It is recommended that Haa Aaní further investigate the potential for direct to the public sales.
Average Price Per Dozen for Alaska Oysters by Region, 2005-2010 Southcentral Southeast Production Value Avg. Price Production Value Avg. Price 2005 60% 59% $5.01 40% 41% $5.20 2006 56 60 5.19 44 40 4.45 2007 52 56 6.04 48 44 5.12 2008 44 56 8.36 56 44 5.20 2009 56 64 7.73 44 36 5.48 2010 45 57 7.69 55 43 4.71 Six year avg. 52% 59% $6.67 48% 41% $5.03 Source: Alaska Department of Fish & Game
SOUTHEAST GROWERS
Of the farms with production in Southeast, most are small-scale farms. Just a few permit holders produce the majority of oysters. The larger producers in Southeast include Canoe Lagoon, Pearl of Alaska, and Blue Starr Alaska Oyster Company.
Canoe Lagoon Oyster Company, located in Coffman Cove on Prince of Wales Island, is one of the oldest oyster producers in the state with production spanning more than two decades. The company reportedly produces approximately 10,000 dozen oysters per year. American Mussel Harvesters (a Rhode Island-based farmer and distributor) promotes Canoe Lagoon oysters and describes them on their website as follows:
Canoe Lagoon’s are a medium to large choice oyster that are farm raised in a remote cove of Blaschke Island, Alaska. On this farm the finished oysters boast a hard/durable shell due to the ultra-cold waters of the region and short yearly growth period. The high algae counts in the water at the farm give the oyster a healthy starting point and vibrant coloration. The 3 ½ to 4 inch shells are full of meat and have a distinct fruity aroma to them. Most people taste the distinctive watermelon finish to the oyster that is very noticeable in the Alaskan oysters. A nearly 5,000 mile journey from Blaschke Island, Alaska to your plate.
Pearl of Alaska oysters are bottom-culture oysters grown in Stedman Cove and Big John Bay on the south side of Frederick Sound, twelve miles south of Kake. Pearl of Alaska has been producing approximately 8,000 to 10,000 dozen oysters per year. The company is poised to produce 13,000 to 16,000 dozen in 2011 and 40,000 to 60,000 dozen in 2012. The oysters are harvested at low tides and must be cleaned of mud and algae.
1 http://www.alaskaoyster.com/cm/Home/tabid/36/Default.aspx
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 20 Blue Starr Alaskan Oyster company produces approximately 3,000 to 5,000 dozen oysters per year from Tokeen Cove off the west coast of Prince of Wales Island. Blue Starr is a member of the recently formed Alaska Oyster Cooperative (AOC) based in Naukati. AOC is the second oyster cooperative in the state of Alaska. Naukati has also developed a “weekend warrior” program designed to increase the number of growers in the area.
Overall, Southeast oyster production is expected to increase significantly in the next few years, in addition to Haa Aaní and Pearl of Alaska production, growers on Prince of Wales Island are also likely to increase their production.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 21 Potential Markets for Haa Aaní Oysters
Data presented in the preceding chapter indicates that the potential market for Southeast Alaska-grown oysters is sizeable. Identifying which specific markets – in terms of geography and types of buyers – offer the greatest opportunity for Haa Aaní oysters is the real challenge. This chapter describes options for selling oysters, including selling in bulk to wholesalers, or selling in smaller batches directly to retailers or restaurants.
Some oyster growers work exclusively with wholesalers, some exclusively with retailers/restaurants, and others do both. It is important to understand the advantages and disadvantages of the various oyster distribution options.
Alaska Markets
A common-sense recommendation is to tap the closest markets first, where freight costs are lower and the possibility for handling and transportation mishaps are lowest.
Anchorage
The Anchorage market offers significant potential for Haa Aaní oysters. According to wholesalers and restaurants there is greater demand than supply for high-quality Alaska grown oysters, with supplies significantly reduced in the winter when many growers find it difficult to harvest because of darkness and poor weather conditions. The Anchorage market is also well served by Alaska Airlines from Yakutat and has the lowest cargo rates of any major market destination. Potential wholesale demand could range from 200 dozen to as much as 500 dozen oysters per week at an FOB Anchorage price of about $7.00 per dozen. It is possible to get a higher price per dozen through direct sales to restaurants but the overall volume in that market is much smaller as many restaurants buy through one of Anchorage’s three major wholesalers.
WHOLESALE MARKET
Favco Alaska Seafood Processing and Distribution
Favco distributes a significant volume of oysters including product from Southeast. They have purchased from Pearl of Alaska, Canoe Lagoon, and Blue Starr. They typically purchase 300 dozen per week in the summer and about 150 dozen the remainder of the year. Most of the oysters they buy are about 3.5 inches in length.
About 70 percent of Favco sales are to restaurants with the remainder to retailers. They pay an average of about $5.50 per dozen for oysters from Southeast. The oysters they get from Prince of Wales Island (POW) are shipped to Ketchikan at the grower’s expense then Favco acts as the known shipper and pays the freight from Ketchikan to Anchorage. This likely adds about $2.00 per dozen resulting in an FOB Anchorage cost to Favco of about $7.50 per dozen. If growers on the west coast of POW are shipping product directly to Ketchikan by float plane, freight rates would range from about $0.79 to $0.99 per pound depending on the farm location. This is the equivalent of $2.13 to $2.67 per dozen, which seems untenable at a sale price of about $5.50 per dozen. It is more likely that they are boating product to Naukati and then via road and Inter-
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 22 Island ferry to Ketchikan. Even in that scenario the growers are likely netting about $5 per dozen or less per dozen.
Favco also buys from Pearl of Alaska in Kake. In the past, Pearl of Alaska has chartered flights once per week and ships oysters directly to the Anchorage market.
Favco expressed interest in Haa Aaní oysters in the range of 150-200 dozen oysters per week if they can get them FOB Anchorage for about $7.00 per dozen (note: based on the calculations above they may be paying closer to $7.50 FOB Anchorage). They are especially interested in acquiring more Alaska oysters in the winter.
10th & M Seafoods
10th & M has been buying oysters from Southeast for 20 years and are very familiar with the product. They buy from Canoe Lagoon, Pearl of Alaska, and Blue Starr. The buyer prefers three to four inch oysters. While declining to provide specific volume information the buyer said they buy 30 to 200 dozen oysters per day which is the equivalent of 360 to 1,400 dozen a week. Volume is higher in the summer. They cannot get enough Alaska oysters, especially in the winter. The buyer said that everyone wants to sell oysters in the summer but they are often not available in the winter. The buyer stated, “If the grower can support me year- round they will have an advantage.”
10th & M is paying from about $5.90 to $7.25 per dozen for Southeast oysters FOB Anchorage. They have different arrangements with different farms and mentioned relationships and length of the relationship as a factor in price. They sell to a mix of retail (including through two stores of their own in Anchorage) and to restaurants. The Kachemak Shellfish Growers Cooperative offered to sell them oysters at prices between $16 and $18 dozen. The buyer stated that they had no interest at that price.
He expressed interest in a high-quality year-round Yakutat oyster in the range of $7 to $8 FOB Anchorage. He said they typically buy 200 dozen per week from the farms they do business with now and he would be interested in that level of Haa Aaní oysters.
Sagaya Wholesale
Sagaya Wholesale supplies two of their own retail outlets as well as other retailers and restaurants in Anchorage. Sagaya has been selling oysters from Alaska for 15 years. The buyer said the biggest problem they have is acquiring a consistent supply. He said there have consistently been periods where there is no Alaska product available. He mentioned that production in Cordova is expected to increase this year.
Sagaya currently purchases an average of about 250-350 dozen oysters per week and would not disclose what they currently pay for product.
Juneau
Super Bear reported selling 20 dozen oysters a week in the off-season and slightly more in the summer. They typically buy Pearl of Alaska and Canoe Lagoon oysters for between $7.20 and $8.40 per dozen (FOB Juneau) with a selling price of $10.99. During times when Pearl Oysters and Canoe Lagoon are not available they will stock Puget Sound oysters. They were selling Puget Sound oysters for $8.99 per dozen in April 2011.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 23 Alaskan and Proud sells 10 dozen oysters a week during the summer and a little more during the holidays. Carr’s/Safeway does not carry live oysters and Fred Meyer’s seafood department is restricted from buying product not associated with their current vendor, but they only sell one or two dozen a week.
The study team interviewed the person primarily responsible for yacht provisioning in Juneau to better understand demand from this market. According to the representative, they occasionally get requests for fresh oysters and believe that an Alaskan product would be popular. Price is not much of a concern but the product has to be high-quality. Current demand is estimated at 15 to 20 dozen per season. The provisioner stated that with a consistent supply of quality product, volume could be much higher. They would be happy to push fresh local oysters if they had a brochure or other sales materials.
Haa Aaní could potentially sell 30 to 40 dozen oysters per week in Juneau but will compete with Pearl of Alaska and Canoe Lagoon. The ultimate potential for oyster sales in Juneau is higher, but lacking a local oyster bar, for example, the near-term potential is somewhat limited.
Northern Southeast
In addition to demand in Juneau, there is potential for at least another 5 to 10 dozen oysters per week in the Northern Southeast area including lodges in and near Juneau, Gustavus, Elfin Cove, and Hoonah.
Icy Strait Point (ISP) in Hoonah is a good potential market. The ISP food and beverage director has extensive experience with Alaskan oysters and is very interested in providing his guests with an Alaska Native grown oyster. ISP will host more than 60 large ships with capacity of more than 125,000 passengers in 2011. With marketing support from Haa Aaní, ISP could become a significant seasonal market (perhaps even in the range of 25 to 50 dozen per week from May to September). Hoonah also has frequent Alaska Marine Highway service that may allow for less expensive shipping from Juneau to Hoonah. Prices in the range of $7 to $8 per dozen (FOB Hoonah) for a high quality product were mentioned as likely acceptable.
Cruise Lines
LARGE SHIPS
There is some potential for selling oysters to large cruise lines. However, previous McDowell Group interviews with executives of major cruise lines that visit Juneau revealed that price and logistical concerns would be significant hurdles for Haa Aaní.
Price
High-quality Alaskan oysters, like other Alaskan seafood, may be attractive to cruise lines but price is a significant factor. Cruise lines buy large volumes of food and expect to receive very low prices. When discussing the potential purchase of produce grown in Southeast, one cruise executive stated “We expect businesses that work with us to except tight margins. In the range of three to percent instead of the typical 25-30 percent.” This standard likely applies to seafood purchases. The cruise lines can buy oysters in Seattle or Vancouver for $5 per dozen or less with no significant freight costs. It seems unlikely that major cruise lines would be willing to pay $7 to $8 per dozen FOB Juneau.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 24 Logistics
Logistics are potentially a greater issue than price. Executives have stated that there are extra costs and inefficiencies related to taking on supplies in Juneau. Cruise ships are generally in port for six to eight hours and deliveries must be made during that time frame. All deliveries need to clear a security check and the product must be inspected and checked-in by ship personnel. This process can require more than an hour.
The greatest barrier for Haa Aaní may be related to dependable delivery. Cruise lines have no tolerance for missed shipments. All batches of oysters must be tested for PSP before being sold. There are times, particularly in the summer, when batches of oysters do not pass the test and cannot be sold. The result would be an unfilled order. The potential for missed delivers is likely unacceptable to the cruise lines. Weather delays could also be a factor in shipping oysters to Juneau within the tight cruise ship delivery schedule.
However, purchasing decisions can be based on political considerations and once Haa Aaní has established reliable production and distribution systems an effort to contact large cruise lines may yield results.
SMALL SHIPS
Smaller cruise ships may offer a greater potential for Haa Aaní oysters, though the market is small. They have more flexibility in procurement and like to offer their clientele local products when possible. These smaller ships are likely to be somewhat less price sensitive, but also have the opportunity to procure oysters from other suppliers in Puget Sound and in southern Southeast Alaska.
There will be five small cruise ships making ports of call in Juneau in 2011. This includes the Silver Shadow (382 passengers), Bremen (164 passengers), and the Sea Bird and Sea Lion with 60 passengers each. These ships will make a total of 36 port calls in Juneau; with passenger capacity of about 7,000. The Bremen and Silver Shadow also stop in Ketchikan and could easily pick up oysters there (likely cheaper than Haa Aaní oysters shipped to Juneau). The Sea Lion and Sea Bird turn around in Petersburg and may be able to acquire Pearl of Alaska oysters there. Additionally, Alaskan Dream Cruises (Allen Marine) will begin operating the 42 passenger Alaskan Dream and the 78 passenger Admiralty Dream on four to eight day itineraries based out of Sitka in 2011. All itineraries include stops in Juneau.
The 2011 itinerary for the German cruise line Hapag-Lloyd has one itinerary where the Bremen is scheduled to “cruise in Yakutat Bay”. It is unclear whether the ship will actually dock in Yakutat but there is a possibility that this type of vessel may be interested in adding oysters to its menu and perhaps adding a cultural component to the visit which could involve interaction with local oyster growers.
American Cruise lines will be adding a new small ship to the Alaska market in 2012 that may provide an opportunity for Haa Aaní. The 100-passenger ship (50 berths) will have a seven-day itinerary based out of Juneau.
Yakutat
Haa Aaní will be able to sell some oysters in its home market of Yakutat. According to one knowledgeable source, there could be demand for 75 dozen a week during the summer. Potential customers include direct
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 25 sales to locals and visitors, the Glacier Bear Lodge, Yakutat Lodge, and the Glass Door Bar. Without the added burden of air freight charges Haa Aaní may be able to receive a relatively high price from local sales.
Lower 48 Wholesale Market
Representatives of the following large shellfish wholesalers were interviewed for this study. Notes from those interviews are included in Appendix A:
• Marinelli Shellfish (San Francisco, CA) • Penn Cove Shellfish (Coupeville, WA) • Steve & Mike Shellfish Company (San Francisco, CA) • K&B Foods (New York, NY) • American Mussel Harvesters (N. Kingston, Rhode Island) • JP’s Shellfish (Boston, MA)
• Alaska Feast (Bronx, NY) • Foley Fish (Boston, MA) • Alber Seafoods (San Francisco, CA)
• Pier 45 Seafood (San Francisco, CA)
Some oysters go through two levels of distribution with a large wholesaler (often times specialized) buying significant quantities directly from the farmers and then selling to smaller local distributors who in turn sell to restaurants and retail customers. Outlets such as oyster bars that purchase a high volume of oysters are more likely to work with the first tier wholesalers (or directly with growers) whereas restaurants that purchase smaller quantities may be more likely to buy oysters from a local distributor.
Wholesalers can serve customers across the country and, while the majority of their business comes from restaurants and small retailers close to their location, it is not uncommon for a large oyster distributor in San Francisco to send product to more distant locations such as Las Vegas, Houston and Chicago. Most of the large oyster wholesalers either carry or have access to roughly the same oyster varieties.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 26 Wholesale Pricing Potential
First tier distributors offer varying opinions on price points for high-quality Alaska oysters. Following are excerpts from some of the interviews.
• Marinelli Shellfish – has purchased Alaska oysters before but quality was very inconsistent. They had problems with grading, shelf-life, and packaging. Pays as much as $7 to $8 per dozen for oysters, but says most of his customers come looking for something under $5 per dozen.
• Penn Cove Shellfish – “$6 per dozen (plus freight) would be fairly competitive with tray raised oysters from B.C.; those would wholesale in the $8 per dozen range. Some of the B.C. tray raised oysters go for $6.50 per dozen.”
• Steve & Mike Shellfish Company – “I get all the B.C. oysters I want delivered to my door for $4.50 per dozen, and that’s on the high end.” “We’re one of the top four or five largest oyster distributors in the U.S. – 60 percent of my business comes from areas outside the West Coast.” Volume is about 1,000 bags a week. Interested in Alaska oysters but only for a low price
• JP’s Shellfish – they regularly bought 250 to 330 dozen Pearl of Alaska oysters per week for $7.20 (freight included) until recently when Pearl started to sell directly to restaurants. They buy 10,000 oysters a week from the Pacific Northwest (not including Alaska). They really liked the Pearl of Alaska oysters.
• K&B Foods – They have purchased Alaska oysters in the past, and thought highly of them. Not much supply of Alaskan product right now and what is available is expensive – had one producer offer him product for $1.00 per oyster last year. That price is too high, but he’d be interested for $0.60 per oyster or $7.20 per dozen (including freight). Estimated he could buy 2,000 to 3,000 per week at those prices, if the quality and branding was good.
• American Mussel Harvesters – sells 200 dozen Canoe Lagoon oysters per week. Would not disclose prices of certain varieties but said they pay $4 to $9 per dozen (including freight) for their product, and “Alaska would be closer to the high-end.” Quality and consistency is important. They would be interested in buying more Alaska oysters.
Wholesale Market Summary
There seems to be demand for Alaskan oysters even at premium prices, but there is still a high level of price sensitivity. Depending on the market, freight from Yakutat can add $2.00 to $4.00 per dozen depending on destination and volume. In order for Haa Aaní to be price competitive in the $7.00 to $8.00 per dozen delivered range, they would need to price their product at about $5.00 to $5.50 per dozen to sell significant volumes. Freight costs present challenges for Alaska farms in the West Coast wholesale market, relative to West Coast farms, which have highway access to those same wholesale markets. It may actually be easier for Alaska farmers to compete with other West Coast producers in East Coast wholesale markets, where all producers face high cross-country freight costs. The allure of Alaska seafood may result in selling product at higher prices than other West Coast competitors, offsetting Alaska’s higher freight cost disadvantage relative to Lower 48 West Coast farms.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 27 Freight into the Atlanta, Boston, New York, DC, and Miami markets currently ranges from $3.75 to $4.00 per dozen. Haa Aaní may be able to sell some oysters to wholesalers at prices above $8.00 delivered but overall volume would likely be significantly smaller.
Lower 48 Restaurant Market
There are generally two kinds of food service establishments to consider; buyers that specialize in oysters such as oyster bars, and restaurants that carry multiple varieties and may use oysters in a variety of menu items. Other operations may treat oyster sales more causally, offering only one type of oyster on the half shell as an appetizer or offering oysters only occasionally as a special.
Oyster bar operators from New York, Boston, Seattle, Portland, Washington DC, San Francisco, and Chicago were interviewed to gather opinions about marketability and value of Alaska oysters.
Conversations with oyster bar executive chefs suggest that the allure of an Alaska oyster is strong and the product is very marketable. A few establishments commented on the high price of Alaska oysters, but most noted that the premium was reasonable considering the shipping costs involved. Almost without exception, executive chefs were happy to talk at length about Alaska oyster market appeal and pricing. The cultural aspect generally piqued their interest. There are perhaps a few dozen upscale oyster bars across the U.S. that have built clientele around their raw bar and attract significant business on a regular basis. Most raw bars carry three to five varieties that are part of a more expansive seafood menu. Volume, pricing, and selection vary widely by establishment.
Some restaurants offer a wide variety of oysters, like Elliott’s Oyster House in Seattle, which lists nearly 40 varieties of oysters on its menu. Elliott’s reportedly sells about 600 dozen oysters per week.
The highest volume oyster bar interviewed was Grand Central Oyster Bar, which features competitive prices and a wide selection. Located in Grand Central Station, this oyster bar sees more foot traffic than any other oyster bar in the world. Sandy, Grand Central’s oyster buyer, indicated he could move 100 dozen Alaska oysters per week if the price was right (under $0.85 per oyster). Ethan from EaT: An Oyster Bar, one of Portland’s busiest oyster bars, carries eight to 12 varieties and sells 200 to 300 dozen oysters per week (total). Black Salt, an upscale DC oyster bar, carries six to 12 varieties and averages sales of 17 dozen per variety, per week. Eddie Sweeney from Catch 35 in Chicago buys for two locations and moves 170 dozen per week. The Anchor Oyster Bar in San Francisco, sells a couple thousand oysters a week and pays as much as $12.60 per dozen for its oysters – some of which are FedEx’d from the East Coast.
OYSTER BAR/RESTAURANT PRICING POTENTIAL
Most upscale oyster bars sell Pacific oysters for $2.00 to $2.75 per oyster. Kumamotos and Olympias are often $3.00 or more per oyster. A typical fine dining restaurant will have food costs in the neighborhood of 30 to 40 percent; however, the chef at EaT in Portland said they will go as high as 50 percent on their oysters because, “that’s what attracts our customers.” Therefore, a $2.50 oyster at a raw bar with a 35 percent food cost would cost the restaurant $0.88 per oyster (or $10.50/dozen).
Restaurant buyers indicated the highest price they paid for oysters was between $0.80 and $0.90 per oyster ($9.60/dz to $10.80/dz delivered). On the lower end, the raw bars interviewed tend to pay about $0.50 per
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 28 oyster, perhaps even lower if they happened to be located close to a farm. Several restaurants said $9.60 to $10.20 per dozen (including freight) would be an attractive price for a high-quality, suspended tray Alaska oyster.
Restaurant menus of some popular raw bars are included in the Appendix for reference.
Selling directly to oyster bars and restaurants will provide opportunities for premium pricing for a high- quality, reliable product (well above that offered by the wholesale market). There are however other costs involved including marketing, handling, and other logistical issues that will offset some of the premium pricing. Selling 1,000 dozen oysters a week or more directly to restaurants would be challenging and likely require significant marketing and logistical manpower.
As in the wholesale market, freight costs are a significant portion of the overall price paid by oyster bars and restaurants. Many restaurants prefer to get the majority of their product from as few distributors as possible and the relationship between restaurant and wholesaler is often quite strong. From the interviews conducted for this study there seems to be good potential for Haa Aaní oysters in this market although it will require a higher level of effort than selling oysters into the wholesale market.
Lower 48 Retail Market
Other than perhaps a chain store specifically featuring Alaskan seafood, retail outlets will probably offer less market potential for sale of Haa Aaní oysters at premium prices. Retail customers typically do not differentiate brands to the same extent as oyster bar customers and therefore competition will be based more on price.
Space in a seafood case is limited and unless the retailer feels they will be able to garner a significant premium by carrying an Alaskan product, West Coast retailers may be less likely to choose Haa Aaní oysters over less expensive Puget Sound or British Columbia oysters. The Santa Barbara Fish Market can buy Kusshi oysters for $0.66 each ($7.92 per dozen) and Chef Creek oysters for $0.41 each ($4.92 per dozen) delivered. Fanny Bay oysters from Washington were available from his broker for $0.49 per oyster ($5.88 per dozen). This store typically carries a half dozen varieties and sells 10 to 200 dozen per week depending on the time of year, the price, and the variety.
According to one grocer, a typical store mark-up on oysters is about 30 percent. At this mark-up, an oyster selling for $0.99 would cost the store about $0.69 or about $8.30 per dozen. These figures assume no dead-loss or spoilage. Kumomoto’s selling for $1.49 each would cost the retailer about $1.04 or $12.50 per dozen.
Stores with greater purchasing power, such as Whole Foods, may be able to aggressively negotiate better deals that smaller chains or individual stores.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 29 Mark Hernandez, regional seafood buyer for Northern California Whole Foods stores, indicated many Whole Foods stores get their oysters from large distributors like Steve & Mike’s Shellfish. “Whole Foods doesn’t have the distribution channels to deal with oysters,” he says. Whole Foods does, however, have experience buying seafood out of Yakutat (having previously owned Yakutat Seafoods) and they still buy a significant volume of product from Yakutat. The retail prices in the previous photos were confirmed for Whole Foods stores in Portland, OR and Sonoma, CA. Kusshi oysters were selling for $1.49 in the Portland store. Fanny Bay oysters sold in two separate Southern California Whole Foods stores were priced at $1.29 per oyster.
In Vancouver, British Columbia, Effingham Inlet oysters – a high-quality suspended tray oyster - were being sold at Whole Foods for C$0.79 a piece. However, that store is located on the same street as the largest oyster distributor in British Columbia – likely explaining the lower prices.
In April 2011, a vendor in Pike Place Market in Seattle featured oysters ranging from $6.99 per dozen for “Pacific oysters” to $13.99 per dozen for Kussi’s.
It is recommended that Haa Aaní explore the possibility of working with an upscale retailer as part of its overall marketing mix. Retailer’s like Whole Foods, Wegman’s, or Trader Joe’s could handle enormous volume and simplify sales logistics for Haa Aaní. However, there is likely to be significant price pressure for Haa Aaní’s high-end product. Sealaska has already cultivated a relationship with Whole Foods so this would seem to be a good starting point.
Finding the right person to contact at a national grocery chain can be difficult. There can be various levels of regional and national buyers. Store seafood managers are generally required to purchase through regional mangers although some stores may have more autonomy. One approach is to call or visit a store and talk to the seafood manager. They know the company buyers and will be able to provide a sense of potential demand for various oyster varieties. This “front-line” information can prove valuable in assessing that chain’s market potential. Haa Aaní will eventually need to contact someone at the corporate level and, if there is interest, submit paperwork to become a vendor.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 30 International Markets
Communicating with top-notch oyster bars and restaurants in cities outside the U.S. is more difficult due to language barriers and time zone differences. A marketing strategy could include contacting fine hotels in cities such as Hong Kong, Beijing, Paris, London, Dubai, Tokyo, Sydney, Rio de Janeiro, Berlin, Madrid, Rome, and Athens. Significant time and effort would be required to establish relationships with restaurants in these or other foreign cities and sales volumes for each customer would be relatively low.
The Sheraton Hong Kong Hotel and Towers has a world-renowned oyster bar that prides itself on featuring oysters from around the world, oyster prices at the Sheraton are far above what is typically seen state-side. Shipping via Alaska Airlines to Anchorage and then FedEx to Hong Kong would be relatively time efficient but expensive. The best way to test international markets may be to work through an existing Alaska seafood processor doing business in Asia. Jim Erickson at Alaska Glacier Seafood’s in Juneau may be a good contact to learn more about international opportunities.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 31 Transportation, Logistics, and Quality
Shipping
Yakutat is fortunate to receive daily north-bound and south-bound jet service from Alaska Airlines. Except for September, when north-bound morning flights can be full, shipping capacity should not be an issue. Due to the current spike in fuel prices, cargo rates are relatively high when compared with rates over the last few years. While it is unknown how fuel prices may trend in the future, freight costs will always have a significant impact on the final cost of delivered product. Alaska Air Cargo Seafood Express rates, provided below, include shipping charges as well as fuel and security surcharges, and taxes. Alaska Air Cargo hosts an online rate calculator that simplifies estimating rates.2
Rates for shipping 30 to 159 dozen oysters to major markets served by Alaska Airlines currently range from about $2.38 to $4.05 per dozen depending on final destination. The lowest air freight rates from Yakutat are to Anchorage and Fairbanks. Rates for 325 dozen or more oysters range from $2.05 to $3.75. Rates for shipping less than 30 dozen would be higher per dozen as they are based on minimum rate charges.
As an example, a dozen oysters that sell for $5.00 in Yakutat will cost $7.61 per dozen for a shipment to Seattle of 30 to 159 dozen, $7.49 for a shipment of 160 to 324 dozen, and $7.22 for a shipment of 325 dozen or more. The rates below include packaging weight but exclude the cost of packaging, insurance, and any additional transportation costs from the airport to the purchaser. Shipments of 30 to 159 dozen to Juneau would equate to about $7.54 per dozen at a price of $5.00 and $8.04 at $5.50 per dozen.
Alaska Air Cargo Cost Per Dozen from Yakutat to Major Market Airports 30-159 160-324 325+ dozen dozen dozen Zone Destination (100# rate) (500# rate) (1,000# rate) 2 Anchorage/Fairbanks $2.38 $2.22 $2.05 3 Southeast Alaska $2.54 $2.41 $2.22 4 Portland/Seattle $2.61 $2.49 $2.33 6 California, Nevada, Arizona $3.35 $3.20 $3.01 Austin/Chicago/Dallas/Denver 7 $3.50 $3.38 $3.19 Houston/Minneapolis Atlanta/Boston/New York 8 $4.05 $3.91 $3.75 Washington DC/Miami Source: Alaska Air Seafood Express Air Cargo Note: Rates are per dozen based on an average of 2.7 pounds per dozen shipped in 50 pound boxes with six pounds of packaging including the box. This results in about 16 to 17 dozen oysters per 50 pound box. Rates include $0.22/lb fuel and $0.04/lb security surcharge.
Additional delivery charges from the airport to the customer can also add significantly to oyster costs. For example, Seattle-based Commodity Forwarders Incorporated (CFI) estimated that a shipment of 10 boxes
2 Seafood rates-http://www.alaskaair.com/as/www2/Cargo/images/Seafood-Express-Rates_20100301.pdf Rate calculator-http://cargo.alaskaair.com/Cargo%20Rate%20Calculator%20Web%20UI/CargoRateRequest.aspx Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 32 (weighing 50 pounds each) containing about 17 dozen oysters each, going to five different Seattle customers would cost $97, or about $0.57 per dozen.
While some oysters are shipped via FedEx, this option costs significantly more than shipping via air freight and is likely not feasible for shipping large quantities of Haa Aaní oysters. FedEx rates and surcharges can be found at: http://fedex.com/us/service-guide/rates-surcharges/index.html. FedEx staff indicated various discounts could be available depending on a number of factors.
Logistical Considerations
Testing
A Paralytic Shellfish Poisoning (PSP) test must be performed for every batch of oysters harvested. The test costs $140 to $150 (including the Goldstreak fee). The only testing facility in Alaska is located in Palmer. Each sample must contain at least 150 grams of drained weight (shucked) and must contain a minimum of 12 animals. The turnaround for testing is typically 24 to 48 hours.3 Growers generally harvest batches of oysters once per week to every 10 days and hold them in temporary cool storage until test results are returned and then ship the product.
Growers must submit a sample for PSP testing at least once a month, even during months when not be selling oysters. The Department of Environment Conservation’s Uniform Shellfish Sampling Plan for Paralytic Shellfish Poison (PSP) is available at: http://www.dec.state.ak.us/eh/docs/fss/Shellfish-Sample-Plan.pdf. Additional information is available from the Alaska Sea Grant Marine Advisory Program at http://seagrant.uaf.edu/bookstore/pubs/M-02.html
Packaging
There is a myriad of product packaging available, ranging from traditional wet-lock boxes to fully-lined Styrofoam containers. Good quality packaging will help to preserve the freshness of the product and protect it from damage during shipping. The fully-lined Styrofoam packaging provides the highest level of insulation and protection but at a much higher cost. At a minimum, oysters should be packed in four mil plastic bags, in a wet-lock box, cups facing up. A 50-pound box should have two of three gel packs included. Styrofoam sheets may be added to the top, bottom and sides to provide additional insulation. Boxes should be securely banded and clearly marked “perishable” and “this side up.” An Alaska Airlines representative stated that if boxes are not on a pallet they cannot guarantee a wet-lock box will not be turned upside down by baggage handlers (potentially allowing the oyster’s liquor to leak out). More information on shipping is available from Sea Grant or the Alaska Seafood Marketing Institute at: http://www.alaskaseafood.org/industry/qc/pages/pub-hwcs.html
Ground Shipping and Delivery
It is essential to work with – or become – a “known-shipper” with Alaska Airlines (or other carriers) to ship oysters. Haa Aaní should consider establishing their holding facility as a certified screening facility with TSA.
3 Personal conversation with Ray RaLonde, April 2011
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 33 Becoming a TSA-approved certified shipper allows cargo check-in two hours before takeoff and has a lower security screening fee. In addition, as a certified shipper TSA will generally not open up boxes for inspection. Contact Shannon Stevens at Alaska Air or visit the following website for more information: https://alaskacargo.custhelp.com/app/answers/detail/a_id/1
Shelf Life
Oysters can have a shelf life of two weeks or more if kept cool and moist. Restaurants and distributors interviewed for this study infrequently cited shelf life as a problem. Haa Aaní oysters will need to be held in storage for one to three days while a sample is being tested for PSP. Once cleared, the oysters can then be shipped.
Oysters delivered to a large wholesaler will travel another day, possibly two, depending on flight schedules. The oysters will spend one to three days in the wholesalers’ warehouse, who then may sell to another smaller wholesaler/distributor, where they might sit for another couple days before final delivery to a restaurant. In other words, it could take 10 days to reach a restaurant, which leaves little time for the restaurant to sell the oysters while they are fresh. Oysters shipped directly to an oyster bar or restaurant would likely arrive within three to five days after being removed from the water. As previously mentioned, good packaging will be required to achieve the maximum shelf life for Haa Aaní oysters.
The University of Alaska Ketchikan Campus received a USDA grant in 2009 to study ways to extend the shelf life of fresh oysters that could result in growers shipping their product via less expense but slower transportation methods such as the Alaska Marine Highway System.
Oyster Quality
At a wholesale price of about $7.00 per dozen and up Haa Aaní will be competing with the very highest- quality oysters on the market. Established brands include:4
• Kumamoto (WA/CA, Crassostrea sikamea) • Effingham Inlet (BC, Crassostrea gigas) • Kusshi (Deep Bay, BC, Crassostrea gigas) • Olympia (WA, Ostrea lurida) • Penn Cove Selects (BC, Crassostrea gigas) • Beau Soleil (BC, Crassostrea virginica)
In addition to those listed above, Alaska oyster producers, such as Canoe Lagoon and Pearl of Alaska, have created products that meet the quality needs of the high-end oyster market and have established strong brand recognition. In order to receive a premium price, Haa Aaní will need to produce and deliver oysters of a similar quality.
4 An interesting oyster evaluation table created by Penn Cove Shellfish is located in Appendix A.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 34 Throughout this report all pricing discussions are based on the assumption that oysters are properly and consistently graded and sized. It also assumed that logistical challenges are managed so as to preserve shelf life to the maximum extent possible. Whether oysters are sold directly to restaurants/retailers or through a distributor, the price paid will depend on product quality and careful logistics management. Suspended tray culture technique is superior because it produces a fast growing, high-quality oyster. However, careful logistics management is ultimately just as important in providing a quality product to the market. Additional information on maintaining oyster quality can be obtained from Sea Grant at: http://seagrant.uaf.edu/map/aquaculture/index.html
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 35 Organizational Considerations
One of the best opportunities Haa Aaní has to distinguish its oysters from other growers is through the creation of a strong brand image. Creating a brand takes significant effort, time and expense. Whatever branding strategies Haa Aaní pursues, the strategy should be well defined and in place before the first oyster is sold.
Cooperative Distribution
One important consideration before developing a brand image is the concept of cooperative marketing. Will all oysters sold by Haa Aaní be marketed under the same name? What about the potential for selling oysters from Pearl of Alaska, which are bottom-cultured and different in appearance than Haa Aaní tray-culture- oysters? Will those oysters need to be sold as Pearl of Alaska or will they be absorbed into the Haa Aaní brand name? Marketing multiple brands has cost implications (collateral material and other marketing expenses) as well as complicating the process of filling orders for specific varieties. Selling all oysters under one brand name would lead to efficiencies in marketing that would reduce costs and may also allow for product substitution (when products are relatively similar quality, size, and appearance) and result in fewer disruptions in supply if oysters from one farm become unavailable.
Image and Branding
While quality and reliability are paramount to achieving a premium price, Haa Aaní will also find it useful to sell its story. More and more consumers are interested in where their food comes from and who is producing it. Southeast Alaska and Alaska Native culture provide an intriguing storyline. The image of Alaska Seafood is meaningful for distributors, restaurants, and consumers. According to distributors, restaurant managers, and chefs interviewed for this study, the image of Alaska seafood can be leveraged as a sales tool. Creating a brand image and logo that incorporates the message “Alaskan” and “Alaska Native grown” will be important. Regardless of the specific name, Haa Aaní oysters will be sold as “Alaskan” oysters so it may not necessarily be as important to have the word “Alaska” in the name.
One option is to incorporate something unique regarding where the oysters are grown. Yakutat and Alaska, in general, present a number of possible marketing angles. Some suggested names include Aurora Lites, Snow Whites, Whale Tail, Cannon Beach Shooters, Fairweather or Situk Smalls. Branding as “Haa Aaní” oysters is also an option.
Haa Aaní will want to produce high-quality point of sale pieces such as brochures, posters, and table tents and provide them to end-users such as restaurants and retail outlets. One British Columbia grower has utilized Facebook to successfully promote a brand image directly to the public (http://www.facebook.com/effingoyster). Haa Aaní should consider marketing strategies through social media outlets.
In the early 1990’s Yakutat oysters received some positive brand development when Yak-tat Kwaan threw a potlatch for David Rockefeller Jr. when he visited the area. Mr. Rockefeller liked their oysters so much he allowed the use of his likeness and quotes in marketing materials free of charge. Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 36
Appendices
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 37 Appendix A List of Contacts
Note: Those distributors with a name indicate the person McDowell Group made contact with.
Wholesalers/Distributors
Marinelli Shellfish - (Bill Marinelli) 206-870-0233 2383 S 200th St. Seatac WA 98198-5571 [email protected] www.marinellishellfish.com Notes: Perhaps the largest high-end oyster distributor (outside of vertically integrated companies like Taylor Shellfish Farms) in the U.S. Sells $10 million worth of oysters per year. Have purchased Alaska oysters before but quality was very inconsistent. Had problems with grading, shelf-life, and packaging. Pays as much as $7 to $8 per dozen for oysters, but says most of his customers come looking for something under $5 per dozen. Might be interested in Alaska oysters.
Penn Cove Shellfish - (Keith) 425-743-2033 PO Box 148 Coupeville WA 98239-0148 [email protected] www.penncoveshellfish.com Notes: “$6/dozen (plus freight) would be fairly competitive with tray raised oysters from B.C, those would wholesale in the $8/dozen range.” “Some of the B.C. tray raised oysters go for $6.50/dozen.” “Rob Tyron from Effingham Inlet does a great job marketing, they’re on Facebook/Twitter, and they blog – generates lots of buzz.””We sell 400 dozen Kusshi’s a week.” Indicated they’d be interested in buying Alaska oysters.
Steve & Mike Shellfish Co., Inc - (Lou) 415-674-8611 Pier 5455 Ship B-9 San Francisco CA 94133 Notes: “I get all the B.C. oysters I want delivered to my door for $4.50/dozen, and that’s on the high end.” “We’re one of the top four or five largest oysters distributors in the U.S. – 60 percent of my business comes from areas outside the West Coast.” Volume is ~1,000 bags a week. Interested in Alaska oysters but only for a low price.
K&B Seafood - (Tom Kehoe) 176 Laurel Rd. East Northport NY 11731 www.kandbseafood.com [email protected] 631-261-8161 Notes: Have purchased Alaska oysters in the past, and thought highly of them. Not much supply of Alaskan product right now and what is available is expensive – had one producer offer him product for $1.00 per oyster last year. That price is too high, but he’d be interested for $0.60 per oyster or $7.20/dz (including freight), “Yes, there’s a market at that price.” Estimated he could buy 2,000 to 3,000 per week at those prices, if the quality and branding was good. Also exports to clients in Asia and runs another company called SeaFlight Logistics which does seafood shipping logistics. They are interested in buying Alaska oysters.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 38 American Mussel Harvesters --- (Lauren Nutini) 165 Tidal Drive North Kingstown RI 02852 www.americanmussel.com [email protected] 401-294-8999 Notes: Sells 200 dozen Canoe Lagoon oysters per week. Would not disclose prices of certain varieties but said they pay $4 to $9 per dozen (including freight) for their product, and “Alaska would be closer to the high-end.” Quality and consistency is important. Would be interested in buying more Alaska oysters.
JP’s Shellfish --- (Jefferson) PO Box 666 Eliot ME 03903 www.jpshellfish.com [email protected] 207-439-6018 Notes: Bought from Pearl of Alaska until recently when Pearl started to sell directly to restaurants. Was buying 3,000 to 4,000 oysters per week (during his season) and paying $50 per 100-count ($6.00/dz), including freight, it worked out to $60 per 100-count to NY. They buy 10,000 oysters a week from Pacific Northwest (not including Alaska). He really liked the Pearl of Alaska oysters. JP’s sells mostly to other smaller wholesalers and oyster bars. Suggested branding it with a strong Alaska name, people really react to Alaska seafood. They would be interested in buying Alaska oysters.
Alaskan Feast --- (Jerry Laureano and Dan Kim) New Fulton Fish Market 800 Food Center Dr. – Unit 22 Bronx NY 10474 www.alaskanfeast.com [email protected] 718-842-2288 Notes: “We move large volumes of seafood, several container loads per week. 90 percent of our business is to other small distributors. They had concerns about shelf-life and durability of tray-grown oysters.” They buy beach grown from West Coast for $0.40 to $0.50 per oyster (delivered). They are not very interested in these tray grown oysters.
Foley Fish --- (Mike O’Connor) 24 West Howell St. Boston MA 02125 [email protected] www.foleyfish.com 800-225-9995 Notes: Buys 20 bags a week out of West Coast but laments, “West Coast shipping is so expensive!” Pays $4.40 per dozen (plus freight) for Chef’s Creek oysters (which are lower on the price scale). Interested in buying Alaska oysters.
Alber Seafoods --- (Max Boland) 415-292-1640 Pier 45 Shed B Unit 4 San Francisco CA 94124-1013 www.alberseafoods.com 888-292-1640
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 39 Pier 45 Seafood --- (Mel Wickliffe) 45 Pier #11B San Francisco CA 94133-1005 415-409-3474 Note: Sells east coast oysters to West Coast clients. Market for West Coast oysters is very competitive.
DiCarlo Seafood Co., Inc. 842 Pioneer Ave Wilmington CA 90744-3749 www.dicarloseafood.com 310-830-3460
Smokey Bay Seafood Company Suite 309 – 896 Cambie Street Vancouver BC V6B 2P6 Canada 877-676-6539 www.smokeybay.com
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 40 OTHER OYSTER DISTRIBUTORS IN WASHINGTON STATE AND CALIFORNIA (SOURCE: URNER BARRY):
Name City State Phone All Seas Wholesale, Inc San Francisco CA 415-206-7327 American Fish & Seafood Company Sacremento CA 775-972-3737 American Fish & Seafood, Inc Los Angeles CA 213-612-0350 American Sea Food Co, Inc San Diego CA 619-226-1500 Anderson Seafoods, Inc Anaheim CA 714-777-7100 Brady's Oyster, Inc Aberdeen WA 800-572-3252 Buz's Crab, Inc Redding CA 530-243-2120 Captain Salty's Seafood, Inc Garden Grove CA 714-891-5089 Central Coast Seafoods, Inc Atascadero CA 805-462-3474 Central Fish Company Fresno CA 559-237-2049 Chelsea Farms Olympia WA 360-866-8059 Chesapeake Fish Co, Inc San Diego CA 619-238-0526 City Sea Foods, Inc Los Angeles CA 213-626-5586 Crown Prince, Inc City of Industry CA 626-912-3700 Diess Seafood Anaheim CA 714-974-9513 Elwha Fish Company, Inc Port Angeles WA 360-457-3344 Farallon Fisheries San Francisco CA 650-583-3474 First Class Foods, Inc Hawthorne CA 310-676-2500 Fish King Seafood Company Burbank CA 818-841-7368 Fog City Trading Co, Inc Daly City CA 650-878-8678 GB Seafood Co, LLC Redmond WA 425-444-9092 Goldberg & Solovy Foods, Inc Los Angeles CA 323-581-6161 H & N Foods International Los Angeles CA 415-821-6637 Harvest Meat Company National City CA 619-477-0185 Hog Island Oyster Co Marshall CA 415-663-9218 Holly Seafood Company Los Angeles CA 213-625-2513 Hood Canal Oyster Co, Inc Silverdale WA 360-830-9039 Hood Canal Seafood Quilcene WA 360-765-3288 International Business Trading Corp Monterey Park CA 323-277-0000 Johnson & Gunstone Port Townsend WA 360-797-7302 Johnson Oyster Co, Inc Inverness CA 415-669-1149 Jordano's Food Service Santa Barbara CA 805-964-0611 K & C Food Sales, Inc Los Angeles CA 213-689-9566 K & M Packing Co Vernon CA 323-585-5318 K & S Seafood Company San Jose CA 408-294-7013 Kanaloa Imports Santa Barbara CA 805-966-5159 Kiem's Produce & Seafood San Francisco CA 415-550-1394 Long Beach Seafood Company Long Beach CA 562-435-5357 Los Angeles Fish & Oyster Company San Pedro CA 310-832-4249 Los Angeles Fish Company Los Angeles CA 213-629-1213 Minterbrook Oyster Company Gig Harbor WA 253-857-5251 Mitsubishi International Corporation Los Angeles CA 213-687-2800
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 41 Name City State Phone Monterey Fish Market Berkeley CA 510-525-5600 Mutual Fish Co, Inc Seattle WA 206-322-4368 Natco Worldwide Representatives Valencia CA 661-296-5999 New Day Fisheries, Inc Port Townsend WA 360-385-4600 New Zealand Seafood Vernon CA 323-584-2400 Nisbet Oyster Co, Inc Bay Center WA 360-875-6629 Nor-Cal Seafood Oakland CA 510-532-7823 Ocean Beauty Seafoods, Inc Seattle WA 206-286-2580 Ocean Crystal Seafood Los Angeles CA 213-612-0881 Osprey Seafood of California, Inc San Francisco CA 415-291-0156 Pacific Giant, Inc Vernon CA 323-587-5000 Pacific Harvest Seafoods, Inc San Juan Bautista CA 408-295-2455 Pacific Northwest Best Fish Co Ridgefield WA 360-887-4268 Pacific Shellfish, Inc San Diego CA 858-272-9940 Port Chatham Smoked Seafood Everett WA 425-407-4000 Purcell International Walnut Creek CA 925-933-6100 Qualy-Pak Specialty Foods, Inc San Pedro CA 310-518-3624 Royal Hawaiian Seafood San Francisco CA 415-206-2095 San Diego Seafood National City CA 619-474-4000 San Pedro Fish Market San Pedro CA 310-832-4251 Seabear Company Anacortes WA 360-293-4661 Seafood Center San Francisco CA 415-752-3496 Seafood Suppliers Corp San Francisco CA 415-834-0255 South Shores Seafood, Inc Anaheim CA 714-956-2722 Stagnaro Brothers Seafood Co, Inc Santa Cruz CA 831-423-1188 University Seafood & Poultry Company Seattle WA 206-632-3900 Westcott Bay Seafarms Friday Harbor WA 360-378-2489
Seafood Restaurants and Oyster Bars
McDowell Group was able to do personal interviewers with buyers and executive chefs from nine oyster bars.
Grand Central Oyster Bar (Sandy) New York, NY 212-490-6650 www.oysterbarny.com [email protected] Notes: Sells lots of oysters, maybe the most of any raw bar in U.S. Would buy 100 dozen per week for as much as $0.85 per oyster (freight included) if the quality and branding is good. Has a truck that can pick up product from Newark airport. Buys 95 percent of his product direct from farmers. Very interested.
Catch 35 Seafood Restaurant (Eddie Sweeney) Chicago, IL (2 locations) 312-346-3500 www.catch35.com [email protected]
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 42 Notes: Sells about 150 dozen high-end oysters per week. Pays a lot for Chefs Creek oysters from Foley Fish - $0.85 per oyster. Typically sell their oysters for $11.95 for half dozen. Very interested.
Blacksalt Washington, DC 202-342-9101 www.blacksaltrestaurant.com [email protected] Notes: Carries six to 12 varieties and sells 10 to 20 dozen per week of each variety. Highest he pays is $0.90 for Kumamoto’s but says $0.80 and below (including shipping) is an attractive price for Alaska Pacific oysters.
Emmett Watson’s Oyster Bar (Thurman) Seattle, WA 206-448-7721 [email protected] Notes: Sells 50 to 150 dozen per week. Typically pays $4.25 to $6.00 per dozen, and they try to stay on the cheaper side. Penn Cove Selects are the most popular. Also carry Fanny Bay, Gold Creek, and Deep Bay. Not very interested in Alaska oysters.
EaT: An Oyster Bar (Ethan) Portland, OR 503-281-1222 www.eatoysterbar.com [email protected] Notes: Sell 250 to 300 dozen oysters per week. Second largest oyster bar in Portland. Also wholesale to other restaurants, and trying to grow that business. Buys direct. Pays $5 to $11 per dozen depending on the variety and how marketable it is. Food costs for their oysters run 40 to 50 percent. Typically carry eight to 12 varieties. Very interested.
Bar Avignon (Jeremy) Portland, OR 503-517-0808 www.baravignon.com [email protected] Notes: Usually carries three types of oysters on their menu. Consumption spikes in the summer but it can be very hard to get product, “Things shut down last year during July/August.” Sells eight to 10 dozen per week of each variety. Pays $5.75 per dozen for lower-end Pacific’s but $12 for Kumamoto’s. Somewhat interested.
Anchor Oyster Bar (Roseanne Grimm) San Francisco, CA 415-431-3990 www.anchoroysterbar.com Notes: Buys mostly from farms but some from wholesalers. Has some product FedEx’d from Cape Cod, “and they are great.” Pays up to $1.05 per oyster but could go higher maybe depending on the oyster. Sells “a couple thousand oysters a week.” Very interested.
Grand Pu Bah (Steven) San Francisco, CA 415-255-8188 www.grandpubahrestaurant.com Notes: Sells a couple dozen each day of each oyster variety. Probably sells 50 to 60 dozen of all oysters each week. Pays $0.55 to $0.80 per oyster (shipping included) from distributors. Somewhat interested.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 43 AquaGrill (Jeremy Marshall) New York, NY 212-274-0505 www.aquagrill.com [email protected] Notes: Sell 800+ dozen oysters per week and carries 25 to 30 varieties. Sell 65 dozen Canoe Lagoon’s a week. Likes the Canoe Lagoons very much – thinks there isn’t much to compare them to because they are so good (very deep cup). “We expect 5 percent loss on the oysters we buy, after that they want credit.” Would be very interested for $0.80 or less per oyster (shipping included). They have not had quality/shipping issues with Canoe Lagoons or any other suspended tray variety.
OTHER OYSTER BARS AND SEAFOOD RESTAURANTS THAT FEATURE OYSTERS ON THE HALF SHELL:
Name City State Phone The Oceanaire 12 cities McGarvey’s Saloon Annapolis MD 410-263-5700 Seastar Restaurant & Raw Bar Bellevue WA 425-456-0010 Neptune Oyster Bar Boston MA 617-742-3474 Union Oyster House Boston MA 617-227-2750 Island Creek Oyster Bar Boston MA 617-532-5300 B&G Oysters Boston MA 617-423-0550 Citizen Public House & Oyster Bar Boston MA 617-450-9000 Blue Oyster Café & Lounge Campbell River BC 250-286-1131 The Publican Chicago IL 312-733-9555 C-House Chicago IL 312-523-0923 Perennial Chicago IL 312-733-9555 Fulton's on the River Chicago IL 312-822-0100 Shaw's Crab House & Oyster Bar Chicago IL 312-527-2722 Hugo's Frog Bar & Fish House Chicago IL 312-640-0999 Balsan Chicago IL 312-646-1400 Nick’s Fish Market Chicago IL 312-621-0200 Swankey's Oysters & Libations Denver CO 303-297-2399 Highland Pacific Restaurant & Oyster Bar Denver CO 303-477-6644 Argyll Gastro-Pub Denver CO 720-382-1117 Smitty's Oyster House Gibsons BC 604-886-4665 Seablue by Michael Mina - MGM Grand Las Vegas NV 702-891-3486 Rick Moonen's RM Seafood - Mandalay Bay Las Vegas NV 702-632-9300 Bouchon - Venetian Las Vegas NV 702-414-6200 Morels French Steakhouse & Bistro - Palazzo Las Vegas NV 702-607-6333 Todd English PUB - City Center Las Vegas NV 702-489-8080 Commes Ca Los Angeles CA 323-782-1104 Hungry Cat Los Angeles CA 323-462-2155 Kendall's Brasserie at the LA Music Center Los Angeles CA 213-973-7322 Providence Los Angeles CA 323-460-4491 Water Grill Los Angeles CA 213-891-0900 Craft Los Angeles CA 213-620-1588 BLT Steak LA West Hollywood CA 310-360-1950
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 44 Name City State Phone Monterey’s Fish House Monterey CA 831-373-4647 Sugarcane Raw Bar Grill Miami FL 786-369-0353 The River Seafood & Oyster Bar Miami FL 305-530-1915 Casablanca Seafood Bar & Grill Miami FL 305-371-7094 Quinn's Miami FL 305-673-6400 Pearl Oyster Bar New York NY 212-691-8211 The Mermaid Oyster Bar New York NY 212-260-0100 Ed's Chowder House New York NY 212-956-1288 Blue Ribbon New York NY 212-274-0404 Oscar’s Grille New York NY 212-872-4920 Momofuku New York NY 212-254-3500 Stanton Social New York NY 212-995-0099 Fishtail New York NY 212-754-1300 Meade’s New York NY 212-791-1818 Parlor Steakhouse New York NY 212-423-5888 Provence Restaurant & Bar New York NY 212-475-7500 Lure Fish Bar New York NY 212-431-7676 Snockey's Oyster & Crab House Philadelphia PA 215-339-9578 Oyster House Philadelphia PA 215-567-7683 Dan & Louis Oyster Bar Portland OR 503-227-5906 Thistle LLC Portland OR 503-472-9623 Jonathan's Portland OR 503-689-1051 Southpark Seafood Grill and Wine Bar Portland OR 503-326-1300 Wild Abandon Portland OR 503-232-4458 Wildwood Restaurant Portland OR 503-248-9663 Urban Farmer Portland OR 503-222-4900 Corbett Fish House Portland OR 503-246-4434 The Laughing Oyster Powell River BC 604-483-9775 Matt's Rotisserie & Oyster Lounge Redmond WA 425-376-0909 McGrath's Fish House Salem OR 360-514-9555 The Fishery San Diego CA 858-272-9985 Hog Island Oyster Co San Francisco CA 415-391-7117 Swan Oyster Depot San Francisco CA 415-673-1101 Scott's Seafood Bar & Grill San Francisco CA 925-934-1300 Kingfish San Francisco CA 650-343-1226 Scott's Restaurants Jack London Square San Francisco CA 510-444-3456 Mayes Oyster House San Francisco CA 415-885-1233 Grand Pu Bah San Francisco CA 415-255-8188 Franciscan Crab Restaurant San Francisco CA 415-362-7733 Café Rouge San Francisco CA 510-525-1440 Walnut Creek Yacht Club San Francisco CA 925-944-3474 The Dead Fish San Francisco CA 510-787-3323 Crab Landing San Francisco CA 650-712-1288 Eagle Café San Francisco CA 415-433-3689
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 45 Name City State Phone Epic Roasthouse San Francisco CA 415-369-9955 Anchor & Hope San Francisco CA 415-501-9100 Tadich Grill San Francisco CA 415-391-1849 Absinthe Brasserie & Bar San Francisco CA 415-551-1590 Sam's Chowder House San Francisco CA 650-712-0245 Bar Crudo San Francisco CA 415-956-0396 Zuni Café San Francisco CA 415-552-2522 Etta's Seafood Seattle WA 206-443-6000 Waterfront Seafood Grill Seattle WA 206-956-9171 Ray's Boathouse Seattle WA 206-789-3770 Elliott's Oyster House Seattle WA 206-623-4340 Chandler's Crabhouse Seattle WA 206-223-2722 Place Pigalle Restaurant Seattle WA 206-624-1756 Blueacre Seafood Seattle WA 206-659-0737 McCormick & Schmick's Seafood Seattle WA 206-623-5500 Ponti Seafood Grill Seattle WA 206-284-3000 The Brooklyn Seafood, Steak, & Oyster House Seattle WA 206-224-7000 The Crab Pot Restaurant & Bar Seattle WA 206-624-1890 Frank's Oyster House Seattle WA 206-525-0220 Shuckers Seattle WA 206-621-1984 El Guacho Seattle WA 206-728-1337 Flying Fish Restaurant Seattle WA 206-728-8595 Mountain Pride Sun Valley ID 208-725-5600 Rodney's Oyster House Toronto ON 416-363-8105 Rodney's Oyster House Vancouver BC 604-609-0080 Joe Fortes Seafood Restaurant Vancouver BC 604-669-1940 Coast Seafood Restaurant Vancouver BC 604-685-5010 The Sandbar Seafood Restaurant Vancouver BC 604-669-9030 Provence Marinaside Seafood Restaurant Vancouver BC 604-681-4144 Bridges Restaurant Vancouver BC 604-687-4400 Monk McQueens Fresh Seafood & Oyster Bar Vancouver BC 604-877-1351 Go Fish Ocean Emporium Vancouver BC 604-730-5040 The Shore Club Vancouver BC 604-899-4400 Oyster Seafood Restaurant Vancouver BC 604-899-0323 Blue Water Café & Raw Bar Vancouver BC 604-688-8078 Crabshack Grill and Oyster Bar Vancouver BC 604-907-2500 Chambar Vancouver BC 604-879-7119 Tony's Fish & Oyster Café Vancouver BC 604-683-7127 ShuRaku Japanese Restaurant Vancouver BC 604-687-6622 Tomokazu Japanese Restaurant Vancouver BC 604-279-9077 McGrath's Fish House Vancouver WA 360-514-9555 Ferris' Oyster Bar & Grill Victoria BC 250-360-1824 Hank's Oyster Bar Washington DC 202-462-4265 Sea Catch Restaurant & Raw Bar Washington DC 202-337-8855
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 46 Name City State Phone Bobby Van's Steakhouse Washington DC 202-589-0060 Sequoia Washington DC 202-944-4200 J. Pauls Washington DC 202-333-3450 Anthony's Seafood Restaurants Multiple WA/OR 425-455-0732 Bluewater Grill Multiple 602-277-3474
INTERNATIONAL OYSTER BARS:
Name City Country Phone Beijing & Lan Club China +010-51096012/13 Shanghai Dotcod Seafood Restaurant & Hong Kong China +852-2810-6988 Oyster Bar Knutsford Steak Chop & Oyster Bar Hong Kong China +2316-2381 Hilton Singapore Hotel Singapore Singapore +65-67-372-233 Lebua at State Tower Bangkok Thailand +66-2-624-9999 Bentley's Oyster Bar and Grill London UK +44-20-7734-4756 St. Pancras Grand Champagne, London UK +44-20-7870-9900 Oyster Bar & Restaurant Sheraton Hong Kong Hotel & Hong Kong China +852-2369-1111 Towers Bofinger Paris France +33-0-1-42-72-8782 Wilton's Restaurant & Oyster Bar London UK +44-0-0207-629-9955 Park Hyatt Dubai Dubai UAE +971-4-602-1234 Amwaj - Shangri-La Hotel Dubai UAE +971-4-393-9001 The Wharf Dubai UAE +971-4-366-6730 Ostrea Tokyo Japan +03-6215-6688 In Vino Moscow Russia +7-095-230-3430
Retailers
Whole Foods Inc. Mark Hernandez – Northern California Regional Seafood Buyer [email protected] 510-396-3324 cell
Santa Barbara Fish Market Santa Barbara, CA Brian – Owner 805-965-9564
Alaskan & Proud Grocery Store Juneau, AK 907-586-3101
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 47 Super Bear Grocery Store Juneau, AK 907-789-0173
Anchorage Wholesalers
Favco Inc-Alaska Seafood Processing and Distribution Anchorage, AK Bill Buck – Wholesale buyer 1205 W. 29th Ave Anchorage, AK 99505 907-278-1525/ Fax: 907-276-6656
10th & M Seafoods Anchorage, AK Dannon Southall – Wholesale buyer 1020 M St Anchorage 970-272-3474 https://www.10thandmseafoods.com/
Sagaya Wholesale Anchorage, AK Steve – Wholesale buyer 907-272-5173
Icy Strait Point Hoonah, AK Stu Campbell – Food and Beverage Director 907-523-3681
Small Ships
Hapag-Lloyd Breman Kreuzfahrten GmbH Ballindamm 25D-20095 Hamburg, Germany Telephone +49(0)40 / 3001 4600Fax +49(0)40 / 3001 4601
Lindblad Expeditions Sea Bird/Sea Lion 96 Morton Street9th Floor New York, New York 100141 212-765-7740
Silversea Cruises Silver Shadow 110 East Broward Blvd Fort Lauderdale, FL 33301 Phone: 1-877-276-6816 or +1-954-522-2299 Fax: +1-954-356-5881
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 48 American Cruise Lines, Inc 741 Boston Post Road, Suite 200 Guilford, CT 06437 800-460-4518
Alaskan Dream Cruises P.O. Box 1049 Sitka, AK 99835 Office: 907-747-8100 www.alaskandreamcruises.com
Yacht Provisioning Juneau Julia Black 907-723-7259
Shipping and Logistics
Commodity Forwarders Incorporated P.J. Cramner – ANC Station Manager 907-243-1144 [email protected]
Alaska Airlines Shannon Stevens – Seafood/Perishables Cargo Sales Manager 907-266-7850 [email protected]
FedEx Erin McKenzie – Anchorage Senior Account Executive (Specializes in Seafood) 907-382-5550 [email protected]
ACE Air Cargo Greg Hawthorne – Director of Marketing 907-334-5111 office 907-351-6651 [email protected]
General Information
A wealth of background on oysters is available online, but one of the better sources we found was this site: http://www.oysteraficionado.webs.com.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 49 OYSTER EVALUATION SHEET SCALE OF REFERENCE 0 = LOW AND 5 = HIGH OYSTERS NOT AVAILABLE IF NO DATA SHOWN IF SPAWN SIGN IS GREATER THAN 3 CHOOSE ANOTHER OYSTER Date of Test 5/4/11 NAME OF OYSTER SIZE SHELL MEAT BRINE SWEET SPAWN CHEF CREEK 2.5 to 3 4434 0 DABOB BAY 3.5 to 4 5433 0 DEEP BAY 34434 0 DEER CREEK 2.54533 0 EVENING COVE 3.5 to 4 4433 0 FANNY BAY 34434 0 FISH POINT 2.54434 0 GOLD CREEK 2.54434 0 GOLDEN MANTLE 34435 0 HUNTER POINT 45534 0 KUMAMOTO 2.5 to 3 5533 0 KUSSHI 2.55433 0 MALISPINA 34433 0 MIRADA 3.5 to 4 5443 0 MIYAGI 3 to 3.55533 0 OTTER COVE 45433 0 PEBBLE BEACH Temporarily Unavailable PENN COVE SELECTS 2.5 to 3 4434 0 RAINIER Temporarily Unavailable Reach Island 35443 0 SISTER POINT 3.5 to 4 5533 0 SNOW CREEK Temporarily Unavailable SUN HOLLOW 3 to 3.54534 0 SUNSET BEACH 3.55533 0 STELLAR BAY 34434 0 TOTEM POINT 55434 0 Appendix B: Selected Menus
*see following pages for printed menus for selected oyster bars and seafood restaurants.
Market Demand Assessment for Haa Aaní Oysters McDowell Group, Inc. • Page 50