MENU alaska Restaurant Customer Research What’s Happening With Alaska Seafood PROTEIN There’s so much to its story. Wild-caught by generations of dedicated families amid majestic snow-capped mountains, rugged coastal shores and 1/ pristine icy waters. Alaska is where the best 3 of consumers limit or quality seafood thrive and according to Datassential, it’s the most appealing origin avo i d m eat

for seafood at restaurants. consumption with Younger generations Read on to learn more about consumer leading the way seafood preferences at chain restaurants and how Alaska is a call-to-action, empowering the restaurants that menu it. Seafood wins over any other protein

Desired Change In Consumption By Protein Type More consumers are trying to decr ease their red meat consumption e as

g to g to 58%

n 52% 51% umptio n re 47% 37% 31% ryi o ns 24% c i nc T

10% 15% 4% 18% e 24% 35% as seafood chicken g to g to nuts beans 40% n re umptio n veggie c

ryi burgers o ns c de T beef pork Consumer Seafood Consumption Seafood is more appealing than plant-based protein trends at If I’m trying to avoid meat, I’ll choose seafood 57% Foodservice over plant-based proteins

I have been trying to eat less meat in recent years 51% gen z loves seafood!

Number Of Monthly Occasions Eating Seafood ■ total ■ gen z ■ millennial ■ gen x ■ boomer At Chain Restaurants Seafood is healthier than plant-based proteins 50% 2.3 2.3 GEN Z eats 2.0 the most seafood 1.9 1.8 away from home I wish restaurants would offer 1.7 more plant-based proteins 46% 1.6 1.6 2x per 1.5 1.4 1.3 month 1.1 1.1 1.1 across I would rather eat plant-based 0.8 all restaurant proteins than seafood 33% segments!

qsr fast casual casual dining

Preferred way to 20% of consumers are eating #1 Seafood consumption more seafood at chain restaurants reduce meat consumption is increase is driven than 2 years ago by desire for with Seafood healthy protein Top 2 Reasons

37% 33% Top 2 consumer Stated benefits of

Eating Seafood Seafood Consumers are healthy 69% is healthier than trying to eat less beef, delicious 60% other proteins chicken, or pork c o n s um e r s wa n t of consumers are unsaHalftisfied with current seafood more Seafood offerings at QSRs on the menu across segments

Half of consumers are interested in seeing more seafood species variety in all restaurant segments qsr: Interest In Seeing More Seafood Species Variety At Each Segment At least 1/3 of customers are interested in seeing more seafood entrees, sandwiches, and appetizers 57% 53% 46% Entrées 44%

Sandwiches 38% qsr fast casual casual

Appetizers 38% Consumers want more seafood Fast Casual: than beef or plant-protein

Interest In Seeing More of Each Protein at Fast Casual

seafood beef plant-based protein

60% — 52% 53% 48% 50%— 47%

40%—

30%—

20%— 10%— Casual Dining: 0%— 87% want more seafood Sandwiches Entrées Appetizers Tacos on the menu, beating out beef and plant-based protein

Interest In Seeing More of Each Protein at Casual Dining

Nearly half of consumers want more seafood Casual Dining: on every part of casual dining menus Seafood 87%

Interest In Seeing More Seafood Dishes at Casual Dining

beef 75% 50% 49% 49% 49% 46% 45% 44% Plant-Based 74% Protein

Appetizers Entrées soups tacos salads bowls Sandwiches top Seafood Seafood prep methods Operators are updating seafood Menu Trends menuing language 1 year 4 year TOP penetration ranked by penetration growth growth

FRIED 53.8% — 1% GRILLED 53.2% — +1% Sustainable SAUTEED 35.3% -1% -8% The menu description is seafood ROASTED 31.6% +2% +4% Key for seafood has seen a SMOKED 25.9% +1% +7% 66% SEARED 22.0% +2% +10% STEAMED 20.2% -1% -7% love/like it BAKED 19.7% -3% -8% +2075% BATTERED 18.0% +1% +5% menu penetration among those BREADED 17.6% — -4% that tried Across all segments, growth GLAZED 13.2% +3% +5% consumers #1 way they decide to sustainable BLACKENED 12.5% — +11% order seafood is after DEEP FRIED 12.4% -8% -16% reviewing other menu choices foods since 2009 ENCRUSTED 10.8% -7% 1% PAN SEARED 10.0% — +5%

1 year 4 year TRENDING penetration ranked by 4-year growth growth growth Seafood Add Ons TARTARE 4.1% -13% +24% SESAME CRUSTED 2.2% +10% +22% SALTED 2.3% — +16% SHUCKED 1.2% -4% +15% +36% menu CEDAR PLANK 1.2% — +15% BRAISED 6.2% +3% +12% penetration CHAR GRILLED 3.4% +8% +11% BLACKENED 12.5% — +11% growth SEARED 22.0% +2% +10% since 2009 POACHED 9.9% +6% +8% SMOKED 25.9% +1% +7% BEER BATTERED 8.7% — +7% A growing number of restaurants CURED 3.8% -2% +7% are offering opportunities to customize by CHILLED 7.1% -1% +7% adding fish or seafood to their meals TEMPURA 9.1% +2% +6% top sauces AND FLAVORS alaska When it comes to seafood, it’s all about Asian flavors Menu Trends 1 year 4 year TOP penetration ranked by penetration growth growth

GARLIC 40.6% +1% -3% BUTTER 27.0% +1% -3% TARTAR 15.6% +6% +5% GINGER 15.0% +1% +2% HERB 12.0% — — Alaska Seafood 11.6% +6% +2% Alaska Seafood is the has seen CURRY Menued RED SAUCE 10.8% -4% -14% BASIL 10.4% -4% -9% Protein Brand CILANTRO 10.3% +3% +10% #1 +8% SWEET AND SOUR 9.3% +3% -7% by both penetration menu penetration growth CREAM SAUCE 9.2% +7% -1% and incidence since 2009 JALAPENO PEPPER 8.5% +4% +21% SALSA 8.1% +2% -10% COCKTAIL SAUCE 7.8% +4% +8% SOY SAUCE 7.4% -3% +16%

1 year 4 year TRENDING penetration Alaska seafood commands a higher price point ranked by 4-year growth growth growth

SRIRACHA 2.2% +7% +70% alaska seafood overall seafood SALSA VERDE 1.2% +29% +66% median price by segment: CHUTNEY 1.0% +1% +44% TRUFFLE 2.0% +16% +43% $31.00 COCONUT CURRY 1.6% +17% +38% AIOLI 5.4% -3% +38% EEL SAUCE 2.5% +8% +35% price % $18.00 gap increase PONZU 3.0% +6% +34% $15.99 BOURBON 1.8% -10% +31% $13.40 $13.95 FAST CASUAL $ 0.29 +3% $11.75 CHIPOTLE SAUCE 1.1% +23% +30% MIDSCALE $ 1.65 +14% $9.44 $9.15 SOUR CREAM 1.8% +13% +28% CASUAL $ 2.04 +15% SPICY MAYO 3.1% +5% +27% FINE DINING $ 13.00 +72% THAI CHILI 1.2% -11% +27% GINGER SOY 1.4% +11% +26% LEMON DILL 1.0% +8% +22% fast casual Midscale casual Fine Dining Consumers Want to Know 59% the Origin and that it's of consumers would order more seafood at restaurants Wild-Caught if they knew its origin

Origin = Increase in Orders Few consumers feel very knowledgeable about the origin of the seafood they eat, yet it would be ordered more often if they knew its origin

SEAFOOD ATTITUDES SEAFOOD DESIRES 51% of Consumers prefer wild-caught seafood I eat seafood because I would eat more seafood It’s perceived to taste better and be more natural I like its taste 75% if it were more affordable 66%

I wish fast food Seafood is healthier than Why do you prefer wild-caught? 70% restaurants would offer 61% meats like beef and pork more seafood variety Tastes better 23% I eat seafood because I would order more seafood at restaurants if More natural 20% it's good for me 70% 59% I knew its origin Healthier 18% I believe seafood is as I trust the restaurant to select seafood varieties filling as meat 69% 56% Fresher 13% that I'll like Negative perceptions I am very knowledgeable I would order more of farms 12% about the origin of 46% seafood if I knew it was 56% the seafood that I eat sustainable Less chemicals 10% Better quality fish 3% Better for the environment 3% Of those with a preference, 71% ‘‘ Fish from the wild has prefer a better taste and is going to be wild-caught natural as intended’’ love / has wild 71% like it WILD seen +47% is preferred menu penetration growth among those that tried since 2009 5:2 wild-caught seafood to farmed Top 2 consumer stated benefits of wild seafood

Wild-Caught 1. Healthier seafood = 2. Less Chemicals Tastes better

Wild + Alaska is the magic combination for Wild-Caught driving purchase seafood = More natural 6 out of 10 consumers are more likely to buy a grilled Alaska salmon salad, when it’s menued as Grilled wild Alaska salmon salad Alaska on the menu Mentioning “Alaska Seafood” Is Powerful on the menu drives home and Drives Sales that the restaurant cares about serving the best seafood

Impact of Alaska Seafood Logo on Restaurant Perceptions MENUING Alaska seaf00d tells consumers the dish is fresh, healthy, and great tasting The restaurant... Is proud to serve Alaska Seafood associations Alaska seafood 74%

Cares about the quality of food 70% 77% 76% 76% Is a good place to 62% 58% 57% get seafood 67% 53% Has high quality food 66%

Cares about offering healthy choices 65%

Healthy Makes me more likely Fresh Great Locally Easy to Certified Organic 64% taste sourced find sustainable to order seafood Believes in sustainable sourcing 61%

Makes me more likely to Top 2 return to that restaurant 61% Seafood Cares about the unaided consumer descriptors environment 57%

from Alaska of seafood from alaska Values buying local/domestic 54% is more appealing than any 1. Great other taste / seafood f l avo r origin 2. Fresh Consumers prefer Alaska seafood on the menu by a wide margin Adding ‘wild’ within the menu description of Alaska seafood increases its appeal even more!

Preferred Seafood Menu Item Name at Chain Restaurants

Pollock sandwich 31% 69% Alaska pollock sandwich

Atlantic salmon 32% 68% Alaska salmon

King crab legs 34% 66% Alaska king crab legs

Fresh halibut 37% 63% Fresh Alaska halibut

Grilled Alaska salmon salad 38% 62% Grilled wild Alaska salmon salad Atlantic cod sandwich 40% 60% Alaska cod sandwich ‘Alaska’ drives Fish and chips 43% 57% Alaska fish and chips

Whitefish sandwich 46% 54% Alaska pollock sandwich purchase

Grilled cod bowl 57% 43% Fried cod bowl 7 out of 10 consumers are more likely to order AN Alaska pollock sandwich believe Alaska vs. a Pollock sandwich 64% 61% Seafood logo =

of consumers Sustainable Sourcing

are more likely to order seafood when they see the Alaska Seafood logo Research Methodology Available Resources The Alaska Seafood Marketing Institute (ASMI) Conducted by Datassential in 2019, this online study has the tools and resources to make it easy for drew from 1,000 nationally representative consumers. you to build successful promotions and add All consumers were required to be weekly visitors of QSR, customer appeal to your menu. fast casual, or casual dining restaurants. Additional seafood trend information was pulled from Datassential’s Menu Trends and FLAVOR tracking tools.

• Chef and waitstaff training • Turnkey promotions • Educational materials • Photographs, videos and • Recipes artwork to customize • Consumer trends data your needs • Training in the selection, • Ready access to seafood handling and uses marketing consultants of all varieties of • Directory of Alaska wild Alaska seafood seafood suppliers • Menu concept development • Social media support

For more information: Please contact us at 800-478-2903 or visit www.alaskaseafood.org/foodservice

Alaska Seafood Marketing Institute • 800-478-2903 311 N. Franklin St., Suite 200, Juneau, AK 99801

©2020 ASMI #130-026