Commissioned by:

Prepared by:

Seafood Industry & Consumer Study

Summary Report ODRP Advisory CommitteeJanuary 25, 2011

2

Two tracks of research were conducted. For the stakeholder study, we targeted 60-80 in-depth interviews among four different constituencies to provide a broad range of different perspectives and opinions. The consumer quantitative study was conducted among a nationally representative sample of seafood consumers, with Gulf Coast oversample.

Approach Overview

In-depth understanding of what drives

industry stakeholder

behavior

Fact-based conclusions regarding consumer

demand for Gulf Seafood

Stakeholder Interviews (Qualitative)

Consumer Interviews(Quantitative)

• Conducted by telephone November - January

• 80 interviews• Key stakeholder groups• One-on-one discussion• 30-60 minutes long

Linkage for 360º View

• Internet data collection in November/December by Lieberman World Wide

• Seafood consumers

• National base sample 1,000 • Gulf State oversample 1,000

Stakeholder Interviews (Qualitative Findings)

4

Methodology

► Data for this study was collected November 2010 through February 2011.

► It is important to keep in mind that one-on-one interviews, as part of the qualitative process, are conducted to provide greater depth of response by allowing a small number of qualified individuals to speak on a given topic.

► However, the acquisition of information by this technique is concerned more with the depth of understanding and should not be confused with the statistically reliable quantification of a large number of responses. Therefore, caution must be used in interpreting these results and projecting these results to a broader audience.

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Supply Chain Disruptions

Harvesting activity below pre-spill levels

► Harvesting areas affected and/or closed

► In some cases, product contaminated

► Some areas still impacted from previous Hurricanes

► Opening of harvesting season delayed to give crops more time to grow/reproduce

► Weak growth/ inconsistent quality (Partly due to oil, partly due to weather patterns)

► Freshwater diversions

► Vessel of Opportunity program

► Uncertainty among harvesters

The oil spill has had a significant negative impact across the entire seafood supply chain, disrupting supply and driving up prices, while overall consumer demand appears to be down.

Prices above pre-spill levels

Consumer demand below pre-spill levels

► Processors are affected by below normal harvesting and lack of demand

► With harvesting volume down, more buyers relying on available supply

► Price increases are widely reported by all stakeholder groups

► Costs for most types of seafood are up, some suggest even seafood not harvested in Gulf of Mexico

► Processors have to pay higher prices for product but can’t easily pass on costs to retail customers

► Some retailers still unable to obtain product, prices are too high, and consumers buy less seafood.

► Most retailers uncertain what’s causing lack of demand

► Many feel consumers are fearful of product . Some have stopped buying GOM seafood.

► Some blame higher prices amid weak economy.

► Higher costs are forcing some retailers to substitute product due to margin pressures.

► Availability of product continues to be an issue, especially for oysters.

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Albertsons Associated Grocers Piccadilly Brookshire Brothers Piggly Wiggly

Key Issue

• Market Manager• Alabama• Grocery store franchise• 150 Employees

• Price increases (Oysters and shrimp)

• Able to buy most species but oyster supply was interrupted

• Some degree of consumer concern, mostly oysters (temporarily stopped selling due to consumer concerns)

Business Impact at Retail (Qualitative Findings)Combination of issues attribute to decreased demandPrice, safety & availability together and independently contribute

• C-level Executive• Regional restaurant chain• 115 locations, mostly

Southeast

• Demand but not necessarily safety (overall economy in Gulf states, loss of tourism)

• Able to get product

• Safety concerns mostly an issue outside Gulf states

• Vice President• Buying organization for

220 independent grocers• Southeast footprint

• Price increases (mostly oysters and shrimp)

• Sell almost exclusively GOM seafood, no sourcing problem

• Consumers asked more questions but not seen a significant impact on purchase behavior (“People in the Gulf prefer it, will continue buying it”

• Divisional buyer for 170 stores in TX, LA, FL

• Formerly second largest U.S. grocery store chain

• Now part of SuperValue

• Supply – Unable to source shrimp from general supplier

• GOM seafood is not a significant part of overall business (more expensive than imports, generally not competitively priced)

• Director of Perishables • 100+ grocery stores• Predominantly rural

markets in East TX

• Safety perceptions, overall demand, and pricing

• Had stocked up on product immediately after oil spill but product is turning slowly

• Availability is a problem but there is less demand for it

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Uncertainty

Harvesters Processors Retail

► What will future harvesting seasons look like? Has the oil spill impacted fish stock?

► If I harvest in more distant waters, will I be successful?

► Is the product really safe?

► Where is the oil? Will I catch contaminated product?

► If I harvest product, will there be a market for it?

► Will I get a good price for my catch to justify the risk and operating expenses?

► Is this still a viable industry to participate in?

► Type ► Type

There remains a high degree of fear and uncertainty among many stakeholders and the industry is seen as vulnerable to permanent losses in market share and overall vitality.Uncertainty around the consumer is a key concern relative to demand – safety concerns persist.

► What are the reasons consumers are not buying?

► Will I be able to get product?

► What will it cost me to buy GOM seafood?

► Can I pass on costs to consumers?

► How can I remain profitable in a low margin business?

► Will the supply situation stabilize?

► What prices will we have to pay for product?

► Will consumers return to buying GOM seafood?

► Will my retail customers return? Buy product at higher prices?

► What will the demand situation be like next year?

► How much seafood should we buy and stock in our warehouse?

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Key Takeaways – Qualitative Research

► The oil spill has had a significant negative impact across the entire seafood supply chain, disrupting supply and driving up prices, while overall consumer demand is down.

► Smaller harvesters, processors, retailers and restaurants significantly impacted, with some going out of business.

► There remains a high degree of fear and uncertainty among many stakeholders and the industry is seen as vulnerable to permanent losses in market share and overall vitality.

► Industry participants think there is a significant consumer safety perception problem impacting demand.

► Stakeholders at all levels suggest that a seafood safety campaign is badly needed to restore consumer confidence.

Consumer Study(Quantitative Findings)

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Interview Content

• Consumption behaviors• Recent changes in consumption behaviors

and reasons• Likelihood to consume in the future• Reasons for change in consumption

• General food safety attitudes, perceptions, concerns

• Awareness of recent food safety issues • Place of origin – awareness and

importance

• Drilldown questions related to seafood and Gulf in particular

• Levels of concern• Changes in consumption (oil spill related)• Perceptions & Solutions

Consumption behaviors

Food Safety Attitudes

Gulf Coast Seafood Safety

Issues

• The study was designed so that purchase behavior questions where first asked in the context of “all proteins” to disguise intent.

• In addition to other proteins, various types of seafood were included to disguise types of seafood that might be more readily associated with the Gulf Coast harvesting region.

• Questions were asked for at-home preparation and out-of home consumption.

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Qualified respondents met the following criteria:

Age 18 or over

Primary or shared decision maker regarding food purchases for their household (including food purchases for at-home preparation and consumption and restaurant purchases)

Purchased at least one of the following types of seafood in the past 12 months:

•Shrimp•Crab•Oysters•Tilapia/Catfish/Freshwater Trout•Salmon/Tuna/Cod/Mahi Mahi/Swordfish•Snapper/Grouper/Mullet/Red Drum/Billfish

A total of 1,000 interviews were completed from a nationally representative sample of online respondents.

To ensure a sufficient sample size for state level analysis of targeted Gulf States, additional interviews were conducted. Following are the total number of interviews conducted in each of the Gulf states:

Data were weighted on age, income, gender and ethnicity to reflect 2000 U.S. Census demographic data.

Data were weighted at the state level for the five Gulf States and at a cumulative level for the other 45 states. The Gulf States data were weighted down to represent their proper proportion of the U.S. population.

Alabama 200

Florida 201

Louisiana 201

Mississippi 199

Texas 200

Methodology

Lieberman Research Worldwide conducted the quantitative consumer study. Data for this study was collected via online interviews between December 1st – 8th, 2010.

How have seafood purchase habits changed overall?

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Seafood consumers have cut back on home consumption of oysters more than they have cut back on any other protein, with about four in ten past 12 month purchasers indicating that they are buying fewer oysters compared to a year ago. Past 12 month seafood purchasers, both overall and in the Gulf States, have also cut back on other types of seafood more than they have cut back on other types of proteins (e.g. beef, pork and chicken).

Consumers Have Cut Back More On Seafood Than Any Other Type Of Protein

Consumption At Home Compared To A Year AgoBase: Past 12 Month Purchasers For Home

Oysters(n=295)(n=190)

-32 pts-34 pts

Crab(n=731)(n=419)

-22 pts-20 pts

Snapper/Grouper/Red Mullet/Billfish(n=431)(n=277)

-21 pts-18 pts

Tilapia/Catfish/Trout(n=1,053)

(n=636)-7 pts-2 pts

Shrimp(n=1,354)

(n=773)-8 pts-9 pts

Tuna/Salmon/Cod/Mahi Mahi/Swordfish (n=1,255)

(n=638)0 pts

-1 pts

Beef (n=1,706)

(n=951)-1 pts0 pts

Pork (n=1,525)

(n=860)-3 pts

+2 pts

Chicken(n=1,757)

(n=969)+19 pts+16 pts

5%

8%

7%

16%

14%

19%

14%

11%

26%

8%

10%

12%

21%

13%

21%

14%

13%

23%

37%

30%

28%

23%

22%

19%

15%

14%

7%

42%

30%

30%

23%

22%

22%

14%

11%

7%

Q1b We are interested in understanding whether you are eating the following items more or less compared to a year ago. During the past six months (May 2010-November 2010, did you buy the following foods to prepare and eat at home less often, with about the same frequency, or more often compared to the same time last year?

Less Often More Often

Total USGulf States

Difference Between Less Often And More Often

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Q3 You indicated that you are eating the following types of food less often this year compared to a year ago. Please tell us all of the reasons you are eating the following foods less often this year compared to a year ago..

Total US/ At Home (n=277) (n=197) (n=105) (n=215) (n=256) (n=112) (n=219) (n=206) (n=46)

Cost The cost has increased too much 39% 36% 27% 26% 33% 31% 23% 19% 21% Too expensive 53% 58% 33% 23% 44% 47% 27% 14% 12%Safety Not as safe as it used to be 13% 13% 25% 14% 7% 9% 12% 6% 6% Concerned about getting sick 9% 6% 28% 12% 8% 15% 12% 11% 13%Quality The quality is not as good as it used to be 11% 13% 15% 11% 14% 10% 13% 13% 13%Availability

Stores I visit no longer carry a good selection 10% 17% 16% 19% 19% 22% 3% 4% 4%

Reasons For Eating Type Of Seafood Less Often At Home

Shrimp Crab OystersTilapia/ Catfish/Trout

Tuna/ Salmon/

Cod/

Snapper/ Grouper/

Red Mullet/Billfish

Beef Pork Chicken

Gulf Coast/ At Home (n=276) (n=255) (n=168) (n=223) (n=246) (n=173) (n=251) (n=206) (n=138)

Cost The cost has increased too much 41% 38% 35% 27% 37% 46% 20% 16% 16% Too expensive 36% 55% 40% 23% 36% 51% 24% 19% 10%Safety Not as safe as it used to be 24% 14% 39% 17% 7% 10% 8% 7% 9% Concerned about getting sick 20% 7% 38% 14% 6% 11% 11% 9% 11%Quality The quality is not as good as it used to be 15% 15% 24% 18% 17% 22% 7% 7% 9%Availability

Stores I visit no longer carry a good selection 16% 12% 8% 7% 15% 21% 4% 1% 0%

Cost is attributed to the primary reason for decreased consumptionSafety is also a concern, especially when it comes to oysters.

Various Reasons Contribute to Declines

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Summary Thoughts (Purchase Behavior)

► Consumer demand for seafood has declined significantly, and at higher levels than any other type of protein.

► There are several reasons contributing to declines in demand. ► High cost/ increased cost is the biggest factor► Safety concerns and deteriorated quality perceptions also play a role

► Consumption of shrimp, crab and finfish is anticipated to increase over the next six months, but at a moderate level, and less so than the consumption of other types of protein.

To What Degree Is The Decline In Seafood Purchases Specifically Related to Safety Concerns?

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Extremely/somewhat concerned about safety of seafood from…

Total US Gulf States

Asia 55% 60%

Mexico/Latin America 53% 54%

Europe 39% 39%

Gulf Coast 30% 29%

Southeast Coast 11% 12%

Alaska/Canada 10% 11%

West Coast 9% 10%

Mid-Atlantic Coast 9% 9%

Northeast Coast 8% 8%

LEVEL OF CONCERN ABOUT THE SAFETY OF GULF COAST SEAFOOD

Level Of Concern About Gulf Coast Seafood Safety Compared To Other AreasBase: Total Seafood Consumers (n=1,812)

Q17 How concerned are you about your safety when eating seafood from the following areas?

Total Gulf States

(n=1,812) (n=1,001)

Extremely/Very concerned (net) 30% 29%

Extremely concerned 9% 10%

Somewhat concerned 21% 19%

A little concerned 31% 23%

Not at all concerned 39% 48%

Concerns About Gulf Coast Seafood Are Greater Than For Other Domestic Seafood, But Much Less Than Concerns About Imports

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28%35%

26%32%

24%31%

25%31%

11% 7% 11% 7% 12% 15% 11% 7%

6%7%

7%8%

8% 7%6%

8%

On average 17% of consumers are concerned enough to limit purchase.Gulf Coast residents are more inclined to believe that Gulf Coast seafood is safe. Concern about safety is slightly higher for oysters, especially among Gulf Coast residents.

Up to One in Five Consumers Avoid/Limit Buying GOM Seafood

Level Of Concern About Specific Types Of Gulf Coast SeafoodBase: Past 12 Month Purchasers For Home Or At A Restaurant

Q18 If you were buying the following types of seafood today that came from the Gulf Coast, how safe would you consider each of them?

Total US Gulf States Total US Gulf States Total US Gulf States Total US Gulf States(n=1638) (n=918) (n=1228) (n=710) (n=649) (n=413) (n=759) (n=491)

Shrimp Crab Oysters Finfish

Assume it is perfectly safe

Somewhat concerned and try to avoid buying it

Very concerned and won’t buy it

Somewhat/ Very Concerned 17% 14% 18% 15% 20% 22% 17% 15%

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Among consumers who have purchased seafood in the past 12 months, about one in ten have cut back or stopped buying particular types of seafood as a direct result of the oil spill in the Gulf. Declines in seafood purchases are similar between seafood consumers overall and consumers residing in the Gulf States.

About One in Ten Have Cut Back As A Direct Result Of The Oil Spill

Q20 How has your purchase of the following types of seafood changed as a direct result of the oil spill in the Gulf Coast? Please think about your changes in your behavior related only to the oil spill, not for any other reason.

10% 10% 9% 7%11% 13%

8% 8%

Total US (n=1,638)

Gulf States (n=918)

Total US (n=1,228)

Gulf States (n=710)

Total US (n=649)

Gulf States (n=413)

Total US (n=759)

Gulf States (n=491)

Shrimp Crab Oysters Finfish

Stopped Buying Or Buying Less Seafood Because Of Oil Spill – AidedBase: Past 12 Month Purchasers For Home Or At A Restaurant

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► Safety perceptions related directly to the oil spill have negatively affected a relatively small segment of seafood consumers.

► However, these are important consumers because they tend to be more frequent consumers of seafood.

► They are also more likely to be aware of where their food comes from and more likely to be aware of food safety issues in general.

► Seafood consumers who report cutting back on seafood purchases because of rising costs or other reasons represent about one-third of the market.

► Price-sensitive consumers tend to be more infrequent purchasers of seafood, but have intentions to purchase seafood more regularly in the future.

► Increased purchase frequency will likely depend on prices coming down, or their overall economic situation improving.

Summary Thoughts (Seafood Safety Regarding Gulf Coast Seafood)

What Can Be Done To Boost Consumer Confidence InGulf Coast Seafood?

22

The proportion of consumers aware of any recent food safety issues is noticeably higher among Gulf Coast residents compared to consumers overall. Among those consumers who are aware, twice as many Gulf Coast residents identify safety issues related to the contamination of seafood as a result of the oil spill in the Gulf Coast compared to consumers overall.

Top of Mind Awareness of the Oil Spill As a Potential Food Safety Concern Is Relatively Low

Awareness Of Food Safety And Seafood Safety Issues – UnaidedBase: Total Seafood Consumers

AWARE OF ANY RECENT FOOD SAFETY ISSUES(n=1,812)

Yes51%

No49%

TOP FIVE SPECIFIC FOOD SAFETY RELATED ISSUES RECALLED(Among those aware of recent food safety issues)

Eggs Recall/Salmonella

Meat Recall/e-coli

Spinach Recall

Safety issues related to contamination of seafood from the oil spill in the Gulf Coast

Issues related to other types of contamination of seafood (i.e. mercury)

41% 31%

13% 11%

11% 10%

8% 18%

8% 8%

Q9a Have you heard or read about any recent issues regarding the safety of any specific food products sold in the United States?Q9b What recent issues have your read or heard about lately with regard to food safety?

Total US(n=1,812)

Gulf States(n=1,001)

Gulf States (n= 1,001)

Yes 55%

No 45%

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The majority of seafood consumers, both in the Gulf Coast and in other regions, believe that the food they eat is safe and trust the FDA, other agencies and retailers to keep food safe. Gulf Coast residents are significantly more likely to make it a point to eat Gulf Coast seafood to help the economy than seafood consumers in other regions.

Most Seafood Consumers Trust That Authorities Are Doing A Good Job Of Ensuring Safety

Attitudes About Food SafetyBase: Total Seafood Consumers

Q16 Below are two pairs of statements about general attitudes. For each row below, please read the statements on both ends of the grid, and then indicate which statement you agree with more. If you agree with one much more than the other, choose the button closest to the statement. If you agree somewhat with both of them, choose the button closer to the statement you agree with more.

Trust retailers to provide safe food

I tend to believe that the food I eat is safe

Trust the FDA and other agencies to keep food safe

Make a point of eating Gulf Coast seafood to help the economy

Tired of being told food is unsafe – just want to eat what tastes good

The media is usually accurate

66%

65%

61%

45%

43%

37%

68%

61%

63%

63%

44%

34% Total US (n=1,812)

Gulf States (n=1,001)

Other RegionsEast Coast = 42%West Coast = 38%Central US = 43%

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Among those who search occasionally or regularly for food safety information, just over a third are searching more this year than last year for information related to food contamination, food recalls and food-borne diseases. Gulf Coast residents are significantly more likely than consumers in other areas to have increased their search for information related to food contamination.

About Half Of Consumers Regularly Search For Food Safety Information

Frequency Of Searching About Food Related InformationBase: Total Seafood Consumers

Nutritional Content (n=1,461)(n=815)

32%34%

Fat/Calorie Content (n=1,437)(n=808)

33%31%

Food Recalls (n=949)(n=553)

35%38%

Food Contamination (n=874)(n=497)

35%41%

Food-Borne Disease (n=862)(n=506)

38%31%

81%

79%

55%

52%

50%

82%

82%

59%

53%

54%

Total US (n=1,812)

Gulf States (n=1,001)

PERCENT SEARCHING OCCASIONALLY OR REGULARLY

PERCENT SEARCHING FOR INFORMATION MORE FREQUENTLY COMPARED TO A YEAR AGO

(Among Those Searching Occasionally Or Regularly)

Other RegionsEast Coast = 31%West Coast = 34%Central US = 35%

Q7 Thinking about the past six months (May 2010 – November 2010)how often have you looked for information regarding the topics below?Q8 Did you look for information on these topics less often, with about the same frequency or more often this year (May 2010 – November 2010) compared to the same time period a year ago (May 2009 – November 2009).

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Most Seafood Consumers Have Fairly Limited Knowledge Of Some Safety Testing Or Preventative Measures Occurring In The Gulf Coast

Familiarity With Seafood Safety Testing And Preventative MeasuresBase: Total Seafood Consumers

Q22 How familiar are you with the current testing methods and preventative measures used to ensure the safety of seafood that comes from the Gulf Coast?

Total Gulf States

(n=1,812) (n= 1,001)

Know a lot about testing methods/preventative measures 1% 2%

Know a little about testing methods/preventative measures 15% 20%

Heard about testing methods/preventative measures 50% 51%

Did not know about testing methods/preventative measures 34% 27%

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Among seafood consumers who are somewhat or extremely concerned about the safety of Gulf Coast seafood, having access to test results and increased testing by independent third parties would be most effective at boosting their confidence in the safety of Gulf Coast seafood.

Greater Access To Test Results And More Independent Testing Are Most Likely To Ease Consumers Fears

Top Five Measures For Boosting Confidence In The Safety Of Gulf Coast SeafoodBase: Consumers Who Are Concerned About The Safety Of Gulf Coast Seafood

Q21 What, if anything, can be done to help boost your confidence in the safety of seafood that comes from the Gulf Coast? Please select all the apply.

Make the test results more accessable to the public

Conduct more independent third-party testing (i.e. university or private organizations)

Reassurance of safety from medical experts

Conduct more seafood industry testing

Conduct tests using more stringent methods

62%

62%

51%

50%

50%

52%

55%

50%

47%

44%Total US (n=399)

Gulf States (n=212)

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Consumers are most trusting of safety information that comes from Federal agencies. Consumer groups and independent agencies also hold some clout among consumers overall and Gulf Coast residents.

Federal Agencies Are The Most Credible Source For Food Safety Information

Top Five Credible Sources For Food Safety InformationBase: Total Seafood Consumers

Q27 If you were seeking information regarding the safety of the seafood that comes from the Gulf Coast, which of the following sources would you trust the most to provide you with credible information? Please select the THREE resources you would trust the most.

Total US Gulf States

(n=1,812) (n=1,001)

Federal Agencies (FDA, EPA, etc.) 56% 50%

Consumer groups 41% 40%

Independent/third-party food inspection agencies 39% 40%

Local government agencies (Department of Marine Resources, Department of Environmental Quality, State Department of Health)

36% 38%

Universities/University researchers 36% 35%

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Consumers are paying most attention to the freshness and cost when selecting meat, poultry and seafood. A reassurance of safety and particular place of origin is more important when selecting seafood than when selecting meat or poultry products to prepare at home.

Freshness And Cost Are Most Important When Selecting Center-Of-Plate Foods

Important Factors When Selecting Meat, Poultry, Seafood For Home Preparation And Consumption – Total USBase: Past 12 Month Purchasers For Home

Freshness

Cost

Low in fat/lean

Easy to prepare

Can be prepared in a variety of ways

Color/appearance

Nutritious/Healthy

Reassurance of safety

Comes from particular place in the U.S.

Particular brand

Other

61%

58%

34%

31%

31%

28%

25%

20%

6%

4%

1%

70%

58%

19%

27%

17%

24%

35%

26%

20%

3%

1%

59%

55%

29%

31%

33%

20%

35%

20%

5%

13%

1%

Q4 Now, we would like you to think about what is important to you when buying meat, poultry and seafood ([to prepare and eat at home]/([to eat in a restaurant]). Please select the top THREE things that are most important to you when purchasing each of the following types of food ([to prepare at home]/[to eat at a restaurant]).

Meat(n=1,742)

Poultry(n=1,768)

Seafood(n=1,645)

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About half of seafood purchasers believe that shrimp, crab, oysters and finfish are better quality when they are harvested in the United States. The belief that U.S. seafood is better than imported seafood is even stronger among Gulf Coast residents.

Most Consumers Believe That The Quality Of U.S. Seafood Is Superior To The Quality Of Imported Seafood

Quality Of U.S. Seafood Compared To The Quality Of Import SeafoodBase: Past 12 Month Purchasers For Home Or At A Restaurant

Q6 Now, we would like you to compare the quality of U.S. foods to the quality of imported foods for the types of foods listed below. Please select the answer that best fits your opinion about the quality of U.S. foods vs. the quality of imported foods.

51%64%

55% 61% 58%69%

51%65%

18% 13% 14% 12% 14% 14% 18% 13%

6%7% 6% 7% 6% 4%

6%6%

Total US(n=1,704)

Gulf States(n=956)

Total US(n=1,704)

Gulf States(n=956)

Total US(n=1,704)

Gulf States(n=956)

Total US(n=1,704)

Gulf States(n=956)

Shrimp Crab Oysters Finfish

The quality of US food is better than the quality of imported food

There is no difference in quality between U.S. food and imported food

The quality of imported food is much better than the quality of U.S. food

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Generally, the source of seafood is more commonly known when purchasing for home preparation and consumption. Recent seafood purchasers, however, are more likely to know the source of oysters than they are to know the source of any other type of seafood when purchasing for home preparation and restaurant consumption.

Consumers Are More Likely To Know The Source Of Their Seafood When Purchasing For Home Use

How Often Know Where Seafood Comes FromBase: Past 12 Month Purchasers For Home Or At A Restaurant – Total US

Q10 How often do you know the source (where it originated- such as locally grown, Alaska, West Coast, East Coast, etc.) when buying the following types of foods to prepare and eat at home?Q11 How often do you know the source (where it originated- such as locally grown, Alaska, West Coast, East Coast, etc.) when ordering the following types of foods at a restaurant?

35%

13%

46%

22%

55%

34% 33%20%

37%62%

29%

51%

25%

40% 36%

51%

At Home Restaurant At Home Restaurant At Home Restaurant At Home Restaurant(n=1,354) (n=1,521) (n=731) (n=1,105) (n=295) (n=573) (n=431) (n=658)

Shrimp Crab Oysters Finfish

Always/Usually knows source

Rarely/Never know source

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Overall, nearly three-quarters of consumers can identify the source of shrimp. Half of consumers identify the Gulf Coast as a source for shrimp, and over one-third identify the Gulf Coast as harvesting the best quality shrimp. Most consumers can also identify a source for crab and oysters, but the Gulf Coast is less associated with these types of seafood than with shrimp. The majority of seafood consumers cannot identify a source of finfish.

Shellfish, Specifically Shrimp, Is Most Identified With The Gulf Coast

52%

38%32%

28%24%

15% 13% 11% 9% 7% 7%

38%

8%

19% 19% 17%10% 9% 9%

5% 6% 6%

Shrimp Crab Oysters Snapper* Grouper* Mullet* Red Drum* Amberjack* Billf ish* Spotted Sea Trout*

Cobia*

Percent of consumers who associate type of seafood with the Gulf Coast

Percent of consumers who believe that the best quality of a type of seafood comes from the Gulf Coast* Based to past 12 month purchasers of finfishQ12 Please tell us, to the best of your knowledge, where each of the following types of seafood sold in the United States comes from (select all regions that apply).Q15 Now, for each type of seafood listed below, please tell us in which one region the best quality if found. Please select only one region of each type of seafood listed below.

Can Identify Source

74% 80% 77% 60% 52% 34% 29% 26% 24% 34% 19%

Association of Types of Seafood With Gulf Coast Origin & Perception of Gulf Coast Seafood QualityBase: Past 12 Month Purchasers For Home Or At A Restaurant – Total US

(n=1638) (n=1228) (n=649) (n=759) (n=759) (n=759) (n=759) (n=759) (n=759) (n=759) (n=759)

32

Summary Thoughts

► The supply chain is still healing► There is still a supply/demand/pricing disruption and much uncertainty within the

supply chain relative to the consumer.► The industry is in need of a rally point to drive demand

► Overall, consumer safety issues related to the DWH spill are waning.► Safety is a table-stake issue for food and will always be an important message point.► However, negative safety perceptions of GOM product is significantly higher than

other U.S. regions – this is a long-term problem fixable only by time (and communications).

► The consumer ‘problem’ is more in relation to the price/value equation► Consumers generally trust retailers and restaurants to provide safe/quality food. ► Price is the dominant reason consumers are cutting back (with exception of oysters)► Freshness and cost are more important decision factors for buying seafood.

► There is a significant opportunity to differentiate GOM product► Most consumers believe that U.S. seafood is superior to the quality of imports.► Except for shrimp, the majority of seafood consumers outside the Gulf Coast don’t

perceive the area to be the source for best quality seafood.

► Messages that most resonate focus on freshness, quality and heritage► Messages that address safety head-on could cause doubt► This message is best conveyed in more targeted communications, available to those

who will seek it (heavy seafood users).

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