recent developments in marketing of fish

Recent Developments in the

Branding & Marketing of fish products

OECD/FAO

Roundtable on Eco-Labelling & Certification in Fisheries

The Hague

22nd -23rd, April 2009

© Birds Eye Iglo1

Peter Hajipieris

Birds Eye Iglo - UK & Europe

Director of Sustainability & External Affairs

Contents

1. Who is Birds Eye Iglo?

2. Marketing of Fish – some basics

3. Communicating Sustainability - complex

4. Going Forward – some opportunities

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5. Summary

Who is Birds Eye Iglo?Who is Birds Eye Iglo?

© Birds Eye Iglo3

Leading European frozen food business

� # 1 frozen food company in Europe

� €1.3bn sales

� Household brands

� UK, Germany, Austria, France, Belgium, Netherlands, Portugal,

Hungary, Romania, Russia, Turkey

� Fish, Vegetables, Poultry, Red Meat, Ready Meals

© Birds Eye Iglo4

� Fish, Vegetables, Poultry, Red Meat, Ready Meals

World-Class fully integrated supply chain

� 3 world class facilities

�UK x1 • Germany x2

�One of largest frozen fish

factories in the world in

Bremerhaven, Germany

© Birds Eye Iglo5

Bremerhaven, Germany

Birds Eye Iglo Market Share in Fish & Vegetables

Category Leader in local markets

Fish Veg

DE

UK

Fish Veg

19%

24%

#1#1

#1#1

#1#1

39%

24%#1#1

© Birds Eye Iglo6

AT 68%

#1#1 #1#1

81%

Birds Eye Iglo Sustainability Workstreams

� Climate Change

� Sustainable Sourcing� Sustainable Sourcing

� Ethical Sourcing

� Packaging & Waste

� Water Use

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� Transport Efficiency

Birds Eye Iglo has been instrumental in championing

Sustainable Fisheries Development

Fisheries Sustainability – our Role

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� Unilever/Birds Eye Iglo

& WWF founded the MSC

� Sustainable Fisheries Development

� Fisheries Improvement Partnerships

� MSC Certified Fisheries Programmes

� Production � Retail

Marketing of Fish Products

F.. some basics

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Branding & Marketing of Fish Products

� Reflects consumer culture and product life cycles

� Signals a difference in Quality, ingredients or recipe� Signals a difference in Quality, ingredients or recipe

� Signals a difference in price points

� On-Pack Messaging e.g. nutrition, origin

� Single Indicator social or responsibility dimensions

e.g. ‘Sustainable’ Fishery Status

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e.g. ‘Sustainable’ Fishery Status

‘Responsible’ Fish Farming practice

Development Cycle is Culture & Market Dependent

e.g. Food Safety,

Sustainable Fisheries Management,

Responsible Farming

Global

Change

International

Fisheries

Change

National

Fisheries

Change

Industry

Centric

© Birds Eye Iglo11

Time/Progress

Communicating product states is complex

Icing of Fish

Time Time Time Time ---- IllustrativeIllustrativeIllustrativeIllustrative

Freezing of Fish

Hazard Analysis

Quality - Freshness

Modified Air Packaging

Food Safety Typical Fish Industry

Standards Development

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� Fish starts to deteriorate the moment it is caught

� Keeping it in a chiller or on ice, slows the deterioration

� But freezing effectively ‘stops’ it

e.g. Classic Frozen Fish vs Fresh Fish - science

� But freezing effectively ‘stops’ it

Frozen

Qu

ali

ty

© Birds Eye Iglo1313

On Ice

Chiller/Fridge

Qu

ali

ty

Time

Example – not easy on pack


“Fresh fish

Example – not easy on pack

decays by

the second”

“Freezing

stops the

© Birds Eye Iglo15

stops the

clock”

Communicating the benefits of Frozen Fish

Birds Eye Sponsorship

via media communications

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Communicating sustainability

F. far more complex

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We know Fisheries Management Challenges

World Fisheries ProductionWorld Fisheries Production

EU fisheries rated

at 82% ‘Overexploited’

Aquaculture viable but irresponsible

practices have damaged perceptions

• IUU Estimates: <>25%

• World Discards: <>8%

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� Environmental Risks

� Food Resource Risk

� Socio-Economic Risks

� Environmental Impact


Lack of international

standards alignment

Great efforts being made to tackle Governance


� Socio-Economic Risksstandards alignment

Evolution of a

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Evolution of a

Multitude of

Stakeholder Efforts

Sustainability challenges now more visible

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Current ‘Change Phase’ of Fish Industry

Icing of Fish

Time Time Time Time ---- IllustrativeIllustrativeIllustrativeIllustrative

Freezing of Fish

Hazard Analysis HACCP

Quality - Freshness

Modified Air Packaging

Food Safety

Responsible Farming

Global

Change

International

Fisheries

Change

National

Fisheries

Change

Industry

Centric

© Birds Eye Iglo21

Eco-Labelling

Sustainability

Responsible Farming

Traceability NowNow

1. Price

2009

Today, consumer price sensitivity is widespread

1. Price

2. Best Before date

3. Freshness

4. Physical appearance

5. Food Safety

ConsumerConsumer

FeedbackFeedback

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6. Climate Change

7. Sustainability

Omnibus - seafood product consumer insights 2009

Environmental > Economic > Social

Environmental Focus is on

ecological or

SOCIAL

Economics

ecological or

environmental

based

management

of food

production

© Birds Eye Iglo23

But Economics

must be right as

well to deliver

social gains

Fish Ecolabel explosion well intended - confusing

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Environmental Labels exist in other industries

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“Over 75% of the

worlds fisheries are

“25% of the worlds

fisheries are

And confusion is evident in communication

worlds fisheries are

overexploited”

fisheries are

overexploited”

© Birds Eye Iglo26

Some eNGO Claims UN FAO Data

1. Industry Change - dynamic

(since last OECD Challenges of Fisheries Globalisation Conference, 2007)

Example Change or Action

EU – IUU Reg’s Regulatory change to assist fight against IUU challenges

Ecolabel Misuse Examples where Ecolabels misrepresented for Quality

FIP Model Fishery Improvement Model now adopted by new NGO’s


FIP Model

to drive change or support businesses e.g. SFP

Example Change or Initiative

Established in markets globally – most widely adopted

(since last OECD Challenges of Fisheries Globalisation Conference, 2007)

2. Industry Change - dynamic

MSC Established in markets globally – most widely adopted

wild-capture certification scheme – management tool

NGO ‘Traffic Light’

Fish Lists

Designed to alert consumers to more sustainability

choices - not well received by market

Supermarket

Surveys

League tables showing ratings based on perceived

‘sustainability performance’


Surveys ‘sustainability performance’

(“UK Consumers will only eat Cod Fish Fingers”)

e.g. Birds Eye decided to relieve pressure on Cod

F.so Birds Eye tried Hoki

© Birds Eye Iglo29

Fand Hoki did not work X

� ‘Omega 3 Fish Fingers’ biggest branded food launch

in sustainability arena in last 10 years

Fbut Alaskan Pollock worked

in sustainability arena in last 10 years

� Relieved pressure on Cod

� However, examples like this are rare

© Birds Eye Iglo30

Going Forward

FOpportunities


Looking at some Industry Opportunities

Aspect Industry Opportunity

1. Governance � Public & Private Frameworks & Partnerships can work

� Providing the agreed outputs are clear at the start

2. Communication � Align terminology for Fisheries Sustainability

� FAO fisheries rating descriptors liable to confusion

3. Incentivise

Transitional

Fisheries

� We should reward positive change

� ‘Abandonment’ allows poor practitioners to win

whilst society loses


Fisheries whilst society loses

� Developing countries needs are relevant to debate

4. Certification

Alignment

� Wild not the same as Aquaculture – so clarify the

principles and criteria for standardisation

1%Recovering

RISK

FAO ‘Exploitation’ terminology not metric – open to misuse

7%

17%

52%

20%

Fully exploited

Overexploited

Depleted

Moderately

exploited

© Birds Eye Iglo

3%

0% 10% 20% 30% 40% 50%

Underexploited

exploited

Too many ‘Ecolabels’ - complex

� Market confusion

� Complex to communicate

� Duplication of supply chain costs

� Inter-operability of standards weak

� Industry resources not focussed

� Standards misalignment

© Birds Eye Iglo34

� Standards misalignment

� Audit process misalignment

� Incentivisation process is misaligned

Aligning International Fish Certification

suggested ‘Wish list’ for Fish Certification Schemes

1. Does it operate to internationally agreed or harmonised reference?’’

2. Standards Inter-operability – aligns to principles of standardisation2. Standards Inter-operability – aligns to principles of standardisation

3. Certification process e.g. EN450011 / ISO65 / ISEAL compliant ?

4. Governance & Transparency of operating Management Board

5. Credibility of Issuing Organisation (gained from above)

6. Ease of use by industry – simple language


6. Ease of use by industry – simple language

7. Affordability - Cost Structure incentivises market to adopt standard

8. Continuous Business Improvement Process is inbuilt

9. Label Declarations consider ISO14020 aspects

SummaryF..


Market will ‘Choice Edit’ Ecolabel noise..

Consumers

cannot

Process

‘Ecolabel

Noise’

Industry Dilemma NowIndustry Dilemma NowConsumers

want clarity

from Brands


Noise’

© Birds Eye Iglo

� Better & simpler design of user frameworks

We can improve industry chances of success by:

� Align incentives

� Align standards

� Align audit processes

� Honest, transparent scheme claims

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� Honest, transparent scheme claims

Finally a reminder F..

Fish is a wonderful, nutritious, fun food!


Fish is a wonderful, nutritious food and fun!

Birds Eye Salmon Fish Fingers TV advert


recent developments in marketing of fish

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