North American Tuna Market

Transcription

1 North American Tuna Market

2 U.S. Market Overview

3 Total Retail Seafood dollars have grown from $9.8 to $11.4 billion in the past five years. Fresh and Frozen account for a combined 80% of the sales while shelf stable seafood sales account for the balance Total Seafood Dollar Sales ($ in Millions) $12,000 $10,000 $8,000 $6,000 TTL $9.B TTL $10.3B $2,240 $2,308 TTL $10.8B TTL $11.1B TTL $11.4B $2,319 $2,289 $2,239 $3,659 $3,859 $4,147 $4,340 $4,575 $4,000 $2,000 $0 $3,940 $4,100 $4,295 $4,482 $4, Source: IRI Multi Outlets Frozen/Packaged Fresh Seafood Counter Shelf Stable Note: Fresh does not reflect Food Service/restaurants - $9.4B market in N. America 3

4 Fresh seafood generates $4.6 billion in sales annually. Salmon, Shrimp and Crab are the top three species Total Fresh Seafood Dollar Share By Species - $4.6B Source: IRI 4

5 Of the total fresh sales, Tuna accounts for $76 million which has steadily increased over the last four year period Total Fresh Tuna Dollar Sales ($ in Millions) $80.0 $75.0 $73.3 $76.4 $70.0 $65.3 $60.0 $57.0 $50.0 $ Total Fresh Tuna Source: IRI 5

6 Total frozen seafood sales delivered $4.5 billion during Shrimp represents almost one-half of the total category Total Frozen Seafood Dollar Share By Species - $4.5B Source: IRI 6

7 Sales of Frozen tuna have also increased over the last four years, generating $31.9 million last year Total Frozen Tuna Dollar Sales ($ in Millions) $35.0 $30.0 $27.8 $31.9 $25.0 $20.0 $15.0 $19.4 $14.9 $17.9 $ Total Frozen Tuna Source: IRI 7

8 Frozen Tuna represents a growth opportunity as only 1.5% or U.S. households are currently purchasing Frozen Tuna Household Purchasing Dynamics % Households Buying 1.5% Dollars Per Trip $10.44 Unit Sales Per Trip 1.3 Price Per Unit $8.26 Tuna In Basket Dollars Per Trip $ Tuna Not In Basket Dollars Per Trip $50.88 Source: IRI 8

9 Shelf Stable seafood accounted for $2.2 billion in sales during Tuna purchases represent three-quarters of the total category sales Total Shelf Stable Seafood Dollar Share By Species - $2.2B Source: IRI 9

10 Shelf Stable Tuna dollar sales, down 2.7% versus the prior year period, are flat compared to five years ago. Total Shelf Stable Tuna Dollar Sales ($ in Millions) $1,900 $1,800 $1,700 $1,635 $1,699 $1,714 $1,692 $1,645 $1,600 $1,500 $1, Shelf Stable Tuna Source: IRI 10

11 A total of 27.6 million EQ cases of shelf stable tuna were sold in 2015, down just 1% versus the prior year, but down 10% from Total Shelf Stable Tuna Volume (EQ Case Volume in Millions) Shelf Stable Tuna Source: IRI 11

12 StarKist is the leading brand of Tuna in the U.S. market, accounting for 43.3% and 40.5% of category dollars and volume, respectively. Bumble Bee ranks #2 with 28% of dollar sales and 25.6% of the volume Shelf Stable Tuna Dollar and Volume Share By Brand Dollar Share Volume Share Chicken of the Sea 13.3% Private Label 12.6% Other 2.8% Bumble Bee 28.0% Chicken of the Sea 15.4% Private Label 17.0% Other 1.5% Bumble Bee 25.6% Source: IRI StarKist 43.3% StarKist 40.5% 12

13 Light tuna is the largest segment within shelf stable tuna, contributing 44.3% of the dollars sold and almost 60% of the tonnage. Albacore, follows with 35.2% of dollar sales and almost 29% of volume sales. Bumble Bee is the leading brand of Albacore, while StarKist is the leading brand of Light tuna. Shelf Stable Tuna Dollar and Volume Share By Type Dollar Share Volume Share Pouch 15.5% Value Add 5.1% Albacore 35.2% Pouch 7.8% Value Add 17.0% Albacore 28.6% Source: IRI Light 44.3% Light 59.8% 13

14 Almost two-thirds of shelf stable tuna is sold in the traditional retail channel (62%). Walmart represents a quarter of the sales (24%), followed by Club stores (6%) Shelf Stable Tuna Dollar Sales By Channel Club 6.0% Drug 2.0% Military 1.0% Other 5.0% Walmart 24.0% Retail 62.0% Source: IRI 14

15 The total number of households that are purchasing canned tuna declined over the last 5 years. At the end of 2015, 67.8% of U.S. households were tuna purchasers Total Shelf Stable Tuna Household Penetration Source: IRI 15

16 The average consumers spends $4.23 for 3 cans during each buying trip, paying an average of $1.43 per unit Shelf Stable Tuna Household Purchasing Dynamics % Households Buying 67.8% Dollars Per Trip $4.23 Unit Sales Per Trip 3.0 Price Per Unit $1.43 Tuna In Basket Dollars Per Trip $89.98 Tuna Not In Basket Dollars Per Trip $40.84 Source: IRI 16

17 Despite the household declines, canned and pouch Tuna is positioned for growth Consumer Trends Favorable For Tuna Demographic trends support long term growth opportunities Aging population focused on health Convenience is a critical factor in product offerings Health awareness on the rise and greater interests in better for you products Increasing ethnic diversity with fish forward attitudes and behaviors Shelf Stable Tuna fits consumer needs Protein is hot today Healthy, nutritious and convenient Low in fat, calories and cholesterol High in Omega-3 EPA/DHA and excellent source of protein Linked to reduction in heart disease, Alzheimer s, strokes Easy to prepare Affordable go to source of lean protein 17

18 The leading U.S. brands continue to invest in efforts to drive their brand platform and engage consumers. A key push is also underway through the National Fisheries Institute, to capitalize on the latest Dietary Guidelines that highlight the importance of eating 2-3 servings of Seafood per week Situation Overview Dietary Guidelines for Americans were released in January 2016; positive with respect to fish, especially tuna New aspects of socioeconomic considerations, such as access and affordability, provide opportunity for continued engagement for 6 months Six month window to promote while DGA is still considered new Timing and content of FDA final advice continues to be uncertain Communications Objectives Educate HCPs and allied professionals about the DGA to encourage consumption of fish, especially tuna Strategic Approach Amplify DGA as most current recommendation for pregnant and nursing women, supported by Net Effect Report Arm HCPs and influencers with tools for discussion with patients 18

19 There are targeted initiatives underway to disseminate the new dietary guidelines and also increase awareness of a comprehensive report released by the U.S. Food and Drug Administration validating the incredible health benefits of seafood Leverage The Positive Science And Reach Key Targets Key Opinion Leaders RDs, MDs, Scientists Stakeholders Engagement & Accountability Consumers Pregnant/Nursing Moms Net Effects Report Medical Institutions & Associations Health Care Providers OBGYN, Peds, Nurses Media Traditional and Non-Traditional 19

20 Canada Market Overview

21 The Canadian shelf stable seafood market delivered $414 million in sales in 2015 representing a 10.6% increase versus 2010 Total Seafood Dollar Sales ($ in Thousands) $450,000 $400,000 $350,000 $300,000 $33,203 $46,546 TTL $374.4M TTL $414.1M $35,633 $48,285 $250,000 $200,000 $158,946 $178,482 $150,000 $100,000 $50,000 $0 $39,539 $50,854 $96,206 $100, Salmon Value Add Tuna Non Value Add Tuna Specialty Sardines Source: ACNielsen Homescan52 Weeks Ending Nov 14,

22 While total dollar sales have increased, volume is down 8.8% during the same time frame. Volume declines were posted in each segment with the exception of Value Added Tuna Total Seafood Volume Sales (EQ Cases in Thousands) $6,000 $5,000 $4, TTL 4,770 TTL 4, $3,000 2,573 2,415 $2,000 $1,000 $ , Salmon Value Add Tuna Non Value Add Tuna Specialty Sardines Source: ACNielsen Homescan52 Weeks Ending Nov 14,

23 Clover Leaf is the brand leader in the Canadian marketplace generating almost 48% of the total dollar sales. Private Label ranks #2 followed by Oceans Fisheries Shelf Stable Seafood Dollar Share By Brand Other 13.0% Private Label 16.2% Clover Leaf 47.6% Oceans Fisheries 13.0% Canfisco 10.2% Source: ACNielsen Homescan52 Weeks Ending Nov 14,

24 Tuna is the largest canned seafood segment driving 61.2% of the category volume, followed by Salmon (24%) and Sardines/Herring (9.4%). Among canned seafood buyers, more than 3 out of 4 consumers purchased tuna last year, while 45% purchased canned salmon Total Canned Seafood Development By Species 61.2 Share of Requirements Salmon Tuna Specialties Sardines & Herring % Seafood Buyers Purchasing Source: ACNielsen Homescan52 Weeks Ending Nov 14,

25 Within the Tuna segment, Skipjack represents two thirds of volume sales, followed by Albacore at 19% and value added tuna at 13% Shelf Stable Tuna Volume Share By Type Yellowfin 2.5% Value Added Tuna 13.0% Albacore 18.8% Skipjack 65.7% Source: ACNielsen Homescan52 Weeks Ending Nov 14,

26 The Grocery channel delivers 66% of sales, followed by Club Stores (15.5%) and Mass Merchandisers (10.5%) Mass Merch 10.5% Shelf Stable Tuna Volume Sales By Channel Drug/All Other 7.9% Club 15.5% Grocery 66.1% Source: ACNielsen Homescan52 Weeks Ending Nov 14,

27 The typical Canadian tuna buyers are likely to be older empty nesters, with above average income The Canadian Tuna Consumer THE TOTAL TUNA BUYER IS LIKELY TO BE: AVG DISTRIBUTION OF BUYERS Age % 1-2 member household 58% Couples (established/empty nest/seniors) 41% High Income $70k - $100k+ 45% No Kids 68% Source: ACNielsen Homescan52 Weeks Ending Nov 14,

28 Thank You And Enjoy The Conference!