nephrops - the major british fishery

Nephrops - The major British fisherySupply, demand and markets

Tania GrossMarket Research ExecutiveSea Fish Industry Authority

Agenda

1 A few key figures

2 A duplicated demand: one product becomes two2.1 Scampi2.2 Langoustines

3 What the industry thinks

1.The Major British Fishery

Landings28,300 t.

Home Market13,500 t.

Export14,800 t.

Imports650t.

France5,500 t.

Spain5,870 t.

Italy2,090 t.

Retail5,200 t.

Foodservice8,300 t.

LANGOUSTINES

SCAMPI


Quotas by country, 2002

UK

France

Ireland

Germany

Denmark

HollandPortugal

BelgiumSweden

Spain

31, 300 t.

Source: European Commission


010203040506070

£ M

illio

n

Nephro

psHad

dock

CodM

onk

Scallo

psCra

bW

hiting

Mac

kerel

Lobste

rSole

Scotland Rest UK

Landings in the UK, Defra 2000 figures

The highest value species to be landed in Scotland,and in the UK as a whole

1.The Major Scottish Fishery

Landings in Scotland, Defra 2000 figures

0

5

10

15

20

25

Ton

nes

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Tails Whole

Landings of tails versus whole in Scotland

Agenda

1 A few key figures

2 A duplicated demand: one product becomes two2.1 Scampi are for the UK!2.2 Langoustines are for exporting!


2.1 The UK and scampi

• 5th most popular frozen ‘species’ (after cod, prawns, haddock and salmon) with volume 14% higher than last year (retail) and 5th/6th most popular species in foodservice.

• Scampi accounts for 12% of the retail shellfish market (worth £41.4 million) and for 36% of the foodservice shellfish market (£41.2 million).

* Fresh and Frozen

Volume Share

Foodservice61%

Retail39%

0500

100015002000250030003500400045005000

Tonn

es

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Retail volume trends

2.1 Purchasing behaviour retailFrozen scampi growing in retail

Frozen Scampi 2000 2001 % Change

Expenditure (£ '000s) 32876 35123 +7%Volume (Tonnes) 3630 4146 +14%

Penetration (% households buying) 15.9 17.5 +10%Frequency (times per year) 2.4 2.6 5%

Trip spend 3.5 3.21 -8%Trip Volume 0.4 0.4 -2%

Price (£s per Kg) 9.06 8.47 -6%

Scampi represents about 5% of all frozen fish

!

Source: TNS Superpanel

2.1 Demographic profile of Scampi


05

10152025303540

% S

hare

1 M

ember

HHs 2

Mem

ber HHs

3 M

ember

HHs 4

Mem

ber HHs

5+ M

ember

HHs

Total frozen fish and shellfish Scampi

Mainly 2-member households and families Number of people in household

2.1 Demographic profile of Scampi


05

101520253035

% sh

are

Hwife

Age

d und

er 27

H

wife A

ged 2

7-34

Hwife

Age

d 35-4

4 H

wife ag

ed 45

-64

Hwife

Age

d 65+

Total frozen fish and shellfish Scampi

Scampi profile younger than that of all frozen fishAge of housewife

2.1 In-home usage of Scampi

Source: TNS Family Food Panel

02468

10121416

% o

f all

scam

pi o

ccas

ions

CHILD 0-

5 CHIL

D 6-10

CHILD 11

-16

MALE 17

-24

MALE 25

-34

MALE 35

-44

MALE 45

-64

MALE 65

+

FEM

ALE 17-24

FEM

ALE 25-34

FEM

ALE 35-44

FEM

ALE 45-64

FEM

ALE 65+

Scampi consumer profile



No. of people present

05

1015202530354045

1 2 3 4 5+

%

Who is present?

01020304050607080

ADULTS ONLY BOTH

%

Who is eating?

0

20

40

60

80

100

ADULTS ONLY CHILDREN ONLY BOTH

%

2.1 Cross-over between fresh and frozen

Fresh and Frozen

7%Fresh only

7%

Frozen only86%

The need for a convenient product?


Around 9 in 10 shoppers only bought frozen scampi last year



0

1

2

3

4

5

6

7

Summer

/Autu

mn '98

Wint

er/Spri

ng '9

8

Summer

/Autu

mn '99

Wint

er/Spri

ng '9

9

Summer

/Autu

mn '00

Wint

er/Spri

ng '0

0

Summer

/Autu

mn '01

No.

of o

ccas

ions

(mill

ions

)

BAKED FRIED

Changes in cooking methods

2.1 Consumer Attitudes

• Some degree of vagueness• what exactly is it?• Some suspicion of it being ‘reconstituted’• Quality becoming more important

Labelling?

Positioning?

Impulse?• Taste, flavour, texture is the appeal

• Image has changed• used to be considered upmarket, now more

‘casual’(out-of-home)• now more of an everyday, frozen convenience product

(in-home)

2.1 The UK and scampi - Key points

• Convenience is key• Squeamishness• Familiarity / routine• Busy lifestyles

• But what about aspirations….?– Morrisons and Tesco’s sell whole langoustines!

Agenda

1 A few key figures



2.2 The export market for langoustines

Total UK langoustines exports by country, 2001

Ireland4%

Italy14%

Others3%

Spain41%

France38%

Volume Share

Source: UK Customs and Excise


Volume trends in exports of langoustines

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1995 1996 1997 1998 1999 2000 2001

Ton

nes

SPAIN

FRANCE

ITALY

OTHERS



Top 3 export markets for langoustines, 2001

0

1000

2000

3000

4000

5000

6000

7000

Spain France Italy

Ton

nes

FreshFrozen


2.2 The French export market for langoustines

How much is consumed?• 9,500 t. imported in 2000 (mostly fresh)• 6,100 t. caught• Little exported, so about 15,000 t. consumed

Where?• Out-of-home 1,400 tonnes (fresh + frozen)• In-home 5,000 tonnes (fresh only)

Source: Ofimer / Secodip


0

200

400

600

800

1000

1200

Ton

nes

FreshFrozen

Out-of-home Sector

Whole Tails Cost sector

In home Sector

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1999 2000 2001

Tonn

es a

nd F

F m

illio

ns

72.0

72.5

73.0

73.5

74.0

74.5

75.0

75.5

76.0

76.5

77.0

Pric

e (F

F/kg

)

Volume Value Price



Who?8% of French households purchase fresh langoustineOn the west coastRetired, well-off core consumer

When?Summer and Christmas


2.2 The Italian export market for langoustines

How much is consumed?• 11,000 t. imported in 2000 (mostly frozen)• 2,500 t. caught• Little exported, so about 13,500 t. consumed

Where?• In-home Estimated at 8,000 t. (fresh)• Out-of-home Estimated at 4,500 t.

Source: Europanel


6500

7000

7500

8000

8500

9000

Tonn

es

1999 2000 2001

In-Home fresh langoustine consumption

Source: Europanel

Regional split of consumptionNorth West

10%

North East4%

Centre14%

South + Islands72%


Who?15% of Italian households buy fresh langoustinesOn average they buy it about 3.8 times per year

0

10

20

30

40

50

60

70

Tonn

es

Singles 2 member 3-4 member >5 member


0

5

10

15

20

25

30

Tonn

es

<34 '35-44 '45-54 '55-64 >64


Source: Europanel

2.2 The Spanish export market for langoustines

How much is consumed?• 8,500 t. imported in 2000 (mostly frozen)• 1,500 t. caught• Little exported, so about 9,500 t. consumed

Where?• Mercabarna sales higher than Mercamadrid but other

channels of trade are developing

• Study from 2000 suggest opportunities in the retail trade


STRENGTHPart of culinary tradition

THREATCompetition from otherseafood (prawns)

OPPORTUNITYAdded value products

WEAKNESS Ageing of target consumersFragile product

2. Demand side - key points

• Strong dichotomy of the product

• Long term trends – Is the British consumer becoming more

adventurous?– Are foreign markets turning to convenience?

• Let’s ask the industry!

Agenda

1 A few key figures



3. What does the industry think?

• Spoke to 7 big processors / catchers and asked them:

– Trends according to them?– Issues?– Opportunities?– Will patterns of consumption change?

3. What are the key trends in this market?

• Clear segmentation of the markets

• Growth in the UK coming from retail

• Quality becoming more important in the marketing of the product. In recent years, clear move from reformed to whole tail.

• Growth through adding value: emphasis on NPD for scampi

3. Issues?

Supply issues:• Quotas - limited natural resource• Necessity to regulate supply • Scottish weather !• Fluctuations in exchange rates

Product issues:• Competition from substitute products• Food scares (but more likely to affect molluscs)• No organic classification

3. Opportunities?Scampi market:• Add value

– Premium – NPD (new flavours, coating, cooking methods)– Chilled offering– Labelling required

• Revise positioning– Boost awareness (low penetration)– ‘Eating-out experience’ at home– Snacky eating?

Langoustine exports:

• Market knowledge

• Building relationships

• Seasonal peaks

3. Opportunities?

3. Will things change?

• There seems to be an interesting trend at present – British consumers getting more adventurous?– Export markets being attracted to convenience?

• Opportunities for langoustines in the UK?

• Opinions are divided in the trade!

Maybe in the longer term...?

Thank you

nephrops - the major british fishery

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