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Riding changing currents: How aquaculture fits in emerging
consumer markets
NC Aquaculture Development Conference
Hilton Garden Inn, New Bern
Debbie Hamrick, NC Farm Bureau, Federation
Work on Your Business
• Think about the business you’re in, not be “in” it
• The broader picture
• Frames to view what’s happening today?
• Urbanization, Demographics
• Trends in Food, Outside Influences
• Technology, Entrepreneurial Disruption
Most Important Points
• External factors affect your business; You have no control
• Be creative…work around, over
• Your customers are in the city: Embrace it
• Gen Y is changing everything: Quickly
• Many external forces are shaping food demand
• Be smart about how you position yourself in the market
• Your product that goes into retail channels is marketed to serious multi-channel shoppers
VIEW FROM ANDROMEDA GALAXY
…..a.k.a. stuff out of your control
Where we are
Billions of People
World Population Growth
Now 7.2 Billion by 2050 9 Billion
Fish
3 billion people +
middle class = Meat=Livestock
Corn/Soy consumption
India
1.2
billion
17%
China
1.3
billion
18%
BIG PICTURE: CITIES = CUSTOMERS
Big Picture: Urbanization
Just 17% of US population is Rural
77% Millenials want to live in the urban core
.
What does Urbanization mean? The Great Divide
The Atlantic Red State/Blue City Electoral Votes 2012
Proposition 2 vote
California (‘08) Standards for
Confining Farm Animals
What does urbanization mean?
DEMOGRAPHICS/ GENERATION CHANGE
Generation Y will change everything
…just like the Baby Boomers did
Population Millions
Millenials 1981-2000
• By 2020 50% of US retail spending
• Connect to something bigger than they are
• VERY educated, wait for YEMMie
• Amenity rich locations (urban areas/cities)
• Income/spending surge that Boomers had?
Baby Boomers 1946-1994
• Lifestyle preservation
• Continue to be force for 10+ years
• Drove fitness craze, now food=health & longevity
• Environment, Community: more interested in Local
• YEEPIEs
50% say are foodies; 60% these eat Fast Food 1x/wk
By Warren Solochek, NPD Group
National Fisheries Institute Conference
TRENDS IN THE BUSINESS OF FOOD
Food Market
• less income required for food, leaves more for fun
• Food@Home down long run, up recently
• SNAP increased from 4.5% in 2000 to 14.7% of food@home
$ Dollars
Big Trends in Food
• Increase in Fresh Food
• Value, but Value ≠ Price
• Fresh, Taste, Healthy Ingredients, Local, Convenience, Natural/Organic, Fair Trade, Dietary Needs, Sustainable, GMO free • (in that order)
Where we Shop
MultiOutlet Shopping
• 3% Americans visit 1 or 2 retail channels;
76% visit greater than 5 outlets
• Grocery Stores: 50% grocery sales
• 25% US grocery Wal*Mart
OUTSIDE IN: NON-AG INFLUENCING AG
Outside in: Policy Influencers
4000+ events
in 50
states
+Bonus
Philanthrocapitalism
Buffet, Gates,
Bloomberg
Meatless Monday
• 2003 @ Johns Hopkins School Public Health
• Health initiative:
• Reduce saturated fat by 15%=1 day/week
• --18% Americans say they participate
• --50% Americans aware
• --reduce BMI 5%, save $21 billion
• Why do it? • Poor: Health
• Wealthy: Environment
• HSUS: Meatless Monday = 1.4 billion fewer farm animals
Eat Sunshine
Food e-vangelists
• About ¼ global population
• Seek to convert others (not activists)
• Values trump price to degree
• Digital natives, want to know all
Consumer as CEO
TECHNOLOGY WWFFD? What would Fred Flintstone do?
In 60 seconds online in 2013 Fast Company
Facebook 250 Billion photographs
It’s affecting how we cook • 1/3 online cooks use their smartphones for recipes
• All Recipe, 15 billion recipes
• No. 1 Search: Chicken
It’s affecting how we eat
Four Square
500K restaurants 43+million menu items
Outside in: Change.org 18 countries
185 staff
Outside in Blogosphere
ENTREPRENEURIAL DISRUPTION
Line from Amazon commercial:
“What was wildly
impractical is now
completely normal. And
normal just begs to be
messed with.” --Bezos
Seattle, Los Angeles,
San Francisco
Disruptive Urban Ag Entrepreneurs
FarmedHere: the freshest, healthiest and the most local greens in Chicago. Environmentally sustainable, socially wholesome, economically viable: we make it happen. Jolanta Hardej
Ben Flanner 108,000’² in Brooklyn/Queens Diversified income: wholesale sales CSA (waiting list) consulting tours/events sauce/honey
Using Tech to disrupt
•Kickstarter
• Square
Open Source HACCP Plan
The Farmery Raleigh, NC
Now offering
Financing
Disruptive ideas, the last mile The only two links in the distribution
chain that are absolutely
necessary are the producer and the
consumer, everything else is
up for grabs, Adrian Moerman
"There's this wave of entrepreneurship and creativity happening in the food world, and Good Eggs is all about bringing that high-quality production right to your door," said CEO Rob Spiro, who co-founded the startup after he sold his last company, a social search service called Aardvark, to Google Inc. for $50 million in 2010.
Summary
• External factors affect your business
• Your customers are in the city: Embrace it
• Gen Y is changing everything: Quickly
• Many external forces are shaping food demand AND influencing how you can operate
• Be smart about how you position yourself in the market : Your product that goes into retail channels is marketed to serious multi-channel shoppers
You’ve got an edge they’ll never have:
Made in the USA
Contact information:
Debbie Hamrick
NC Farm Bureau Federation
Director, Specialty Crops
5301 Glenwood Avenue
Raleigh, NC 27611
Tel: 919-334-2977 (direct)
Cell: 919-302-9538