The Lobster Council of Canada has partnered with Argyle Communications to develop a generic marketing plan which aims to further enhance the image of Canadian lobster with the message: “The best lobster in the world comes from Canada.” Marketing lobster under the Canadian banner is important because sales of both frozen and live products sourced specifically from the nation’s suppliers are growing dramatically in China, Hong Kong, and South Korea, where the Canadian name and maple leaf symbol are synonymous with high quality and trustworthiness.
Geoff Irvine, executive director of the Lobster Council of Canada, is pleased to report that the enhanced image of Canadian brand lobster among buyers in Asia is translating to rising exports that growing market.Data shows that exports to China have grown over 400% in the past five years. Markets in East Asia “value Canada’s rigorous food safety standards, our leading work on traceability and sustainability, and the image of Canadians as trustworthy people,” said Geoff Irvine, executive director of the Lobster Council of Canada. “The fact that Canadian lobster is one of the purest forms of wild sourced protein that tastes great and is associated with celebration is additional equity in the Canada brand.”
The China market is now second only to the USA as a destination for Canadian lobster. Ranking third through tenth in descending order, respectively, are: Japan, Hong Kong, Belgium, South Korea, France, Vietnam, United Kingdom and the Netherlands.
Statistics Canada recently reported that the total value of Canadian lobster exported in 2014 was $1.525 billion, up 32% over the previous year. Frozen tails and whole cooked/raw product was the leader of the pack, up 44% in value and 28% in volume. Live product gains were posted as +30% in value and +19% in volume.
So it would seem that promotions are paying dividends.
Development of the generic marketing strategy for Canadian lobster was a recommendation of the Maritime Lobster Panel Report. Both the Maritime Lobster Panel and Independent Review of the Prince Edward Island Lobster Fishery stressed the importance of generic marketing to help stabilize prices within the industry and to grow demand for lobster.
The Maritime Lobster Panel stated that the Lobster Council of Canada is ideally positioned to conduct generic marketing on behalf of the industry, and the spinoff value from investment in generic marketing is compelling. For example the beef industry has shown that for every dollar dedicated to generic marketing the return on investment is nine fold. For the lobster industry, establishing a levy that promotes marketing of the Canadian lobster brand also allows for federal government money to be added to the pot. Practically speaking, this means that a small investment from a harvester of $300 can multiply to $1,200.
Meanwhile, Executive Director Irvine reports that 2015 is shaping up to be a very exciting year for the Canadian lobster industry, as exports to Asia continue to grow, progress is made on quality grading, and eco-certification of the inshore fishery, potential work on automation and the talk of an industry levy are on the horizon.
In general, 2014 was a good year for most players in the lobster sector. Prices at the wharf and in the market were aided by the weakened Canadian currency, which favored exports. Furthermore, landings were generally up and the economies of major trading partners were stronger.
But challenges abound that require unified effort to address. Processing plants that need a consistent workforce are dealing with major changes to the Temporary Foreign Worker Program. Exporters must change their packaging to adhere to new rules in the European Union, and the entire sector is trying to find collective mechanisms to fund marketing, promotion and other priorities of the Lobster Council of Canada.
