When it comes to fresh seafood mass can't afford to flounder - marketing seafood - Brief Article - Statistical Data Included

DSN Retailing Today, April 2, 2001 by Mike Duff

From the ocean to the dinner table, seafood is arguably the most unforgiving of all perishables. Handling is such a vital issue that training and marketing are as critical in this category--if not more so--than in any other throughout food retailing channels.

Small seafood stores thrive throughout the United States specifically because they provide consumers a level of trust and confidence they don't get elsewhere, particularly from big, multidepartment food sellers. Conversely, supermarkets and supercenters often do less than a great job of selling seafood.

Too often, consumers get a more satisfying seafood experience if they visit the neighborhood fishmonger than if they venture off to a big-chain operation. To combat this trend, many supermarkets and supercenters are becoming more savvy in selling seafood; they can build on knowledge, training and sophisticated promotion to build their share of the market.

Getting seafood right is critical because winning share of stomach in the category isn't easy. Despite the attention seafood has gotten as a healthy alternative to meat, consumption hasn't changed much, according to The NPD Group. For example, the percentage of meals and snacks that include a seafood item--fresh, frozen and canned--is the same today as it was in 1985 at 1.8%. In the period between now and then, the category peaked twice at 2% in 1987 and 1989.

This doesn't mean there hasn't been dollar growth, however. In part, this may be due to consumers demanding more sophisticated offerings. AGNielsen Category Planner numbers indicate that, among frozen products, breaded items are declining while unbreaded fish, crab and shrimp are gaining rapidly at food, drug and mass market outlets. Unbreaded shrimp, the category advancing fastest, improved by double-digit percentages in dollar terms every annum from the year ending Jan. 31, 1998, to the year ending Jan. 27, 2001. From 2000 to 2001, unbreaded shrimp gained 14.9% to $377.3 million.

To build seafood sales, therefore, supermarkets and supercenters have to make a bigger effort. The effort starts with handling and ends with marketing, including considerable consumer education.

Supercenters, as they've grown, have learned just how carefully they have to operate to sell seafood. Karen Burke, a Wal-Mart spokeswoman, said the company's supercenters have chainwide, species-specific regulations regarding the handling of seafood products.

"We're very aware of the procedures we have put into place and make sure they are followed down to the final letter. Everything is very specific. We understand the importance of quality and safety," she said.

Still, the job doesn't end there. Consumers need a hand in handling seafood. Jewel-Osco recently made a big effort to do just that from March 20 to 22 when the combo-store chain offered free seafood cooking classes at 112 locations from 7 p.m. to 8:30 p.m. The classes were part of an overall effort to make Jewel-Osco customers more comfortable with buying seafood from the store.

"This is the third year in a row we've held the classes," said Karen Ramos, a spokeswoman. "We now hold them twice a year. Our seafood handlers are also experts in preparing seafood because so many customers have questions. Our seafood handlers have recipes they can share with customers, and we have a lot of recipes available to give out from reference boxes we offer. The classes enhance this by letting customers see something prepared."

Among the most famous of seafood marketers in the United States is Clemens Markets, an 18-store supermarket chain operating just northwest of Philadelphia and headquartered in Kulpsville, Pa.

Particularly prominent was its lobster festival with massive lines waiting for the stores to open. However, the deep discounting that drove those promotions is no longer part of the company's philosophy, said Mark Miller, director of seafood operations. Seafood marketing was integrated with that of meat in the past, so the big seafood promotions were designed to drive consumers to all the protein-dense categories.

Clemens also gained a reputation as being particularly fussy about handling products, and its customers responded.

Rather than lay product on ice, where temperatures were inconsistent and flavor leeched out over the course of the day, Clemens insisted that products be displayed in deep metal pans driven into the ice and covered to keep them evenly chilled.

Times changed at Clemens, but not the commitment to seafood freshness. In fact, that's the reputation the company chose to build upon when its orientation became profits rather than promotions, Miller said.

Today, seafood is displayed in cold cases with circulating air rather than on ice to make storage even more efficient. Miller said standards remain high because training is thoroughgoing and includes everyone from the buyers to the hourly employees.

Clemens established a strong reputation among regional consumers for seafood, and now applies its standards and banks on its reputation to create a quality seafood department. "My response to the department's development is to make it profitable on its own," he said. "We still do promotions, including demonstrations, but we don't give product away anymore. Our promotions do generate excitement, but we have to do it in a way that's smart for our bottom line."