CORDOVA -- The new board of the Copper River Prince William Sound Marketing Association (CRPWSMA) recently gathered for its annual board retreat, this year choosing the small Prince William Sound community over Seattle.
"In recent years the decision to meet in Seattle was driven by a desire to build industry partnerships for the fleet," said Kim Ryals, executive director. "Having progressed to the point where those partnerships are established, the board returned to home court this year."
Ryals and board president, Mike Mickelson, set out to create a retreat experience that would build a common understanding among board members regarding organizational history, global markets and the Copper River brand.
Day one of the formal agenda began with a review of association history presented by facilitator Pat Shanahan. Shanahan has more than 30 years experience in strategic planning with seafood related organizations. This was followed by presentations from several experts, including Chris McDowell and Kate Consenstein.
'Niche player' among global markets
A seafood industry analyst for the McDowell Group, Chris McDowell conducts market and supply research on Alaska's major commercial species for clients including the Alaska Seafood Marketing Institute. McDowell is a lifetime Alaskan who also serves on the board of the United Fishermen of Alaska.
McDowell's report provided a global look at salmon with data and trends across the fresh, frozen, canned and farmed salmon markets.
McDowell painted a picture of increasing commodity value for the Copper River/Prince William Sound products as a "niche player" among highly dynamic global markets. However, McDowell also told the board it needs to stay informed and competitive.
"Prince William Sound produces 6 percent of the global sockeye supply," McDowell said. "That is compared to 23 percent from Russia, 46 percent from Bristol Bay, 19 percent from other Alaska fisheries, 5 percent from Canada and 1 percent from Japan."
In recent years the harvest from Bristol Bay, as well as the competition from Chilean farmed fish, has declined. McDowell predicted that these markets will rebound.
"The single largest sockeye market is domestic," said McDowell. "Two times as much as Japan or Europe. Prince William Sound was the pioneer on quality, but Bristol Bay has been working to improve quality and has been able to increase its market share in the U.S."
On the farmed salmon side, McDowell told the board not to underestimate the ability or desire of Chilean farmed salmon producers to "take action to come back." McDowell also provided a snapshot of large new players in the farmed market -- such as Verlasso, a company with ties to Acqua Chile and Dupont, and Skuna.
"These companies are bigger than anything you know, and they are a real concern," said McDowell.
"They are marketing something they call 'harmoniously or craft-raised' salmon. Indeed, according to Verlasso's website: "We offer a premium salmon raised in harmony with the natural environment." The Skuna Bay website has pictures of Vancouver Island's rocky coastlines and salty looking guys in rain gear. The site states: "The Skuna Bay craftsman farmer stands alone in the teeth of mother nature, using his experience and judgment to raise good fish."
'A powerful brand'
While the McDowell report may have been eye-opening, the Schiedermayer report offered reassurance.
"Copper River is the No. 1-branded seafood that consumers can identify today," said Kate Consenstein, a Shiedermayer Alaska account executive. "For upper-income baby-boomer consumers, they perceive it as the best. This is the result of decades of hard work, as well as some coincidence -- and nobody else has managed to do it yet."
Consenstein told the board that the brand is so strong, Schiedermayer gets calls regularly from produce growers in the Lower 48 saying they want to be "the Copper River" of onions and other non-seafood products. "Three in just the past six months," said Consenstein. "That's a powerful brand."
Consenstein said Copper River market advantages include being an Alaska seafood product that comes directly from fisherman hands to the consumer's plate. "Consumers identify with hardworking fishing families, they know and love Alaska's cold water, and they know it is a healthy protein.
"No other salmon comes close," said Consenstein. "Even if they just ate a bag of cookies, or smoked a cigarette, they know that a purchase of Alaska seafood makes them feel they have done something healthy for themselves."
Furthermore, Consenstein told the board that sustainability is a deciding factor for many consumers today, and that while only 5 percent of consumers know what MSC is, more than 60 percent of seafood consumers identify Alaska seafood as sustainable -- even if they cannot define the word sustainable.
"The sustainability issue is a big one, and I recommend that this group continue to focus on this," said Consenstein. "Millennials, consumers ages 22-32, are among the fastest growing market. Their disposable income will exceed that of Boomers in just three years, and they value healthy, sustainable food. They have a strong sense of entitlement, and they will pay for it."
As to who should be marketing "your fish," Consenstein told the board that the Alaska Seafood Marketing Institute plays a key role in telling the whole state story.
"No one else is as reliable a storyteller for your fishery as you are," said Consenstein. "No one has as much skin in the game. And when consumers hear your story and see the images, they perceive it as authentic. It feels good to them and valuable.
"What you have done so far has given you a brilliant position," said Consenstein. "You have established a luxury brand, and now you are responsible for managing it. Where you have new opportunity is to expand your price points through marketing all your salmon products.
"The most important thing that you as a board can convey to your members is the importance of your sustained effort to maintaining your current marketplace."
Brand enhancement a priority
On day three of the board meeting, the discussion turned to strategic planning. Board president Mike Mickelson had determined to take a unique approach to the final session, a round-robin SWAT analysis by board members.
"Mike wanted to open up the discussion to get the full value of perspectives from existing board members as well as the new members," said Ryals. "It turned out that not only did the same priorities emerge as in the past, but the new board built on those with new innovations and they all came to see enormous value in the new board composition.
"For example, brand enhancement was again identified as a priority, but the innovation was to take the brand from its primary association with king salmon and luxury markets, and to expand it. To prioritize educating consumers about the entire season, multiple species and different price points.
After three days what was the take-away?
"Tell the fleet to affix their sunglasses," new board member Jeff Olsen told The Cordova Times. "Their future is bright."
Jennifer Gibbins is editor of The Cordova Times, where this report first appeared. Republished with permission.