Alaska Seafood Marketing Institute FY16 Retail BUDGET Larry Andrews Retail Marketing Director May 5th, 2015

Retail FY16 Program Budget Overview

Retail FY16 Program Budget Overview

Retail Program Budget Highlights Major changes Addition of $315,000 In-Store Demo Programs Positive Retail Response Flexible … Species/Product Form Elimination of Trade Magazine Campaign Limited Retail Response (Direct Calls)

Retail Program Challenges Challenges for coming year Promotion of Frozen Increase Retail Promotions Tie-In with Consumer PR Editors & Food Writers: Make Frozen the New Fresh! Cooking Demonstrations Buyers Editors & Food Writers Access to Correct Audience Chief Sustainability Officers Central Buying Marketing Team

Retail Program Challenges Challenges for coming year Strong US Dollar Shifts Emphasis to Domestic Markets Board Directives: “Special Projects” Time to Plan & Respond Impact on Current Projects Limited Staff Lack of Visibility: Industry Promotions in Marketplace Retailer Reluctance Promote at Requested Timeframe Meet Minimal Requirements; Callout as Product of Alaska, ASMI Logo, Reference RFM, etc.

Retail Program Opportunities Opportunities for FY16 Uber Athlete: Continued Outreach to Younger Audiences Consumer PR Campaign Support Increased In-Store Activity … Demos! Reaching Millennials with Retailer Support 30% Use 4 or More Devices a Day! 66% Follow Brands on Social Media Only 41% Enjoy Interacting with Brands 20% Hispanic

Retail Program Opportunities Opportunities for FY16 New Sockeye Merchandising Plan “Center Cut” Fresh Ground Burgers 4 oz. Portions & Merchandising/Display Nutritional Content (4oz. Portions) Continued Promotion of Bairdi Whitefish: Cod, Pollock Cakes Increase Frozen Support Target Key Retailers Based on Seafood Sales Rankings

Takeaways from Boston and the Global Seafood Marketing Conference… Continued Use of POS & Digital Assets (Creator Select Site) Support for In-Store Demos Support for US Jobs/ASMI American Themed POS Global Seafood Mktg. Conf. Russians Buy Less Farmed Salmon More Going to US = Pressure from Norwegian Farmed Farmed Salmon 23% Increase in Chilean Production; 9%Total Salmon Supply Strong Dollar, Volumes of Russian Crab Sent to US Increased Downward Pricing Pressure

Takeaways from Boston and the Global Seafood Marketing Conference…continued US Best of Class Sell More Wild Seafood Throughout the Year Sales of Random Weight Seafood Sales Up +6.4% Tonnage Down -2.8% Avg. Retail Price Up +9.4% Regional Sales Performance Region Sales Pounds Avg. Retail Northeast $1.1B + 4.7% 145M -2.6% +7.5% Southeast $727M +5.7% 85M -7.1% +13.8% Mid South $524M +6.7% 67.5M -1.5% +8.3% South Central $471M +6% 91M -6.7% +13% Great Lakes $44M +7.3% 2.7M -0.6% +6.7% California $443M +9.3% 62M -1.6% +11.1% West $441M +6.1% 61M -0.7% +6.8% Plains $239M +5.7% 35M +4% +5.7%

Takeaways from Boston and the Global Seafood Marketing Conference…continued Top 10 Fin Fish Regionally

Wrap up… Marketing in Canada (International not Domestic) Challenges Staff Limitations/Budget/Time Lead Time: Planning Type of Promotions: Trade Promo Issues Time to Build Retailer Relationships Lack of Visibility in the Marketplace (see below) How Can Board/Industry Support Visibility Into Current Industry Marketing/Promotional Activities Key Contact Lists Introductions Types of Promotions Proven Successful

Thank You! Questions?