ASMI SUMMER STRAT SESSION August 2017 BRAZIL Jose Madeira

Market Overview Large market: 210 million people GDP Growth est.: 2017: 0.5%, 2018: 2% Inflation took a nose dive: 3.0% (12 months) from 6.3% in 2016 Base interest rate going down: 9.25% (Selic) Unemployment: 13% Currency appreciation BR$3.10: $1.00 USD

Market Overview Seafood Growing Seafood Imports Imports HS Chapter #03 (FY 2017/FY 2016) Increasing enforcement on Polyphosphates and/or heavy glazing on imported seafood DIPOA: On-line product registration since January 2017 Automatic approval for frozen H&G fish Alaska / U.S. is a trend setter in the seafood business Market underserved Total imports US$1.2/1.0 billion (+20%) 352.8 /329.4 thousand tons (+7%) Imports from the U.S. US$8.1/3.2 million (+250%) 2,100/1,060 tons (+98%)

Activity Highlights Retail merchandising campaigns organized in 9 states, 41 retail chains; 727 outlets, 2,300+ store-days. – Walmart TV ad; 39 tons; $527K Launches: Noronha, Komdelli, Swift, Frumar APAS Show May 2017: 45 new trade leads (importers) Social media: Facebook: over a MILLION likes (770 + 237) Instagram: over 2,300 followers Earned media: over US$ 1 million in total EAV FY17

Activity Highlights US Food Experience in partnership with the FAS/ATO, Chef James Briscione (NY) Restaurant awards: 19 (new recipe book) Explore opportunities in other South America markets: Trade leads FAS Colombia, Moises Huerta - Educational export seminar in Seattle

FY 2018 Strategy Continue strong emphasis to make more AK products available in the market In-store promotions Special program for medium size retail chains Culinary and nutrition schools presentations Events, chef demonstrations, trainings and workshops

FY 2018 Strategy Special campaigns/approach for APO - hotsite Keep emphasis on the “wild and Sustainability” message and Cook It Frozen! as a time/cost saving solution Keep focus on trade education and relations Keep working with top retailers in major cities as well as selected restaurants Increase partnerships/pairing with other U.S. Origin products Social media as a retail merchandising tool

Didn’t Work Sockeye Salmon Promotion on the Northeastern States 10-day-Christmas Promotion Alaska seafood in general is doing very well in the region (pink, keta, pollock and cod) Low disposable income High seafood consumption of low cost species – much above country average Expensive specie for the region (1st time ASMI promoted Sockeye Salmon in the Northeast) Acceptance of Sashimi x Grilled Sockeye samples distributed Negative ROI Chains: Supermercado Leão and Favorito 3 outlets / 30 store-days (Recife and Natal) Dates: December 15 -24, 2016 ASMI investment: $1,600 Frescatto investment $ 500 Volume/Value Sold: 27 kg = $ 735

Moving Forward More companies applying for DIPOA registration More companies visiting our market and attending our activities Development of a network of Chef Ambassadors Development of new recipes and Alaska seafood plated shots Keep participating in FAS/ATO activities (#USFoodExperience, Sabor USA, Food & Service) Expand opportunities in South America region

Discussion