1. Ensuring A Future Market For Shellfish A.Introduction Source To Plate Product To Consumer Via Branding B.Ensuring The Future Market C.The Loch Fyne Brand D.Integrated Strategy E.Loch Fyne & Shellfish F.Sourcing Philosophy G.Oyster Strategy H.Mussel Strategy I.Critical Success Factors J.Summary

2. Ensuring The Future Market  Consumer Demand {Segment & Target {Aging Population {Over 50’s Wealth {Varied Tastes {Destination Consumers

3. TRENDS IN SEAFOOD - CONSUMER ATTITUDES (Mintel research 06) ~36% of population believe they should eat more fish ~34% SUBSTITUTING FISH FOR MEAT ~24% like fish but don’t like to cook it at home ~35% ARE MORE LIKELY TO EAT DIFFERENT TYPES OF FISH COMPARED TO 1 YEAR AGO ~62% say fish is the best way to consumer Omega-3 ~91% increase in salmon consumption by males aged 17-24

4. MINTEL ANALYSIS ~2006 – FISH OUTSELLS CHICKEN FOR FIRST TIME - WAITROSE ~Forecast 35% growth in UK seafood sales between 2002 - 2011 ~Retail sales - value growth 2x volume growth - price not an issue? ~PROVENANCE – MAJOR ISSUE IN RETAIL – PUSHED BY MEDIA ~Alternative species should be championed ~SINGLE MOST IMPORTANT SHIFT & BIGGEST MOVEMENT IN ANY FOOD SECTOR IN RECENT YEARS = SUSTAINABILITY

5. UK POPULATION TRENDS ~Overall population to increase 4.2% 2000-2010 BUT over 65 population to grow 14.5% in same period ~Over 65s = 16% of population WILL BE 23% by 2031 ~Over 85s - new record 1.2 million ~Population age (median) 38.2 years - was 34 in 1975 ~Over 65s have 80% of wealth

6. WHAT DO OUR CUSTOMERS THINK Topline from 2006 survey ~ QUALITY OF FOOD MOST IMPORTANT FACTOR + SCORES HIGHLY ~ SERVICE comes next - relaxed, friendly - liked by most ~ BRAND - seen as guarantee of quality, provenance ~ FISH - LFR = Fish. 35% customers are fish lovers ~ 80% - eat fish at least once a week ~ AVERAGE customer eats at LFR 3-5 times a year (8-10% of all meals eaten out depending on site/city) ~ SUSTAINABILITY IS ‘VERY IMPORTANT’ TO 60% OF OUR CUSTOMERS ~ NEW FISH VARIETIES: OVER 80% INTERESTED IN TRYING NEW, ENVIRONMENTALLY FRIENDLY VARIETIES ~ FEW use restaurant guides - local and national press influential

7. MARKETING CONSIDERATIONS ~ETHICAL CONSUMER ~HEALTHY EATING ~GROWTH IN SEAFOOD ~AGEING POPULATION ~NEW MEDIA ~SITE DIVERSITY  Increase profile of Loch Fyne as an environmental pioneer BUT keep sense of humour  Continue to talk up health benefits of fish in comms  Opportunity to experiment - Ugly Fish, Seafood Week  Early birds, loyalty, groups  Interact with customers, targeted promos, web innovation  Trial promotions, ‘site’ profiles and site specific activity

8. Meeting The Demand {Effective Route To Market {Satisfy The Target Consumer ~Quality ~Variety ~Service ~Provenance ~Sustainability ~Environment {Branding Is Critical ~Reassurance ~Security ~Value CONSUMERS BUY BRANDS NOT PRODUCTS

9. THE LOCH FYNE BRAND Our Brand Values ~Quality ~Sustainability ~Provenance ~‘Local’ ~Service

10. Integrated Strategy BRANDING LOCH FYNE Own Products ~Aquaculture ~Smokery Backward Integration Shellfish Fresh Fish Meat Forward Integration Own LFRetail Contract GFPartners Premium Retail & Food Service

11. Loch Fyne & Shellfish {Sourcing Philosophy {Own Products Philosophy ~Oyster Strategy ~Mussel Strategy

12. Critical Success Factors For The Future ~Supply ~Quality ~Food Safety ~R & D ~Training / Recruitment

13. SUMMARY ~Trends All Positive ~No Compromise On Quality ~Sustainability Is Here To Stay ~Branding Is Key ~Effective & Efficient Route To Market ~Profit In The Supply Chain Is Essential ~Long Term Future Depends On A Joined-Up Approach ~Competition Will Be Aggressive BUT Heritage & Quality Will Prevail