Selling Lobster in the U.S.
Opportunities and Challenges
U.S. Restaurant Industry
ATLANTIC LOBSTER SUMMIT
HALIFAX , NOVA SCOTIA
October, 2007
Opportunities in the U.S. Market
Darden Restaurants, Inc.
Not Only at Red Lobster…
Lobster Spaghetti
Lobster & Shrimp
Pasta
1st Red Lobster 1968 -- Lakeland, Florida
Red Lobster
Lobster Menu Offerings
Lobster Fest
Food & Beverage Spending
$1.3 Trillion
Commercial
“Away from Home”
$491 Billion
38%
Restaurant Sales
“Away from Home”
$314 Billion
“Food at Home”
$778 Billion
61%
Other Sales
“Away from Home”
$177 Billion
Other
$12 Billion
1%
2006 U.S. Restaurant Industry
Sales
$314 Billion
Mid-Scale
Quick Service
Casual
Dining
Fine
Dining
Source: CREST & USDC
U.S.
Restaurant
Growth
935,000 restaurants will hit $536.9 billion in sales in 2007
Restaurant Industry Sales
(Billions of Current Dollars)
$536.9
60% Increase in
Last 10 Years
$322.5
$199.7
$42.8
1970
1987
Source: National Restaurant Association 2007 Restaurant Industry Forecast
1997
2007 Est.
2006 U.S. Restaurant Industry
Sales
$314 Billion
Mid-Scale
$50B
Quick Service
$181B
58%
Average Meal Price $5
Source: CREST & USDC
16%
Average Meal Price $9
2006 U.S. Restaurant Industry
Sales
$314 Billion
Quick Service
$181B
Mid-Scale
$50B
16%
Average Meal Price $9
58%
Average Meal Price $5
Casual
Dining
$68B
21%
Average Meal Price $15
Fine
Dining
$15B
5%
Average Meal Price $30
Source: CREST & USDC
Darden
8% Share of
Casual Dining
Restaurant Industry
U.S. Lobster Market
9%
29%
62%
Cold
Source: National Marine Fishery Service
Warm
American
North American Clawed Lobster
Production
1982 – 2007
90,000
Metric Tons
80,000
70,000
60,000
50,000
40,000
30,000
82
84
86
88
90
92
94
96
98
00
02
04
06E
Florida/Caribbean/Brazil Lobster
Production
Western Hemisphere 1982 - 2007
42,000
Metric Tons
40,000
38,000
36,000
34,000
32,000
30,000
82
84
86
88
90
92
94
96
98
00
02
04
06E
Spiny Lobster Stock Status
Regional Workshop on the Assessment
and Management
Status of Stock
Countries
of CaribbeanVenezuela
Spiny Lobster
(Panulirus
Under Exploited
(some areas)
Fully-exploited or
stable
Over-Exploited
Unknown
argus)
Puerto Rico & Virgin Isles; Turks
and Caicos; U.S.A., Belize; Mexico,
Costa Rica; Cuba; Antigua &
Barbuda; Venezuela (some areas)
Nicaragua; Jamaica; Dominican
Republic; Brazil; Colombia;
Honduras
Martinique; Guadalupe; Haiti;
Bahamas; other Lesser Antilles
countries
Global Seafood Procurement…
Not Without Controversy
Darden Environmental Trust
Global Aquaculture -- Darden
Actions
Seafood Guides – United States
• Audubon Society (http://seafood.audubon.org/seafood_wallet.pdf)
• Blue Ocean Institute [Seafood MiniGuide:
www.blueoceaninstitute.org]
• Monterey Bay Aquarium [Seafood Watch Pocket Guide:
www.seafoodwatch.org]
• Environmental Defense [Seafood Selector: www.oceansalive.org]
• NRDC [Mercury in Fish: www.nrdc.org]
• Shedd Aquarium [Rite Bite Seafood Wallet Card:
www.sheddaquarium.org]
• Wildlife Conservation Society [Go Fish card: www.wcs/gofish.org]
• Steinhart Aquarium [California Academy of Sciences Seafood
Guide: www.calacademy.org]
• ECHO Fund [Seafood Surveillance Card: www.echofund.org]
• Eartheasy [Sustainable seafood guide:
Standards/Certification
Programs
Global Aquaculture Alliance
FAO & WHO/CODEX alimentarius commission
International Standards Organization (ISO)
Marine Stewardship Council
Naturland
Office international des épizooties (OIE)
Safe Quality Food -- SQF
WWF
Agriculture, Fisheries and Conservation Department of Hong Kong/Accredited Fish Farm Scheme
Alter-trade Japan
BIO-GRO New Zealand
BIO-Suisse
Brand Canada
Carrefour Quality Line
Conseil ds appellations agroalimentaires du Québec (CAAQ)/Quebec Organic Reference Standard
EurepGAP: Integrated Aquaculture Assurance
Friends of the Sea
Fundaciòn Chile
IFOAM
Label Rouge
Marine Aquarium Council (MAC)
Milieukeur
NASAA
National Code System for Responsible Aquaculture
Quality Approved Scottish Salmon/Tartan Quality Mark
Safe Quality Food
Shrimp Seal of Quality
Soil Association
SPLAM
Swiss Import Promotion Programme (SIPPO)
Thai Quality Shrimp
USDA
USDA - Organic
Whole Foods
Global
Global
Global
Global
Global
Global
Global
Global
Hong Kong
Japan, Indonesia
New Zealand
Switzerland
Americas
Internal
Quebec
Scotland
Jamaica
Chile
International
France
International
Netherlands
Australian and South Pacific
Canada
Scotland
Canada
Bangladesh
UK
Malaysia
Switzerland
Thailand
US
US
Internal
Proposed Solutions -- Short
Term
The Role of International Organizations
• Companies in the United States, Japan,
European nations, and other developed
nations work to reduce number of
standards.
– Effort should be led by international
organizations such as the
Food and Agriculture Organization of the
United Nations
Proposed Solutions -- LongTerm
The Role of Governments
• Consumer facing companies, production
companies, and supply chain companies should
petition their respective governments
to enhance national laws pertaining to
environment and social justice
– For emerging nations, credibility of their laws and
their enforcement is key to government supplanting
private standard setting organizations
• Partnerships can be developed with stakeholders,
such as non-governmental organizations to avoid
Summary of Market
Opportunities and Challenges
• The Casual Dining and Fine Dining
segments of the U.S. restaurant industry
will continue to grow
• Increasing sales to the Casual Dining
segment will require creative
approaches where the average meal
price is $15.00
• A static Western Hemisphere lobster
resource is an opportunity tempered by
consideration for consumers’ price