BRAZIL – A MARKET IN
RAPID CHANGE
– Lessons to learn
170 YEARS OF BRAZILIAN/
NORWEGIAN HISTORY
• The first ship with clip fish for
Brazil left Norway in 1841
• Today 1/3 of all Norwegian clip
fish is exported to Brazil
• The value was 852 million NOK
and the volume 26.000 tons last
year
• The market has been growing
and the competition has been
increasing over the last decade
POSITION OF BACALHAU
IN BRAZIL
• Bacalhau is a premium product
for festive moments
• Bacalhau is more expensive
than filet mignon
• Average eating frequency is 2-3
times per year
• 60-70% of the volume is
consumed in connection with
Christmas and Easter
FOR 170 YEARS THERE WAS ALMOST NO PRODUCT
DEVELOPMENT IN THE CATEGORY
• For 170 years the clip fish has been sold in almost the same way as whole fish
IN THE LAST SIX YEARS THERE
HAS BEEN AN EXPLOSION OF NEW PRODUCTS
• Now 40% of the market consists of new more convenient products
Skin and boneless filets
(5% of volume)
Desalted
(15% of volume)
Teared
(20% of volume)
EFFECTS OF THE PRODUCT DEVELOPMENT IN
THE STORES
• Clip fish now gets space both in the salted section and in the frozen section of
•
the stores which increases the spacing and the total sales in the category
But, there are also some cannibalization between convenience products and
the classical products
NORWAY IS STILL THE MARKET LEADER, BUT HAS BEEN
LOSING MARKET SHARES BECAUSE OF THE NEW PRODUCTS
• The Norwegian market share has fallen for five years because no convenience
clip fish products are available from Norway
60 000 000
50 000 000
40 000 000
Spain
China
Portugal
Norway
30 000 000
20 000 000
10 000 000
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
WHAT ARE THE MOST
IMPORTANT DRIVERS
BEHIND THESE CHANGES?
MOST IMPORTANT DRIVERS FOR THESE CHANGES
1.
Food/Consumer trends
2.
Distribution trends
GLOBAL FOOD TRENDS IN BRAZIL
THE CONVENIENCE AND PRACTICITY TREND IN
THE BACALHAU CATEGORY
“I always buy it... It’s good, practical,
delicious. It’s worth it.”
(light consumer, class C, RJ)
“When I’m preparing dumplings I always
buy the shredded codfish.”
(light consumer, class AB, Salvador)
DISTRIBUTION TRENDS
- MODERN DISTRIBUTION IS SPREADING
DISTRIBUTION TRENDS
- FOCUS ON CUTTING MANUAL LABOUR COSTS
MANY CHAINS PREFERS PRECUT AND PACKED
PRODUCTS TO SAVE LABOR IN THE STORES
HOW IS NORWEGIAN CLIP FISH
GOING TO STAY ON TOP IN
BRAZIL?
- 4 possible strategies
PREFERRED ORIGIN OF BACALHAU IS NORWEGIAN
WHICH IS YOUR PREFERRED COUNTRY OF ORIGIN WHEN YOU BUY
“China is not even
considered!”
(frequent
consumers, class
AB, RJ)
“We are all scared
from China’s.”
(light consumers,
class C, Salvador)
THE RECALL OF THE NORGE-LOGO IS HIGH
THERE ARE MANY BRANDS OF SEAFOOD THAT YOU MIGHT HAVE NOTICED
CAN YOU REMEMBER HAVING SEEN THIS LOGO?
1. LET THE COMPETITION KEEP THE PART OF THE MARKET
CONSISTING OF CONVENIENCE PRODUCTS
• Challenges
– Impossible to know what proportion will ultimately be left to classic
–
products.
• Could be a valid strategy for a high volume/low cost per unit producer
Competitors that offer the entire product range will be preferred partners
for buyers seeking fewer suppliers
2. DEVELOP NEW PRODUCTS TO ADAPT TO THE
CONVENIENCE AND PRACTICITY TREND
A. Produce convenience products in low cost countries
Challenge: Already over established in China?
B. Produce convenience products in Brazil, alone or in
partnership with local players
May produce goodwill among Brazilian authorities
Challenges: Cost, production and management
C. Produce convenience products in Norway
Challenges: High cost of manual labor in Norway.
Requires technology development and investment
– Probably have to aim for a higher quality / price than competitors from low
cost countries and invest in packaging & marketing will be essential to
differentiate
3. DEVELOP AND POSITION NEW PRODUCTS
DESIGNED TO FIT TO OTHER TRENDS
FOCUS ON RELIABILITY AND QUALITY WILL MEAN
FOCUS ON PACKAGING AND MARKETING
4. PORTFOLIO STRATEGY: OFFER PRODUCTS IN ALL CATEGORIES AND
START WORKING WITH PRODUCT DEVELOPMENT AND MARKETING
LESSONS TO LEARN FROM BRAZIL
•
When several trends operates together, markets can change
very rapidly
•
Markets often go through the same trends, but at different
times.
–
•
Brazil follows many of the same trends as Western Europe, but 10-20 years later
To keep the largest possible share of the value chain in the
seafood industry Norway must use the advantage of the direct
access to the raw materials trough investing in innovation and
marketing based on consumer insights
IT IS NOT ENOUGH ANYMORE TO
VISIT THE MARKET TWICE A YEAR
TO SELL THE PRODUCTS
• It is extremely important to be
present in the market and follow
developments in retail and
consumer behavior closely to
pick up trends as they happen
– The Norwegian Seafood Council is
doing a job for the industry here
today, but this is not enough
•
“The price of doing the same old
thing is far higher than the price of
change” - BILL CLINTON
START PREPARING FOR THE NEXT TREND:
FINISHED PRODUCTS WITH CLIP FISH…