THE COMPANY
Wild Alaska Salmon Direct
Wild Alaska Salmon Direct, Inc is a direct retailer of commercially fished salmon.
Formed in April 2010 by Michael Clemens and Victor Gesmundo, the company
was founded to deliver high quality salmon products to the US market. While the
company offers several different products, its flagship offering is its salmon jerky,
which has a superior taste to other salmon jerky thanks to its exclusive use of
Alaskan salmon, and a proprietary recipe.
In addition to having a robust product offering, the company also has a strong
vertical supply chain. Salmon is directly sourced from Kodiak, Alaska, and is
processed in Henderson, Nevada into jerky. This tightly controlled supply chain
ensures that the company has direct control over every step of the value added
process. The net result is high quality, healthy, and delicious salmon products.
Company location details
Fishery:
Kodiak Island
Alaska
Jerky processing plant:
10895 S. Eastern
Unit 100
Henderson, Nevada
89052
Telephone: 702-430-7742
THE MARKET
Salmon market at the macro level
The Alaskan salmon market is growing due to several factors, including
increasing awareness of the health benefits of salmon and recent reports which
indicate that wild salmon may contain less contaminant than farmed salmon.
The US salmon market grew steadily during the period between 1989 and 2004.
While the majority of Salmon consumed was imported farmed salmon, domestic
wild salmon has been proportionally very consistent vis-à-vis imported wild
salmon and farmed salmon over the last 15 years.
Source: The Great Salmon Run: Competition Between Wild and Farmed Salmon,
January 2007, TRAFFIC North America World Wildlife Fund.
Household salmon consumption habits are also very favorably inclined for Wild
Alaska Salmon Direct. A recent report by TRD Frameworks Market Research
and Planning has some persuasive findings as regards US household’s salmon
consumption habits (see next graph).
Salmon is by far the most popular seafood purchased by Americans:
Source: Consumer Brand Perception Study Report, by Alaska Seafood Marketing Institute, August 2009.
Alaskan salmon is preferred over other types of salmon—including Atlantic
salmon:
Source: Consumer Brand Perception Study Report, by Alaska Seafood Marketing Institute, August 2009.
The salmon jerky market as a subcategory
A variety of jerky products are offered in the South Western United States, the
most common of which is beef jerky, which can be found in almost all
convenience stores and sports stores. Most jerkies are sold near the cash register
as a point-of-sale purchase display as an “impulse” buy. Because salmon jerky is
less well known, and therefore, less readily available than beef jerky, it has the
potential to grow rapidly and become a potentially popular “healthy snack” in
point-of-sale displays in convenience stores and sports stores.
Convenience stores as a channel
Since beef jerky is already sold in convenience stores, it’s logical that salmon
jerky would also be sold in convenience stores, using the existing, proven pointof-sale model. There are approximately 147,000 convenience stores in the United
States. The total sales of these stores was $511 billion (NACS’ 2009 sales
data)—or $1 for every 28 dollars spent in the country in 2009.
THE BUSINESS MODEL
Overview
The company’s business model is simple: fish is caught in Kodiac, Alaska, and
then processed into IQF (individually quick frozen) product. The salmon can then
be sold in the United States or internationally, or sent to Nevada for further valueadded processing into jerky.
Wild Alaska Salmon Direct’s has three key competitive advantages over other
salmon product producers. These competitive advantages are essentially built
into the company’s business model:
1. Top down control of the supply chain. Wild Alaska Salmon Direct
controls the flow of its product from the catching of salmon, to the
delivery of the finished product. This vertical business model ensures that
the company has complete control over the quality of the product at ever
step of the production process.
2. A superior tasting product. Wild Alaska Salmon Direct’s proprietary
recipe went through hundreds of iterations before it became what is
considered to be a superior tasking jerky, according to taste tests.
3. Direct access to fished salmon and a fishing license holder. Michael
Clemens—one of Wild Alaska Salmon Direct principals—is a salmon
fisherman with an Alaskan salmon fishing license. Possession of a fishing
license is a critical advantage for the company, because it guarantees the
company direct access to fish. The requirement for a license also
effectively acts as a barrier to entry for new players, since no new fishing
licenses are being issued by the state of Alaska.
The business model flowchart
Salmon is caught in
Kodiak, Alaska.
Fish is processed in Alaska
within 48 hours of
being caught.
Salmon sent to distributors
as IQF to be sold as
wholesale.
Value-added processes
Salmon sent to
Henderson, Nevada, for
processing into jerky.
Jerky is distributed in
convenience stores, and
sold through the website
or other channels.
The business model details
1. Fish is caught under the personal supervision of Michael Clemens, Wild
Alaska Salmon Direct Fishing and Processing Operations Manager. The
fishing volume is carefully managed in order to ensure an optimal yield.
In the event that demand outstrips supply, the option to purchase directly
from other ships exists.
2. Salmon is processed by local processors within 24 to 48 hours of being
caught (by regulation). These local processors are also overseen by
Michael Clemens.
3. The processed salmon then follows one of three possible paths in the
supply chain:
a. Sent directly do distributors as an IQF (individually quick frozen)
product.
b. Sent to the Las Vegas facility for further processing into salmon
jerky, and is then shipped to distributors and retailers.
c. Sent to the Las Vegas facility for further processing into salmon
jerky and is then sold on the company’s website directly to
customers.
While the company has control over all facets of its supply chain flow, it will
initially subcontract the distribution and processing of its IQF product to carefully
vetted suppliers pending the eventual purchase of its own facilities. In the interim
period, Michael Clemens will be overseeing all subcontracting work done for
Wild Alaska Salmon Direct’s products.
THE PRODUCTS
Overview
Wild Alaska Salmon Direct’s product portfolio consists of the following two
offerings:


Salmon jerky sold in 1 oz packages
IQF (individually quick frozen) salmon
Value added process chain
The company intends on focusing on salmon jerky due to that product’s highervalue added component, and hence, higher margin and selling price.
V
A
L
U
E
Unprocessed Salmon
A
D
D
E
D
P
R
O
C
E
S
S
IQF (individually
quick frozen) product.
C
H
A
I
N
Salmon jerky
Unprocessed salmon
The fish used in all the company’s products will be King, Sockeye, Pink, Keta,
and Coho wild Alaskan salmon. The clear, icy waters of Alaska are the world’s
best supply for wild salmon. All Alaska Wild salmon are born in the state’s
pristine streams, rivers and lakes. They migrate to salt water, where they mature
before returning to the waters of their birth to lay their eggs and continue the life
cycle. Alaskan salmon is known for its bright red color, firmness and wonderful
richness of flavor.
Wild Alaska Salmon Direct fishes and processes only the highest-quality,
sustainable, wild Alaskan salmon. This salmon is healthier than farmed salmon,
as it contains less contaminants, and many health benefits, including:






High in protein
Contains essential amino acids
High in vitamins A, B6, B12 , D, E, Niacin, Riboflavin, Calcium, Iron
Zinc, Magnesium, and Phosphorous
High in Omega 3’s Fatty Acids
Low In Saturated Fats
Significant cardiovascular benefits
Alaska Wild salmon are harvested around the waters of the island of Kodiak,
Alaska during seasonal “runs” between the months of June and September.
Salmon fishing in Alaska is very tightly controlled by the state. A license is
required to catch the fish, and at this time, no news licenses are being granted.
Value-added product: salmon jerky
Wild Alaska Salmon Direct’s focus is the selling of salmon jerky, which is its
highest-margin product.





The company’s jerky has been tested by an independent food laboratory to
ensure that anaerobic bacterial plate count, water activity, etc. are all
within acceptable limits
The Health Department tested the product and granted a permit for its sale
The company’s jerky has been beta tested in several retail outlets to very
positive feedback
Salmon jerky is less readily available than beef jerky, and consequently
has strong growth-potential
The product does not require freezing, and is thus less expensive to
transport since it does not require refrigeration during the shipping process
Value-added product: IQF
IQF (individually quick frozen) product offers a more modest but still attractive
margin than jerky.


These products have the benefit of being relatively common in most
grocery stores so demand is stable and predictable
They are a good option for any fish that is not processed into jerky,
allowing the company to easily balance the supply of their three products
Product price and cost structure
IQF is sold by the pound. Salmon jerky is sold in 1 oz. packages at $3.00 per
package, retail price.
Product
Salmon jerky
Production cost
Wholesale price
Retail Price
$0.50 per pound
$32.00 per pound
$48.00 per pound
IQF (individually quick
frozen)
$0.50 per pound
$1.50 a pound
$12.00 per pound
Salmon jerky offers the highest retail price, as well as the largest opportunity for
differentiation in the marketplace.
It should be noted that Wild Alaska Salmon Direct has a shore based processing
license with the State of Alaska that allows the company to source fish directly
from fishing boats and fishermen at what are called “dock prices”. This means
that Wild Alaska Salmon Direct $0.50 per pound cost represents a minimum
price, and no competitor can produce lower than this price.
Future opportunities
Wild Alaska Salmon Direct has the following potential opportunities for the
future:
1. Cod jerky. Fished in the same Alaskan waters as salmon, but at a
different time of the season, selling cod jerky would allow the company to
extend its fishing season and would thus be a cost-effective extension to
Wild Alaska Salmon Direct product line.
2. Geographic expansion. Wild Alaska Salmon Direct intends on initially
focusing on the South Western United States. Once it has gained traction
there, the company will bring its experience in that area to other markets.
The first geographic expansion would be the Eastern United States,
potentially followed by an international expansion.
THE COMPETITION
IQF product category
There are several large companies—such as Icicle, Trident and Pacific
Seafood’s—that purchase unprocessed salmon, process it into IQF and canned
product, and sell it wholesale to the domestic and international markets. Since
these companies only sell wholesale, they are not considered to be in direct
competition with Wild Alaska Salmon Direct.
Salmon jerky category
The salmon jerky market is a small, developing market, unlike beef jerky which is
a large and mature market. Consequently, the salmon jerky market is highly
fragmented. There is no clear market leader, and this vacuum represents an
opportunity for Wild Alaska Salmon Direct to fill the void and become a prime
mover in salmon jerky food category. For the most part, small, “Mom and Pop”
type of companies dominate the salmon jerky market on the internet, and most—
with the exception of “Trappers Creek”—have little or no retail presence.
Competition focus: Trapper’s creek
“Trappers Creek”, based in Alaska, is one of the few companies that has a
developed presence in the salmon jerky retail market. This company has outlets
in the American North West, specifically in Alaska, Washington, Oregon and
Northern California. They also have their products in some regional Costco Stores
and distributors in those areas. Trappers Creek constitutes the only real salmon
jerky competition for Wild Alaska Salmon Direct.
SALES AND MARKETING
Strategy overview
Sales and marketing will work very closely together in order to drive revenue.
The strategy will be for reps to ensure that Point of Purchase (POP) displays are
placed in high-traffic locations, and for marketing to send potential customers to
those locations in order to garner sales. Sales results will then be shared with reps
and incorporated into the sales script in order to give added credibility to the
brand. As this process repeats and sales increase, the sales script will become
more and more persuasive. The flowchart of this process can be seen on the next
page.
Sales and marketing process flowchart
Sales reps canvass
territory and sell
POP displays.


Marketing drives
traffic to locations
with POP displays.
The sales script is
enhanced with an
even stronger
message.

Sales are registered
at POP display
locations.

Note: all marketing and sales activities would be run out of Wild Alaska Salmon
Direct’s packaging and shipping facility in Henderson, NV.
Message
In order to differentiate the company’s product from other salmon jerkies and
substitute products, a single clear message will be conveyed by both sales and
marketing:
We use only the highest-quality wild Alaskan salmon to produce
the most delicious and healthy salmon jerky you’ll ever taste.
The above statement entails the communication of three benefits:
1. The superior quality of wild Alaskan salmon
2. The superior health-benefits of wild Alaskan salmon
3. The superior taste of the company’s jerky which is imparted by a
proprietary recipe
Marketing
Marketing’s primary objective will be to increase awareness of Wild Alaska
Salmon Direct’s jerky, and to drive traffic to POP display locations and to the
website. All campaigns will initially focus on the local market before being rolled
out nation-wide.
Magazine ads

Advertising will be purchased in “Commercial News USA”, a magazine
that is distributed worldwide to key personnel in companies that are
actively searching for products to distribute.
Coupons

Coupons will be provided to retailers when POP displays are first
installed. Each store will receive a limited number of coupons to attach to
their POP displays in order to encourage “buy to try” purchases.
Digital marketing


Display add campaigns and a text-ad campaigns will drive traffic to the
website from search results and content networks
Banner add campaigns purchased on websites with a close affinity to
salmon jerky will also drive traffic to the website
Sales
Sales efforts will concentrate on two key channels: direct sales and website sales.
Direct Sales
Wild Alaska Salmon Direct plans to market its products throughout the
Southwest—with national expansion planned soon after product launch—by
primarily selling its jerky product through POP displays. Commissioned sales
representatives will canvass locations with a potential for these displays, with the
objective of placing Wild Alaska Salmon Direct’s salmon jerky in as many
locations as possible. The sales team will initially consist of 4 reps.
Website sales
Wild Alaska Salmon Direct’s website—www.salmonnow.com—will be another
key sales channel. Customers will be able to purchase products directly from the
website, and have the product delivered to their doorstep. The site will be “search
engine optimized” (SEO), which means that it will be designed to be searchengine friendly. It will also feature added content such as recipes and health facts
in order to both encourage repeat visits to the site and to help the website’s search
engine ranking. All marketing materials will display the website address.
Sales objectives
The company has the following short-term sales objectives for the period
immediately after its launch:


Sell 20 one oz. packages of jerky per convenience store outlet
Have its salmon jerky available in 500 POP display locations within 4
months
Longer term goals include:


Open 1,000 POP display outlets for salmon jerky
Contract with wholesale distributors to offer jerky in 20,000 retail stores
MANAGEMENT TEAM
Victor Gesmundo, President
Mr. Gesmundo is responsible for the overall day-to-day business administration
of all aspects of Wild Alaska Salmon Direct operations. As the business grows,
he will delegate the administrative aspects of his responsibilities in order to focus
on the company’s marketing and production. He will also oversee a sales
manager and hired sales representatives.
Mr. Gesmundo is an entrepreneur with a strong track record of leading successful
companies. A Vietnam War veteran, Mr. Gesmundo started his first company in
1976 to promote Circus Shows. His company grew quickly, and successfully
marketed and pre-sold shows for the Berosini International Circus Show and the
Shrine Organization for the Hubert Castle Circus Show, throughout the United
States and Canada. In 1982, he started an advertising company in Las Vegas,
which grew to over 100 employees and over 1,500 customers. He has been
involved with the Mortgage and Real-estate business and held a loan officer and
QE license with the State of Nevada. Mr. Gesmundo has expertise in all aspects
of business administration, including marketing, human resources, and operations.
Michael Clemens - Fishing and Processing Operations Manager
Responsible for overseeing the catching of salmon, as well as the processing of
fish in Alaska.
Mr. Clemens has been a professional fisherman in Alaska for over 30 years. In
1980, he purchased his first fishing boat, and since then, he has been a Captain
specializing in salmon seining in the waters of Kodiak, Alaska. He consistently
produces between 500,000 lbs. to 1,000,000 lbs of fish per season, depending on
the strength of the run that year. Mr. Clemens’ strengths lie in his deep
knowledge of Alaskan salmon fishing, his vessels—which were custom-built
under his supervision—and his contacts in the local fishing industry. He has
experience processing and retailing salmon, halibut, pacific cod and crab to the
public market in Anchorage, Alaska.
BOARD OF ADVISORS
Michael Bissonnette - Founder & CEO, Bissonnette Funding
Michael Bissonnette has over 25 years of hands-on, entrepreneurial experience in
the funding, development and marketing of consumer products. He built three
consumer product companies into multi-million dollar businesses—two of which
became sizeable national and international corporations.
Mr. Bissonnette has raised more than $50 million dollars both privately and
publicly for his ventures and clients. He took two of his companies public, and
negotiated the multi-million dollar acquisition of a third. Mr. Bissonnette's
extensive consumer marketing experience encompasses retail sales distribution
and direct-to-the-consumer marketing, including direct mail, radio, television and
long form infomercials. He brings hands-on skill in the use of broadcast media to
his ventures, having conceived, developed and produced his own successful radio
and television commercials.
For more information regarding Michael Bissonnette, visit
www.directpublicfunding.com.
Heinz Lauer - Executive Chef, Culinary Program Chair at Le Cordon Bleu
College
Heinz Lauer is a seasoned, high-caliber, results-oriented food and beverage
management professional with a proven track record of entrepreneurial and
executive leadership in the restaurant industry. A creative thinker with innovative
approaches to achieving organizational goals, Mr. Lauer has the ability to select,
train, motivate and lead productive teams to achieve ambitious goals. He also has
an ability to establish and build solid relationships with clients, vendors and
guests, as well as guide multi-site / multi-unit operations, and prioritize
management functions at both operational and corporate levels.
Jack Cohen, CPA
Jack Cohen has deep practical knowledge of federal taxes. Mr. Cohen had an
exceptional 33-year career at the Internal Revenue Service where he managed
some of the largest corporate audits in the nation. For his work as a manager in
the Large and Mid-Sized Business Division, he was given the David Bernard
Award in 2006, which recognizes the employee of the year nationwide within the
division. Later in his career he accepted the position of Director of Tax and
Accounting at Integrated Tax Solutions, a Nevada company instrumental in
assisting the formation of new businesses as well as minimizing taxes for existing
clients.
Mr. Cohen leads a team of professionals with many years of tax preparation
experience. He also represents clients in front of the Internal Revenue Service
and other taxing authorities. He is an actively licensed CPA in Nevada,
Pennsylvania and New Jersey.