Throughout the years, this key pillar was made of smoked fish, mainly smoked salmon and herring. This has changed considerably recently, as product development, innovation and successful operations have led to diversification of this pillar. Alfesca is now a significant player in three new product categories which are cooked salmon, marinated salmon and ready-to-cook fish. Overall this pillar accounts for about 45 % of Alfesca’s total turnover.

Alfesca operates six well-invested fish factories through its subsidiaries in three countries. The company produces and distributes smoked salmon and other fish products under the key brands Labeyrie, Delpierre, Skandia and Farne, and is also the biggest retailer-branded smoked salmon producer in Europe. The good success of new concepts launched in the new categories of cooked salmon, ready-to-cook fish and marinated fish have revived and strengthened this pillar. The new products are in line with consumer trends for festive, convenient and healthy foods.

Furthermore, the trend in the salmon market (and other Alfesca categories) is driven by a generation of “cash-rich, time-poor” people who are seeking treats and premium food with an emphasis on convenience, health, and fine foods for special occasions.

Market trends

Consumer demand for smoked salmon has been growing nicely everywhere in Europe, a sign that despite slow consumer demand in the food market since last summer, the demand for festive food is growing.

France, where Alfesca operates two companies, is still the largest market with more than 25,000 tons sold in the various outlets, mainly modern distribution and catering. France experienced a growth in value of 4.9% during the period.

The smoked salmon market in the UK is the 3rd largest in Europe after France and Germany, with around 10,000 tons. Whereas the French market is segmented by origin (Norway/Scotland/Ireland/Alaska) the UK market is exclusively concentrated on the Scottish origin. Growth experienced was good, with an increase in sales of 6.1% over the period.

In the Spanish smoked salmon market, a country where seafood products consumption is the highest in Europe, the trend is moving away from the brands and more to the private labels.

Consumer demand for herrings and cod has been growing, but at a lower pace.

In addition to the good demand for fine food, our sales of value added fish also benefited from the market orientation towards healthy eating; fish, particularly salmon and herrings because of their high OMEGA 3 content, clearly fit in with this consumer trend.

Consumption of ready–to-cook fish has been booming, with consumer demand for easy-to-cook products growing from year to year.

Outlook

Despite continuing difficulties in the economic climate, Alfesca’s salmon and fish business is well positioned to face up to the challenges and deliver sustained, healthy growth. This is based on Alfesca’s companies continually innovating ahead of their competitors and on strong operational performance.

At the top of this year’s agenda will be the development of our smoked salmon activities in Europe with a large spectrum of offers, starting with the core market products specially designed for daily consumption, both under our own brands and the large portfolio of retailer brands that we are processing and launching in the premium end of the market, where Labeyrie is the undisputed leader.

But we are also placing considerable hope in a new product range for wet fish counters in our three key countries; UK, France and Spain. The ready-to-cook fish, a range that fits perfectly well with the developing trend of a healthy and convenient food diet.

In summary we are confident of our ability to develop this pillar in the coming year.