Chile: BluGlacier’s CEO, Sebastián Goycoolea, stated to Salmonexpert that the national product is far from reaching its ceiling in the U.S. market.
By Jonathan Garcés
The U.S. is the main market for Chilean salmon, and, despite its maturity, there are still growth opportunities for national companies. BluGlacier knows this, a joint venture made up of Ventisqueros and Blumar, which projects to expand its billing by 30% during 2018, exceeding US$ 260 million, and 43% of its sales volume, recording 50 million pounds (22,700 tons). This is in comparison to what was noted during 2017.
In an interview with Salmonexpert, BluGlacier’s CEO, Sebastián Goycoolea, stated that the above has to do “with the harvest volumes of our parent companies Ventisqueros and Blumar, where the latter has had a strong increase in its production compared to 2017”.
How will the Chilean salmon marketing campaign help in the U.S.? Is it enough?
I believe that as an industry we have a great debt in terms of promoting massively and permanently both salmon as a protein and Chile as a reliable origin of excellent quality. The campaign being put together for the U.S. will be of great help in having a focused and specialized platform to disseminate a consistent message regarding the benefits of salmon and to position Chile as a top-quality origin.
It will take time to see the results, but I believe it is imperative to do so, because many consumers in the U.S. don’t even know where Chile is, the country that supplies more than 50% of Atlantic salmon consumed in the country.
Has the image of Chilean salmon improved in the U.S. recently or has it remained the same?
I think that, in recent years, with the stability achieved in production after the 2016 algal bloom and less frequent supply cuts caused by climatic factors or strikes, Chile has improved its image as a supplier. On the other hand, the market recognizes the advances that have been made in reducing antibiotic use and improving the sanitary condition of the industry, with the antibiotic issue being, indeed, one of the greatest challenges we face as a sector to compete head-to-head with other origins such as Norway.
Does Chilean salmon not have a clear image in the U.S.?
I don’t believe that Chilean salmon doesn’t have a clear image in the U.S.; it is by far the largest supplier of Atlantic salmon in this country and is present in virtually all supermarket chains and restaurants in the market.
What is lacking is that many end consumers recognize Chile as the country of origin of salmon and have a clearer image of the country, for which the marketing campaign will play a fundamental role in this dissemination.
What is the current share of Chilean salmon in the U.S.? Has the national product reached its ceiling in this market?
Chilean salmon’s market share has recently ranged between 50 and 60%, but it is far from reaching its ceiling in this market, which has low per capita consumption and is increasing year after year. In 2018 alone, the volume of Atlantic salmon entering the U.S. is about 10% higher than the volume at the same date in 2017, which shows that there is much room to continue growing in the U.S.
We hope that the new pre-packaged fresh salmon sales formats that emerged about three years ago will have a strong impact on consumption by making purchasing easier for customers, and as well, today we find salmon in all types of restaurants from fast food to the most upscale ones
— Sebastián Goycoolea.
How are U.S. retailers receiving Chilean salmon?
Since Chile is the main salmon supplier, the retailers receive it in very good form, and they appreciate the supply stability that has been achieved in recent years, which brings with it price stability that varies more by consumption seasonality and not by lack of supply.
The prices we have seen in recent years allow retailers to also maintain their shelf prices at levels that are reasonable for the end consumer.
Will Chile be able to compete adequately in the U.S. market, considering the new regulation that does not tolerate production growth above 3%?
In general, all salmon-producing countries are facing limited growth of around 5%, which is well aligned with the increase in annual salmon consumption worldwide, allowing for stability in supply and prices. I believe that whenever Chile had unbridled expansions above 10%, the results, both sanitary and price-related, put us in a risky situation as an industry
