Huon Aquaculture Group Limited Annual Report 2017 | About Us | Grow

GROW

THE MARKET THROUGH INCREASED CONSUMPTION, OPTIMISED CHANNEL MIX AND ENHANCEMENT OF SALES AND BRAND VALUE.

  • Newly launched Premium Gin and Kaffir Lime Cured salmon
  • Newly launched Premium Thai Lemongrass Wood Roasted salmon
  • Fresh salmon fillet
  • Reserve Selection salmon caviar (left)
  • Masaki Kayama making fresh salmon ngiri
  • Versatile Wood Roasted salmon
  • MAP/chilled packaged salmon
Consumption of Salmon Chart

Optimised channel mix

Balancing Huon’s channel mix has been a strategic objective for the business for some time. The wholesale and export markets have been the primary channels through which the majority of our production has been sold in the past. The retail market has rarely accounted for more than 10% of total sales. However a key development at the beginning of the year was the execution of new sales agreements resulting in 23% of production volume being directed into the retail market.

While the wholesale market will continue to be Huon’s primary sales channel, we now have a better balance in relation to sales through both the retail and export markets which provides a level of certainty in planning future production.

Consumption of Salmon Chart

Increased consumption

The domestic salmon market has been averaging growth of around 10% p.a. over the past decade and this rate is expected to continue in coming years due to increasing cost of other proteins relative to salmon, stagnation in wild caught seafood supply and healthy eating trends. Average per head consumption of salmon in Australia is around 1.9kg, well below other developed countries such as France, UK, Germany, Belgium and Holland (2.1–3.2kg) and 6.3–8.3kg for Scandinavian countries. A big part of rapid market growth in those countries in recent years has been in the fresh modified atmospheric packaging (MAP) salmon market.

Huon has been supplying the MAP/chilled packaged salmon market in Australia for the past 5 years and is well placed to take advantage of the growth potential offered by this segment, based on trends offshore. Huon currently supplies an estimated 47% of the Australian chilled packaged salmon market.

Brand value

Huon branded salmon is available in pre-packed, MAP, frozen, smoked or cured formats in over 2000 retail outlets across the country including Coles, Woolworths, Aldi, Costco and independent retailers. The Huon name is also displayed proudly on countless restaurant and food service menus throughout Australia as a signifier of superior quality and pride in provenance.

In addition, our salmon can also be bought under the Coles, John West, Almare and Created With Jamie (Woolworths) private label brands.

Continued focus will be placed on differentiating the Huon brand from generic Atlantic salmon in the market (both domestic and imported) in the coming year to ensure that consumers, as well as wholesalers and chefs, understand the quality promise that comes with the Huon name.

   ...Previous
Continue...   
Powered by First Advisers | Investor Relations, Financial Media, Corporate Governance Powered by EZOnlineDocuments
Powered by First Advisers | Investor Relations, Financial Media, Corporate Governance Powered by EZOnlineDocuments
WARNING: JavaScript is disabled. CLICK HERE for help.
  • Go to previous page
  • Go to previous page
Page 4 of 99
  • Go to next page
  • Go to next page