Ensuring A Future Market For Shellfish

Ensuring A Future Market For Shellfish • Introduction • Source To Plate • Product To Consumer • Via Branding • Ensuring The Future Market • The Loch Fyne Brand • Integrated Strategy • Loch Fyne & Shellfish • Sourcing Philosophy • Oyster Strategy • Mussel Strategy • Critical Success Factors • Summary

Ensuring The Future Market • Consumer Demand • Segment & Target • Aging Population • Over 50’s Wealth • Varied Tastes • Destination Consumers

TRENDS IN SEAFOOD - CONSUMER ATTITUDES (Mintel research 06) • 36% of population believe they should eat more fish • 34% SUBSTITUTING FISH FOR MEAT • 24% like fish but don’t like to cook it at home • 35% ARE MORE LIKELY TO EAT DIFFERENT TYPES OF FISH COMPARED TO 1 YEAR AGO • 62% say fish is the best way to consumer Omega-3 • 91% increase in salmon consumption by males aged 17-24

MINTEL ANALYSIS • 2006 – FISH OUTSELLS CHICKEN FOR FIRST TIME - WAITROSE • Forecast 35% growth in UK seafood sales between 2002 - 2011 • Retail sales - value growth 2x volume growth - price not an issue? • PROVENANCE – MAJOR ISSUE IN RETAIL – PUSHED BY MEDIA • Alternative species should be championed • SINGLE MOST IMPORTANT SHIFT & BIGGEST MOVEMENT IN ANY FOOD SECTOR IN RECENT YEARS = SUSTAINABILITY

UK POPULATION TRENDS • Overall population to increase 4.2% 2000-2010 BUT over 65 population to grow 14.5% in same period • Over 65s = 16% of population WILL BE 23% by 2031 • Over 85s - new record 1.2 million • Population age (median) 38.2 years - was 34 in 1975 • Over 65s have 80% of wealth

WHAT DO OUR CUSTOMERS THINKTopline from 2006 survey QUALITYOF FOOD MOST IMPORTANT FACTOR + SCORES HIGHLY SERVICE comes next - relaxed, friendly - liked by most BRAND - seen as guarantee of quality, provenance FISH - LFR = Fish. 35% customers are fish lovers 80% - eat fish at least once a week AVERAGE customer eats at LFR 3-5 times a year (8-10% of all meals eaten out depending on site/city) SUSTAINABILITY IS ‘VERY IMPORTANT’ TO 60% OF OUR CUSTOMERS NEWFISH VARIETIES: OVER 80% INTERESTED IN TRYING NEW, ENVIRONMENTALLY FRIENDLY VARIETIES FEW use restaurant guides - local and national press influential

ETHICAL CONSUMER HEALTHY EATING GROWTH IN SEAFOOD AGEING POPULATION NEW MEDIA SITE DIVERSITY Increase profile of Loch Fyne as an environmental pioneerBUT keep sense of humour Continue to talk up health benefits of fish in comms Opportunity to experiment - Ugly Fish, Seafood Week Early birds, loyalty, groups Interact with customers, targeted promos, web innovation Trial promotions, ‘site’ profiles and site specific activity MARKETING CONSIDERATIONS

Meeting The Demand • Effective Route To Market • Satisfy The Target Consumer • Quality • Variety • Service • Provenance • Sustainability • Environment • Branding Is Critical • Reassurance • Security • Value CONSUMERS BUY BRANDS NOT PRODUCTS

THE LOCH FYNE BRAND Our Brand Values • Quality • Sustainability • Provenance • ‘Local’ • Service

Integrated Strategy Forward Integration Own LF Retail Contract GF Partners Premium Retail & Food Service Backward Integration Shellfish Fresh Fish Meat BRANDING LOCH FYNE Own Products • Aquaculture • Smokery

Loch Fyne & Shellfish • Sourcing Philosophy • Own Products Philosophy • Oyster Strategy • Mussel Strategy

Critical Success Factors For The Future • Supply • Quality • Food Safety • R & D • Training / Recruitment

SUMMARY • Trends All Positive • No Compromise On Quality • Sustainability Is Here To Stay • Branding Is Key • Effective & Efficient Route To Market • Profit In The Supply Chain Is Essential • Long Term Future Depends On A Joined-Up Approach • Competition Will Be Aggressive BUT Heritage & Quality Will Prevail

Ensuring A Future Market For Shellfish