2009/770 Retail transformation chilled pre-packaged seafood category development

By Paul Graham and Evan Douglas

AC Nielsen described the chilled pre-packaged seafood market as Australia’s second fastest growing supermarket food category in 2009. This was a reflection of a consumer choice for supermarket shopping and the desire for a range of convenient and accessible seafood products. Despite huge investment in this category over a number of years (by retailers and processors) the category was not profitable.

A CRC project was initiated to develop a range of chilled pre packed Australian seafood products and test them in a supermarket. In addition, an Australian Seafood Manufacturing Scheme (ASMS) was to be developed in order to standardise the food safety management systems needed for this category and provide insight into how to effectively implement them. Work undertaken included consumer research, product development and manufacturing capability development.

Key findings of the research included: consumer interest and intention to purchase from pre packed seafood is strong; pre packed seafood overcomes key ‘deli’ barriers to purchase; the look of the category at point of purchase is key to success (packaging, in store location and point of sale); understanding and meeting consumer price points and pack sizes is critical; species choice is first decision made when selecting product; Australian origin species are in highest demand; products must not be highly processed; and trust, transparency and freshness are the heart of the pre packed proposition. The research findings indicated that the major brands and retailers in the category were not meeting the needs and expectations of the consumers who wanted to shop the category.

Based on the research a potential product range was developed by an experienced product development specialist. This was complemented by a category management plan and agreement (subject to arranging a suitable commercial deal) with a retailer to trial the range.