Baby Boomers, Health, Ethnic Trends
Help Spur Frozen Seafood Innovation
By SHARON J. WISHNOW QFFI Correspondent

Tempura Shrimp from SeaPak go from freezer to table in five minutes, offering consumers convenience at home, as well as novelty.

Per capita consumption of fishery products in the United States is at an all-time high, yet is still far behind that for other proteins. Innovative frozen products, offering convenience as well as quality and variety, provide the best chance to overcome consumer resistance.

Something fishy is going on in US households, and seafood producers hope it’s catchy. Fish and seafood consumption was up by 4% per person for a record 16.3 pounds of fishery products finding its way onto dinner plates last year, according to the National Oceanic and Atmospheric Administration (NOAA).

This number is scant compared to the United States Department of Agriculture’s figures for poultry at 70 pounds, beef at 65 pounds, and pork at 50 pounds per person. But seafood is fighting against a reputation for being expensive, hard to cook, and hard to store. Only now, the tide seems to be changing.

Frozen seafood producers – many of whom will be exhibiting at the International Boston Seafood Show March 13-15 – are updating their recipes and packaging as well as tapping into demographic, diet and ethnic trends that are proving that their products will be the protein of the future. John Connelly, president of the National Fisheries Institute (NFI), recently summed it up this way:

“The seafood community, from harvester through processor and retailer, is becoming increasingly ‘customer-centric’ and providing the variety of taste and preparation options that American families demand. Whether it be a marinated salmon with a pop-up temperature timer, or helping consumers identify faster and easier ways to prepare catfish, the seafood industry is finding ways to help busy families.”

Most major grocery stores have a selection of fresh seafood, but the majority of new consumers trying seafood head for the frozen food aisle. Sales of frozen seafood, according to Chicago-based Information Resources, Inc. (IRI), were up 4.6% to $1.5 billion for the 52-week period that ended October 3, 2004. Shrimp reigns supreme as the favorite frozen seafood, in part because it’s readily available, mild tasting, quick cooking, and adapts to a variety of recipes and flavors.

Rich Sea-Pak is a major innovator on the frozen shrimp scene. Though the St. Simons Island, Georgia-based company’s sales for the 52-week period described above were down almost 10%, the numbers are still impressive with receipts topping $44 million. Products include favorites such as Popcorn Shrimp and new items including Oven Crunchy Coconut Shrimp and Tempura Shrimp that go from the freezer to the table in five minutes.

Another high-profile player in the shrimp sector, now entering the convenience meal market, is San Pedro, California-based Contessa Food Products. Last February it launched a new line of portion control Minute Meals. The company says that by following the FDA’s pre-portioned serving standards, Minute Meals take the guess-work out of maintaining a healthy, well-rounded diet.

Four seafood varieties are currently available: Shrimp Arriabita, Soy Ginger Shrimp, Seafood Lasagna, and Shrimp Penne. Contessa also offers a line of large package convenience meals that include eight seafood recipes: Shrimp Primavera, Shrimp Mediterranean, Kung Pao Shrimp, Shrimp Stir Fry, Sweet and Sour Shrimp, Fajita Shrimp, Paella with Seafood and Chicken, and Shrimp Santa Fe.

Manufacturers and trend watchers point to growing Hispanic and Asian populations that have seafood eating habits, plus aging baby boomers looking for healthier food choices as sources of growth. Julie Chmielewski, a food and beverage analyst for Find/SVP, reports that frozen seafood manufacturers are trying new flavors and packaging products so that they are easier for consumers to use. She says that seafood is becoming more mainstream and that nine out of 10 Americans between the ages of 25-54 are eating seafood.

Chmielewski also noted that positive health reports about seafood and expanding freezer space in stores across the country are helping to drive sales forward. Many times fresh and frozen fish are placed next to each other, so when shoppers are considering fish the choice is often made for frozen products since they are already prepared and take the guess work out of cooking and storing. She added that consumers can expect to see more ethnic flavors and portion-control items to fit personal eating habits.

The company leading the armada in sales and product innovations may well be Gloucester, Massachusetts-based Gorton’s. Sales for the 52 weeks ending last October 3 were $192 million, up 8.4%. The company, and its brand icon the Gorton’s Fisherman, date back to 1849. It is one of the most recognized images in the seafood industry. Gorton’s is the first national seafood player to reformulate its entire line to offer trans fatty acid-free products.

Grilled fillet meals are the latest thing from Gorton’s, which has also removed trans-fats from its entire line.

In early 2006, the FDA will require that nutrition tables on all processed foods list the amount of trans-fats they contain in addition to the breakdown of saturated and unsaturated fat. According to Judson Reis, vice president of marketing, Gorton’s made a large capital investment in new equipment and worked to reformulate all 53 of its products. Each of the newly reformulated fish items was available in grocery stores by mid-October of 2004, and all updated packaging to highlight the nutritional benefit was to be visible by January 2005.

Gorton’s is very much reaching out to the growing baby boomer market. That’s because research and sales confirm that as people age they eat more seafood.

“As baby boomers become increasingly health conscious, they are listening more and more about how to prevent – not just treat disease,” agreed NFI’s John Connelly. “Doctors, dieticians and other medical professionals are encouraging Americans to eat fish twice per week because of all of its health benefits. The seafood community is the natural beneficiary of the baby boomers becoming more interested in a healthy lifestyle and diet.”

Gorton’s recently introduced two new Grilled Fillet Meals – Alfredo and Lemon Herb – which sell for about $4 each. The Alfredo dish is being marketed as having only 14 grams of carbohydrates. “Grilled Fillet Meal is a smart, healthy food option that takes less than seven minutes to prepare, offering convenience to eat any time on the go,” Reis said. “And the great thing about grilled foods is that they’re naturally flavorful, and naturally healthy.”

Mahi Mahi portions with Caribbean style pepper sauce are new from Phillips Foods, known better for crab cakes.

In September, the Food and Drug Administration (FDA) announced a qualified health claim for reduced risk of coronary heart disease for those consuming foods that contain EPA and DHA omega-3 fatty acids. Both are found naturally in oily fish such as salmon, trout, tuna and herring. Though these acids are not essential to a healthy diet, studies show that they can be beneficial in reducing heart disease.

Gorton’s is promoting its grilled salmon fillets as a delicious way to incorporate salmon and heart-healthy omega-3 fatty acids into the diet. This product, like the grilled fillet meals, is also ideal for couples looking for a quick dinner and wanting single-serving, portion control options priced reasonably.

But, if you think that Gorton’s is getting out of its core business of kid- and family-friendly battered fish, fear not. The leader in the flavored fillets segment has come out with Beer Batter Fillets, which Reis calls “the next mainstream flavor.” Beer batter is becoming more prominent on restaurant menus across the USA and consumers are highly aware of the beer batter fish concept. This product is priced at around $4.99, and can be prepared in less than 30 minutes.

Another company coming on strong with a 13.5% increase in sales last year is Baltimore, Maryland-based Phillips Foods, Inc. Ann North said that the company’s goal for the past 10 years was to become more integrated at the retail level. She went on to note that while in the past Phillips had to convince and teach many retailers how to sell their products, operators have since mastered the skill and are now looking to Phillips for more products as demand for seafood grows.

Consumers feel that it’s hard to “mess-up” a frozen meal. When asked about the higher price of Phillips products, North said that many folks shopping for seafood are willing to spend more for quality products. She admitted that higher product costs may push new customers away, but added that because Phillips has been around for such a long time and has a strong brand identity for quality, sales remain strong.

Maryland-style Crab Cakes represent the kind of frozen seafood specialty products that Mama Shaw’s supplies to major seafood restaurant chains – and also to supermarkets and club stores.

The company typically introduces six to 12 new products each year. Though best known for crab, Phillips is expanding into other seafood products. Currently the line features crab cakes, dips and soups. Early in 2004 salmon cakes were rolled out. The four-ounce offerings are a blend of salmon with capers, dill, onions, celery, breadcrumbs and lime. Also introduced was a new crab and shrimp cake, made with blue swimming backfin crab meat, shrimp, roasted red pepper, celery, onions, and Phillips’ own seasonings.

Most recent was the debut of a crab and shrimp spring roll, coconut mahi mahi portions, and buffalo shrimp. These new products, two of which fall into the appetizer/snack category, take advantage of consumer trends for more ethnic flavors and ease of preparation.

Phillips’ success from restaurant to retailer is part of another trend that Find/SVP’s Julie Chmielewski has noted. That’s the increase and popularity of seafood restaurants.

Shaw’s Southern Belle, maker of the Mama Shaw’s line, is a major producer of prepared seafood items for the Darden Restaurant group, the company that owns Red Lobster, Olive Garden, Bahama Breeze and other popular chains. Consumers who order seafood in the restaurants can also find these products in supermarkets and club stores, as Mama Shaw’s offers a line of frozen crab cakes and appetizers.

Shrimp Burgers, the most popular of a line of seafood burgers from Omega Foods, are a dream come true for people who have problems with fat – or gluten or dairy ingredients.

The idea of taking the guesswork out of fish preparation and providing restaurant quality products seems to be the seafood industry’s new mantra. Brockton, Massachusetts-based Fairfield Kitchens produces the Boston Chowda Company’s award-winning New England Clam Chowder recipe along with Rockport Lobster Bisque, Cajun-style Orleans Shrimp and Sausage Gumbo, and Charleston She-Crab Soup. The frozen soups come in 20-ounce heat-and-serve containers.

“From boat to throat” is how Seattle, Washington-based Aqua Star’s Toby Davidson describes her company’s production philosophy. She says that seafood offerings are becoming more sophisticated, and waste-free.

Salmon fillets are one of Aqua Star’s new products, and it’s a big growth item. “It’s great for people watching their weight and people trying fish for the first time,” said Davidson, who added that Aqua Star uses only wild caught salmon, citing consumer awareness around sea-caught versus farm-harvested product.

Delicately seasoned Breaded Scallops are available in supermarkets under the Sea Cuisine label from Fishery Products International.

Portion control and ease of cooking is leading the success for Eugene, Oregon-based Omega Foods’ seafood burgers. “Our consumer research showed that everyone is familiar with burgers and can cook one,” commented Lisa Baker, company spokeswoman. So Omega developed its product line based on ease of cooking and familiarity.

The company offers four seafood burger varieties – made from salmon, mahi mahi, tuna and shrimp. The salmon burger, which is produced without fillers and binders, is the most popular item in the range. It has been formulated to taste as close to a whole fillet as possible.

Danvers, Massachusetts-based Fishery Products International, Inc. has come out with Sea Cuisine Breaded Scallops. The restaurant-quality product, which takes just minutes to prepare, is distributed in 226g retail packs

Fish has always been touted as brain food and it seems that producers are thinking harder and developing smarter strategies to turn their offerings into the consumer-friendly products that will tap into a greater portion of the billions of dollars spent annually on ready-to-cook convenience products in the United States.