reLAKSation 378. Callander McDowell
Joyeux Noël: Fishupdate.com reports that Label Rouge Scottish salmon has starred in a prestigious national culinary competition in Paris to crown the best student chef in France. Michel Blanchet, president of the Master Chefs of France said “our aim is to promote quality, tradition and the finer things of life. It is for these reasons that we selected Label Rouge Scottish salmon as our trump card”. He said that “its texture, the delicate flesh and unrivalled flavour make it the perfect ingredient.”
Scott Landsburgh, Chief Executive of the Scottish Salmon Producers’ Organisation added that ‘France has the reputation for the best food in the world and its top chefs have chosen a Scottish product. In 2007, more then 1.3 million Label Rouge Scottish salmon were exported to France.
We, at Callander McDowell, appreciate what a major accolade it is for Label Rouge Scottish salmon to be recognised in this way. We are therefore somewhat reluctant to report that at the time that this story appeared, our researcher was actually in France looking at the retail salmon sector and whilst Label Rouge Scottish salmon may be highly regarded in the French market, he had great difficulty in finding it in any of the major outlets.
It might be suggested that perhaps stocks were low at the time of this visit or that he simply looked in the wrong places however Callander McDowell have now been recording the French market for salmon for the last five years and are in no doubt that we document an accurate picture of salmon in the French retail sector and that if we didn’t see any, it is because it is not there.
Finding Label Rouge Scottish salmon in the retail sector was not always so difficult. At least two supermarkets used to sell Label Rouge Scottish salmon from the fresh fish counter with one of these also selling prepacks. Another four supermarkets also sold Label Rouge Scottish salmon in prepacked form. Callander McDowell currently monitor thirteen different store groups and Label Rouge Scottish salmon can be found in just one. This is in prepacked form and not from the fresh counter. By comparison, Label Rouge Norwegian salmon can be currently found in two supermarket chains.
The decline in availability of Label Rouge Scottish salmon in the leading French retailers has been steady and we believe that its disappearance from these stores is not the result of the credit crunch, but rather reflects the changing food purchasing of French consumers. As Michel Blanchet suggests, his organisation, the Master Chefs of France, promotes the finer things of life. This may be relevant for a special occasion but most consumers just buy food for everyday meals so the standard salmon that is readily available in every store makes just as fine eating. and for a value for money price. In addition, consumers have not been able to distinguish sufficient difference between standard salmon and that carrying the Label Rouge mark to warrant paying the higher price and have therefore opted to buy the cheaper standard salmon for most of their meal choices. This may be in part because they don’t buy salmon often enough to identify subtle differences.
This reluctance to splash out on Label Rouge Scottish salmon is reflected in the volumes now exported from Scotland. Regular data of Label Rouge exports to France is not published but in 1997, exports were reported at 2,493 tonnes rising to around 5,000 tonnes in 2002. Scottish Quality Salmon later reported that in 2003 exports were 5,592 tonnes and 6,761 tonnes in 2004. In 2005, Ernst & Young, reporting on the then state of the Scottish industry estimated Label Rouge exports of around 7,000 tonnes.
The data published last week describes the volume in terms of numbers amounting to 1.3 million fish. Taking an average of 4-5kg for each fish, the total volume would range from 5,200 to 6,500 tonnes. Thus it can be seen that over the last five years, exports of Label Rouge Scottish salmon have not grown even though the total market for salmon in France has. Label Rouge Scottish salmon should be recognised as a small niche market and one which appears to be declining in terms of the whole market.
It might be argued that the disappearance of fresh Label Rouge Scottish salmon from the main retail stores is more an indication that Label Rouge Scottish salmon is now sold through more discerning outlets and it is true that Label Rouge is now more likely to be sold through independent fishmongers rather than the retail multiples. However, in France, like in some other countries, independent fishmongers do not appear so rigorous about labelling the fish they sell, so it is difficult to tell exactly what they are selling. For example, we have seen fishmongers sell whole Norwegian salmon alongside portions that are marked up as Label Rouge Scottish salmon.
Whilst there is no doubt that independent fishmongers do sell Label Rouge Scottish salmon, it is unlikely that they are responsible for selling all of the 5-6,000 tonnes of fish exported to France. We believe that the decline in the presence of Label Rouge Scottish salmon in the retail multiples is probably reflected with a similar decline across the whole market. It is therefore likely that total exports would be exhibiting a similar decline but Scottish farmers have been fortunate in that they have benefited from changes in legislation that have actually resulted in an increase in demand for Label Rouge Scottish salmon rather than the expected decline.
French consumers have also been able to buy Label Rouge smoked salmon as well as Label Rouge fresh fish. Until recently, the smokehouse required certification to produce Label Rouge smoked salmon and it wasn’t necessary for the fish to be produced to Label Rouge standard too. Any salmon could be used in the processing of Label Rouge smoked salmon but changes now mean that the fish destined to be smoked into Label Rouge smoked salmon must also be Label Rouge certified. This has created a whole new market demand for Label Rouge Scottish salmon and a life-line for Label Rouge production in Scotland.
Label Rouge salmon, whether fresh or smoked, does sell at a premium price as there are clearly some consumers who are prepared to pay the difference to buy this level of perceived quality. The SSPO website suggests that the difference can be as much as 25% although we have seen higher. Although the volumes are relatively small, it is clearly worthwhile for farmers to produce fish to Label Rouge standard. The level of Label Rouge exports since 1992 is clear proof that it is a niche market and not really representative of the Scottish industry as a whole.
We believe that it will be a real struggle to expand the market for this prestigious Scottish salmon. Certainly, it will take more than a student culinary competition to persuade French consumers to buy more of Label Rouge salmon from Scotland. However, we appreciate that the small volume of Label Rouge production means that there is an extremely limited budget available to promote the fish to French consumers. A few months ago we saw evidence of what marketing has been undertaken with a promotional campaign in fishmongers entitled ‘Its taste is legendary’.
Gallic Jamie: In reLAKSation no 364, we discussed the gastronomic image of French cuisine promoted by comments made by ex Marine Harvest chief Atle Eide who described the French ‘as the worlds’ most demanding consumers.’
Last month, the Observer newspaper reported that a young chef with a floppy boy-band fringe and a strong southern twang will be back on television screens in an attempt to save the nation’s cuisine. Millions are expected to tune in to watch him create his latest dishes and lecture his fellow countrymen on the benefits of healthy eating. The Guardian says that he may sound familiar to British viewers who are used to campaigns on school dinners and community cooking but this chef is not Jamie Oliver but rather French celebrity chef Cyril Lignac and according to the Observer, the ‘overweight ignorant country’ whose food he is trying to salvage is France.
M. Lignac says that it is time to act. He said that he wanted to see how the French feed themselves and what he found was that they eat badly and can’t cook. The truth hurts for the nation that gave the world coq au vin and confit de canard but the truth is that many thirty and forty somethings have come to realise that they have no idea what to do in the kitchen. This is blame on a generation of women who stopped passing down their cookery skills to their children. This has led to a whole section of society who has embraced fast food leaving the multi course feast to their grandparents.
The New TV series begins with M. Lignac visiting a factory in the industrial north and trying to wean the workers off a diet of lunchtime pizzas and microwave meals. However, whilst Cyril Lignac is now hailed as a culinary crusader, we at Callander McDowell wonder whether there is a case of double standards.
M Lignac may be trying to teach people how to cook a good meal even if they don’t have two hours to spare, but it could be said that he is also responsible for encouraging the consumption of microwave meals. He has lent his name to seven frozen ready meal products including one made with salmon, which are available in several French supermarket chains.
Quick quick slow: Last month, IntraFish reported that the French market for salmon is slowing down but at the same time, they also reported that the volume sold has gone up. It seems that the market data can be interpreted in more than one way. The French market grew by 13.5% in the year to March 2008 but at the same time prices dropped by 9%. However, according to Johan Kvalheim of EFF consumption then fell by 6% in the period August to October as prices rose by 3%.
Mr Kvalheim told kyst .no that the credit crunch is unlikely to have little effect on salmon sales. According to IntraFish, he thinks that it may even have a positive impact on sales as more people are eating at home and they will opt for fish that is easy to prepare such as salmon. We, at Callander McDowell, are not so sure. More people may be eating at home but it doesn’t necessary follow that they will be cooking meals as Cyril Lignac would hope. It doesn’t even follow that they will chose fish as opposed to some other protein or even frozen pizza and such like. We have always argued that consumers who don’t buy, cook and eat fish are unlikely to suddenly start doing so just because of changes to their economic situation etc.
We appreciate that exports of salmon to France have not seen any significant decline and may have increased but still we believe that the retail salmon market is somewhat depressed and has been since the imposition of the MIP when salmon prices soared. Prior to 2006, supermarket fish counters were a ‘sea of pink’. Salmon dominated displays. It offered good value for money and consumers readily bought it, often in favour of other more traditional species. When counters used to offer salmon as a choice of whole fish, fillet, pavés and steaks, they now are more likely to just stock the pavés. However, in the run up to Christmas, whole salmon is beginning to make a brief return.
Salmon was also used in all sorts of added value products including ready meals, both chilled and frozen. It was also smoked into a mind-boggling array of smoked salmon. Our researcher remembers being stunned by the number of products that had to be recorded when he first began surveying the French market.
However, after 2006 the picture changed and is much the same today. The sea of pink on fish counters evaporated leaving salmon mixed in with other species and no long the distinct market leader. The same applies to added value products. For example, the range of salmon ready meals has almost disappeared laving a handful of core products. Finally, the offering of smoked salmon has shrunk markedly leaving own label and a couple of branded ranges. Salmon in France is simply not what it once was.
Even Christmas is unlikely to bring much respite. The mood of the salmon market is reflected in the Christmas offerings. Packs of smoked salmon used to dominate the Christmas displays but now they seem to be taking more of a back seat. The smoked salmon sector seems to be in the doldrums with a distinct lack of innovation. Christmas is the time when the large packs of smoked salmon appear. The largest we have seen this year is 1.08kg but all sizes are available. The common theme to all is the Christmas offering of between one and four extra slices free depending on the size of the pack. However, even though the packs include a give away most, if not all, cannot be described as festive packs being much the same as those used the rest of the year.
What has changed this year is the appearance of smoked salmon from a wider range of origins. Smoked salmon used to be made from salmon from Norway, Scotland or Ireland. Now a whole range of other sources have emerged including Denmark, France, The Baltic, Patagonia, Canada and increasingly Wild Alaskan. What the difference is between these packs remains unclear but we are sure consumers are likely to be confused.
Mr Kvalheim notes that the market grew when the price dropped and shrunk when it rose. The fundamental problem is that salmon is no longer attractively priced and consumers are choosing to buy other meal choices instead. Having said that, whole salmon can be bought in France at €4.90/kg, which at the old exchange rate, is comparable to current promotional prices in the UK. Yet, we also recorded salmon portions in prepacked form selling at nearly €30/kg, which is expensive.
The size of the market for Label Rouge Scottish salmon shows that there are consumers willing to pay a high price for the salmon they buy but most simply look for cheaper options. If the industry wants to expand the market, then it needs to look at how more salmon can be converted into the type of products that consumers would prefer to buy. It maybe that salmon could be currently a little too expensive to do this cost effectively.
Our 100 plus page survey of the French retail market will be available from the beginning of January. It covers everything from fresh to frozen; plain portion to ready meals and of course smoked salmon. The survey is colour coded for ease of reading and highlights new products and presentations as well as price changes, both up and down. Please contact Callander McDowell (office@callandermcdowell.co.uk ) for details.