Establishment of the North American Mussel Council

Final Report
Prepared by:

Canadian Aquaculture Industry Alliance
P.O. Box 81100, World Exchange Plaza
Ottawa, ON, K1P 1B1

Submitted to:

Aquaculture Management Directorate
Department of Fisheries and Oceans
200 Kent St.
Ottawa, ON, K1A 0E6

 

 March 31, 2009

Table of Contents

• Background
• Role of CAIA
• Results of AIMAP Project
• 1. Council Set-up
• 2. Development and communication of the industry marketing levy system to fund the campaign
• 3. Development of Budget & Cash Flows
• 4. Hiring of an Executive Director
• 5. Advertising Agency Selection & Marketing Plan
• 6. Development of proposals for funding the generic promotion campaign in year 1

Background

Early in 2006, the Seafood Value Chain Roundtable commissioned a bench-marking study entitled “The Canadian Farmed Mussel Industry: Benchmark Analysis for the US Market.”  This study identified that fragmentation within the Canadian mussel industry was preventing it from exercising its full market power within the US. 

To further address this issue, a Farmed Mussel Working Group was established (FMWG). The FMWG was made up of key producers and processors in Atlantic Canada, as well as membership from associations & provincial and federal governments. After nearly 2 years of additional studies and meetings, the industry members of the FMWG have agreed to proceed with a well thought-out promotional campaign to increase demand. Beginning in the fall of 2008, the campaign will roll out over the next three years.

The main objective of the campaign is to increase consumer awareness and consumption of farmed mussels – and this will be done by conducting strategic generic promotion and public relations activities in the major US and Canadian markets.  By increasing awareness and consumption, it is expected that demand in the marketplace will be enhanced for Canadian farmed mussels, which in turn should increase the value of the products to the buyers and to the producers. It is anticipated this will translate into increases in farm gate value in the medium term.

The producers will come under the umbrella of a Mussel Council – which will be dedicated to undertaking and managing the promotional campaign, including assessing its effectiveness in the marketplace. The budget for the campaign is conservatively estimated at $1 million per year over three years.

Role of CAIA

CAIA has co-chaired the FMWG, provided assistance with organization of meetings, initiated studies as well as executed the search for an advertising agency. The key processor members of the FMWG (also members of CAIA) asked CAIA for assistance in establishing the Council.

Results of AIMAP Project

The following deliverables were identified in the proposal and have been successfully achieved by CAIA:

• Council set-up
• Communication Strategy to inform Canadian processors of the initiative
• Development of budget and cash flow sheets and proposals for funding
• Hiring of an Executive Director
• Guiding the initial work of the advertising agency

1. Council Set-up

The Mussel Industry Council (MIC) is a newly-formed consortium of licensed mussel processors in Eastern Canada, and aquaculture producer associations, representing over 90% of farmed mussel production. Formal announcement of the establishment of the MIC and the launch of the generic campaign will take place on April 14th in Charlottetown, PEI. It is anticipated that Minister Ashfield of ACOA will be in attendance for the event.

The primary objective of the MIC is to undertake a generic promotion campaign with the view of enhancing mussel consumption and awareness in the market place. It is expected that this will enhance the value of the industry throughout the value chain. The MIC is supported in part by government for start up of the campaign, but is industry led and funded.

The establishment of the MIC has been the culmination of extensive consultations between the federal government, five Canadian provinces, seafood industry partners, and the vast majority of mussel producers in eastern Canada. CAIA, thanks to support from the AIMAP program, was instrumental in providing leadership to guide this initiative in its formative stages.

Appendix
Decisional Meeting on Structure, Governance, Promotional Planning
Application for Incorporation

2. Development and communication of the industry marketing levy system to fund the campaign

A ‘teaser’ communication piece to announce the levy was distributed at the Boston Seafood Show.  Most customers (brokers, distributors, etc.) were positive on the concept of a promotion to increase consumption, and the idea of a partnership among members of the Mussel Industry Council and their customers.

In addition, the following strategy will be implemented to further ensure the message of the levy system is well communicated.

• media relations (issuing a media release, making follow up calls to encourage coverage and interviews)
• direct grower/processor to customer email communications
• direct grower/processor to customer mail communications/phone calls - a letter announcing the program and the levy will be developed for each MIC member to send to their customer base.  Follow up calls will take place

Appendix
Teaser Communication Piece

3. Development of Budget & Cash Flows

Appendix
Draft Budget

4. Hiring of an Executive Director

The position of ED was advertised in the following locations:

• aquaculture industry associations & government contacts
• members of the CAFI program (~40 different agriculture commodity organizations)
• Intrafish and Seafood.com
• Canadian Society of Association Executives

Twelve good quality applications were received and a small sub-committee short-listed this down to 6 for interviews. Interviews will be held Wednesday, April 15^th in Charlottetown, PEI.

Appendix
Recruitment Ad

5. Advertising Agency Selection & Marketing Plan

Bristol Group was selected to be the MIC agency of record, after an extensive advertising agency search was completed. Bristol will lead the development of a multi-year marketing and consumer awareness program that will focus on growing the market for mussels in North America. Elements of the $1-million-per-year marketing effort will include paid advertising, media coverage, partnerships and participation in industry events like the International Boston Seafood Show. A consumer-friendly website is also being developed.

Appendix
Bristol Marketing Plan and Workplan

6. Development of proposals for funding the generic promotion campaign in year 1

Funding proposals were developed and as a result, the MIC now has written funding commitments as follows:

The Atlantic Canada Opportunities Agency (ACOA) has contributed $800K, which will be combined with provincial government funding of $140K from Quebec, Newfoundland and Labrador, Nova Scotia, P.E.I. and New Brunswick, and CAIA CAFI support of $200K.  Processors will contribute over $3 million in the next 3 years.

Appendix
Record of Decision
ACOA Contract (CAFI confirmation and provincial letters of support available upon request).