AIMAP Project: Product Development, Commercialization and Marketing of the World’s First: Blanched – I.Q.F. Ready to Eat Whole Mussels

Final Report To:
Geoff Perry
Department of Fisheries and Oceans

For
AIMAP Project:
Product Development, Commercialization and Marketing of the World’s First:
Blanched – I.Q.F. Ready to Eat Whole Mussels

From:
David Walsh, Project Manager
Newfoundland Organic Seafoods INC.

March 31, 2009

This project was modified as a result of delays to funding approval and a change from the original location. The Pilot Plant was built in Fortune Harbour, Notre Dame Bay and not in Portugal Cove, Conception Bay. Due to extra infrastructure costs to complete the pilot plant and a lack of time to finish all the tasks of the project by the original completion date, only some of the product development work was completed. These adjustments and amendments were discussed and approved as the project was ongoing. A demonstration on the operation of the new pilot took place in Fortune Harbor. Visitors who attended the demonstration were:

Geoff Perry, DFO
Tom Stephens, Brand Strategy Consultants Inc.
Barry Jenkins and Barry Head, CFIA
Ian Burford, Department of Fisheries and Aquaculture, Govt. of NL
Andrew Wheeler, Department of Innovation, Trade and Rural Development, Govt. of NL
Clayton Forsey, Member of Newfoundland House of Assembly
Melanie Mercer,  Assistant to Clayton Forsey
Irvin Crane, C&W Industrial Fabrication

Cleaned and graded live mussels were put into specialized containers for cooking, chilling and freezing. After freezing, mussels were glazed in various beers for added flavor and to help prevent dehydration. The overall process works well but will need refinement and additions before commercial trial runs can be carried out. During the trial runs, samples were also prepared for Molson Brewery for shelf life studies. After a month in the freezer there is no indication of any bitterness or off flavor from any of the beer varieties used in the glazing process. Further trials will be carried out over the next couple of months to determine how well the product holds up over time in a conventional deep freeze.

Tom Stephens was hired as a consultant to the project and brought to Newfoundland to evaluate the production process. His role as a brand and market expert was to comment on the production and pilot facility and recommend the steps needed to bring the new products to market. (His visit report and recommendations are attached) These recommendations are currently in the planning stage and within a week a detailed plan and strategy will be completed and presented to AIMAP, NRC and investors for financial support. The focus of the plan will be to prepare 4 different types of ready prepared mussel meals for retail and food service markets. Two size grades will be introduced to the market with the objective of improving the overall marketability of mussels. Two grades should cater to customers’ preference for more uniform sizing and the option to buy larger or smaller mussels. Larger mussels would be offered at a premium price and smaller ones for a lesser price. This approach has been used in Europe for many years but is not common in North America. Furthermore, we intend to include less than 2” mussels as part of the mix in the smaller grade to cut down on waste, improve production efficiency and increase profits. If this approach proves to be successful, approximately 10% of discarded mussels could be utilized.

The basic elements of this go forward plan are:

• Develop and Fabricate Specialized Pilot Scale Equipment to complete the Value Added Process
• Develop Products, Brand Identity and Package for Trial Production Runs
• Test Production Runs of New Products to Review and Finalize Quality Management Plan with CFIA Officials
• Prepare Products for Test Market Launch
• Track Results of Test Market Launch
• Evaluate Results and Make Recommendations for Commercializing the Production Process and Increasing Market Efforts 

Comments from the visitors and the consultant were very positive after the demonstration was finished. Everybody agreed that this approach was unique and has the potential to increase the marketability and price level for mussels. The Brand and Market Consultant, Tom Stephens, also pointed out that the market is looking for this type of product and the timing is good for introducing it to market. He talked about current trends where more people are eating and entertaining at home due to the economic recession. The shareholders of NOS agree with Tom and believe with careful planning and a well developed strategy several products could be ready for test marketing by the fall of 2009. This becomes all the more urgent when predictions for conventional markets are expected to be down by as much as 40% this year.

In summary, this project has succeeded in helping Newfoundland Organic Seafoods Inc. to build a pilot plant for preparing cooked and frozen ready to eat mussels in the shell.  With some additions and adjustments to existing equipment the facility will be ready to prepare value added products for test marketing. The next phase of this development is carry out the final preparations in product, brand and package developments for a selected test market launch in various parts of Canada. A qualified team is assembled to do this work and detailed plans are underway for securing the necessary funds to get the products to market. If all goes according to plan, ready to eat mussel products glazed in beer or wine and other complementary ingredients, will be available to the market by the fall of this year.

Funds from the AIMAP program were much appreciated and the project would not have succeeded as well as it did without this financial support. In the near future, NOS will be submitting another proposal to your program for support in completing some of the above mentioned elements for preparing and test launching these new mussel products. Thank you again for you support and confidence is this project.