MSC eyes double market share by 2017

News 14:40 29/05/2012 ĐNH
(IntraFish) The Marine Stewardship Council (MSC) aims to increase efforts in its core regions to double the market share of MSC certified products within the next five years, the organization said in a newly published five-year strategy plan.

This could mean tweaking its current business model while streamlining its chain of custody process, Nicolas Guichoux, who heads the MSC’s Europe activities, told IntraFish.

A key focus will be on making the MSC’s Chain of Custody (CoC) process better adapted to the foodservice segment, including at wet fish counters in retailers.

“A big part of our commitment, the big work in progress at the moment, is to make our chain of custody program more adapted to restaurants and fishmongers. Most of the companies at the moment that have gone through chain of custody are in the middle of the supply chain, like wholesalers or processors,” Guichoux said.

Unlike foodservice players, retailers typically only need CoC certification for a limited range of products, since most of the products they buy are pre-packed and sold as such to consumers, Guichoux said.

“That’s what has probably slowed down our progress in the foodservice segment.  Despite these differences, we have witnessed a strong uptake over the past 12 months with companies like McDonald's and Sodexo but also with schools, universities and even Michelin starred restaurants - demonstrating the increasing interest  from this important sector.”

At the moment, companies who want to use the MSC logo as a consumer-facing label on a product pay a fixed fee of $250 (€192.9) to $2,000 (€1,543) a year, in addition to 0.5 percent of their net wholesale sales value to the MSC.

To encourage more companies to use the logo, the MSC is consulting at the moment with some of its commercial partners to tweak its existing logo charging structure linking it to sales discount or marketing incentives, Guichoux said.

The organization is also looking at a “much more radical changereduce its dependence on logo licensing income, he said.

However, he said: “We haven’t started the process yet.”

Expanding to China, Japan

Nearly 15,000 products worldwide are currently MSC certified, representing sales of more than $3 billion (€2.3 billion).

To increase this number, the organization will also expand its reach to markets such as China, Japan, and South Africa, the MSC said.

“The primary market objective over the next five years is to double the overall market share for MSC-certified seafood,” the organization said in an outline of its five-year plan.

“That will equate to market share of around 30-40 percent throughout advanced markets in northern Europe, a quadrupling of current market share in the US and Canada, a growing MSC market presence in Australia/New Zealand, Japan and southern Europe, and introducing the MSC concept in China and select markets in Asia.”

Already, the organization has recruited its first Asia director as parts of plans to expand in China.

In southern Europe and Japan, it said, the aim is to have “at least a dozen major corporate commitments to the MSC” by 2017.

Registered as a non-profit charity in the UK, the MSC has two main sources of income: the logo licensing scheme on the one hand, and grants and donations on the other. The former generated £6.3 million (€7.9 million/$10.2 million) in the 12 months ending at the end of March 2011, a 54 percent increase from the previous year. Income from the latter was up by 15percent the same year, to £6.45 million (€8 million/$10.4 million).

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