Safcol 2013

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Safcol 2013

Marketing Manager Dean de Villiers shares his insights and comments on the effect of Safcol’s 2013 Product of
the Year Award win.

The market

The canned seafood market is a relatively large one, valued at $600.2 million and growing at 3.3 per cent
(Aztec MAT 5/5/13). Tuna makes up the bulk of this market, contributing $435.5 million and growing at 4.9 per cent
MAT. Salmon is worth $105.3 million and growing at one per cent. Sardines account for $33 million and is flat.
The other segments making up the remaining $27 million are mackerel, herring, oysters, mussels, anchovies,
pilchards, prawns and clams.  The canned seafood market is very underdeveloped in some respects, such
as the variety of canned seafood people choose to eat, and very developed in other respects, as in the number of
flavours in tuna and salmon.
The retail landscape is extremely competitive, and this category has also not escaped commoditisation and devaluing as the two retail giants fight for market share. Retail selling prices of tuna have not increased in three years,yet the raw-material cost of tuna hasescalated by more than 200 per cent.
Suppliers have had to re-strategise in order to survive.
This is where innovation plays a key role. Competition is tough, as in anymarket, with very large brands trying to
impose their will on everyone else, and on the other side you have private label as a growing influence in the market. In
order to survive, smaller brands such as Safcol have to innovate and stay ahead of the trends.

Importance of the award

Winning the Product of the Year Award is very important to us. We are up against major multinationals and the
award gives us extra exposure to reach more consumers and lends our brand extra credibility. It also shows that
innovation does not always have to be led by the big brands.

Marketing campaign
We announced our Product of the Year Award win on TV, on social and digital media platforms, on our
packaging and in our print media adverts. We have seen 50 per cent growth in baseline sales and are one of
the fastest growing tuna brands in Woolworths, although this is off a small base. In a category where growth is hard to come by it is great to get double-digit growth.