ready-to-sell: developing value-added seafood products
TRANSCRIPT
Ready-To-SellDeveloping Value-Added Seafood Products
Howdoyoumakemoremoneyoutofthesameproduct?Youknow—getabiggerbangforthebuck? Ascommodityproducers,localseafoodbusinesseslikeyoursmayseemtobeatadisadvantagewithforeigncompetitorsbecauseoftheirlowerlaborcosts.Buttwocurrentmarkettrendsareinyourfavor:
Thegrowingdemandforseafoodinthiscountry,particularlylocallyproducedproducts.Demandforconvenient,ready-to-eatmealsbecausepeopleareleadingverybusylives,oftenwithlittletimetocookathome.
Followingeithertrendcanhelpyouexpandyourmarketandaddvaluetoyourexistingproducts:
Whenyouidentifyyourproductwithalocale,youareappealingtoaconsumer’sattractionforaregion’scoastalheritageortheirpreferencetobuylocallyharvestedfoods.Whenyoucreateaproductthatislessperishableandrequireslittlein-homepreparation,youaresatisfyingaretailer’sneedforanextendedshelflifeandaconsumer’sneedforconvenience.
Byformulatingaseafoodappetizerorentreethatisnutritious,flavorfulandeasytoprepare,youaregivingthatrawseafoodenhancedornewqualities—therebyaddingvaluetoyourproduct. Butmanufacturinganewseafoodproductisnotassimpleaspreparingahomemeal.Processorsmustdiscernhowtoreceive,portion,weigh,blendandcookmass
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ingredientsusingdifferentkindsofprocessingequipment.Hazardanalysesmustbeconductedtodeterminewheremonitoringandcontrolmeasuresshouldbeappliedduringprocessingandstoragetoensurethatproductswillbesafeforconsumerstoeat.Creatingnewproductsisalsotimeintensive,takinguptoayearormoretodevelop. Sohowcanyou,theseafoodprocessor,createwholesomevalue-added seafood productsthatsatisfyspecificconsumerneeds?Therearetwomainanswerswe’llgooverinthisBlueprint:
Knowingwhototalkto,andUnderstandingtheproductdevelopmentprocess.
WHO TO TALK TO: A Food Technologist ThestateofNorthCarolinacanhelpyoudevelopvalue-addedfoodsthroughthreeresources:theDepartmentofFood,BioprocessingandNutritionSciences(FBNS);theN.C.DepartmentofAgricultureandConsumerServices(NCDA&CS);andtheN.C.DepartmentofEnvironmentandNaturalResources(NCDENR). It’seasiertotalktoasinglepersonwhocanhelpyounavigatealltheinformationandexpertisewithinFBNS,NCDA&CSandNCDENR.Youneedafoodtechnologist. Working with a food technologist who is skilled in product development is critical to your success. Thetechnologistcanhelpyouaccessresources
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BlueprintsNORTH CAROLINA SEA GRANT NCSTATEUNIvERSITY BOX8605 RALEIGH,NC27695-8605
UNC-SG-BP-10-10
PreparedbyBarry NashSeafoodTechnology&MarketingSpecialistNorthCarolinaSeaGrantNorthCarolinaStateUniversitySeafoodLaboratoryMoreheadCity,N.C.252/[email protected]
ImageCredit:ScottTaylor
withinFBNS,NCDA&CSandNCDENR;managetheproductdevelopmentprocess;andprovidemarketingguidance. North Carolina Sea Grantcandirectyoutoanexperiencedfoodtechnologist.SeaGrant,inpartnershipwithFBNS,NCDA&CSandNCDENR,hasassistedseafoodbusinessesincommercializingmanykindsofnewproducts.
WHO TO TALK TO: A Marketing Specialist Whenyoucommittodevelopinganewseafoodproduct,youmustfirstdecideifitwillbesoldinthewholesaletrade,theretailsectororboth.Ifyourproductrepresentsyourfirstexperienceinretail,youshouldconsiderbrandingtoprovideyourproductacommercialidentitythatwillappealtoyourtargetcustomer. Rememberthatoneofthehottrendstodayisthelocal food movement.Withlocalbranding,customersfeelasenseofconnectionwiththeirfavoritecoastalregion,orrelatetoasenseofhonorforthefishermen—inspiringthemtopaymoreforlocalproducts. Tobetterinformthepublicwhenlocalseafoodisseasonallyavailableandwhereitissold,SeaGrantledacommunityefforttolaunchCarteret Catchin2006tohighlighttheseafoodharvestedbyfishermeninthecentralcoastofthestate.ThisprograminfluencedcommunitypartnerstolaunchBrunswick Catch,Ocracoke FreshandOuter Banks Catchinlateryears,givingeachregionauniquebrandforcustomerstorecognize. Marketing specialistsatSeaGrantandNCDA&CScanhelpyouwiththebrandingprocessandwithcreatingsalesbrochurestomarketyourproduct.YoucanlearnmoreaboutbrandinganddevelopingsalesinformationintheNorthCarolinaSeaGrantpublication“BrandingSeafood:DevelopingaMarketingPlantoSellvalue-AddedSeafoodProducts”(UNC-SG-BP-06-01).
HOW TO DEVELOP IT: Lessons from the Pamlico Packing Company, Grantsboro, N.C. Toshowcasethestepsinvolvedinproductdevelopment,let’slookatacasestudyofthePamlicoPackingCompanyinGrantsboro,N.C.,whichappliedforandreceivedfundingthroughtheN.C.FisheryResourceGrant (FRG) Program(Project02-ST-04).FRG,whichisfundedbytheN.C.GeneralAssembly,hasprovidedresearchgrantstobusinessestodevelopinnovativeseafoodproducts. PamlicoPackingdevelopedalineofrefrigerated,ready-to-eat (RTE)seafoodspreadsandsaladsfortheretailmarket.Let’sseehowtheirrecipeconceptsweretransformedintofinishedproducts.
THE CHALLENGE Thoughpopularinstores,thekeepingqualityofperishable,RTEseafoodspreadsorsaladsmayonly
average7to10days,dependingonthetypeofingredientsandontheirbacterialload,aswellasonprocessing,productstorageanddistributionconditions. Thistighttimeframecanplaceprocessorslikeyouataneconomicdisadvantage.Thetimewindowinwhichaproductispurchasedbyconsumerscanbeveryshort,duetovariablesbeyondaprocessor’scontrol.Improper product rotation canresultinoldinventorygettingshovedfurtherbackintheshelf.Poor shelf visibilityatthestoremeanscustomerswon’tbuywhattheycan’teasilyfind,andmoreinventorygetsbackedup. Andwhobearsthecostsforthisunsoldinventory?Chancesareitwillbeyou. But,simplyextendingtheshelflifefrom10upto30dayscreatesamorestableproducttomarkettoretailers.Ifitkeepslonger,itcanstayontheshelflonger.Moreunitshavethepotentialtobepurchased. Now,let’sdevelopthisvalue-addedRTEproduct.
STEP 1: Refine Product Concepts In2004,oneofPamlicoPacking’sownerswasinterestedinretailingalineofseafoodsalads,dipsandspreadshiswifehaddevelopedforhercateringbusiness. Butwhichofherrecipescouldbeconvertedintocommerciallysuccessfulproducts?Thefirststepwastodeterminetherecipesthathadthestrongestsalespotential,andtolearnwhichitemswouldrequiremorerefinementtoenhancetheirconsumerappeal. SeaGrantcontactedtheFBNS’sSensoryServiceCenter,whichassembledaconsumer panel.Thepanelevaluated12prototypeshavingclams,crab,crawfish,shrimp,ortunaasprimaryingredients. Togaugeeachproduct’sappeal,about50consumerswererecruitedtorateeachitemonnumericscalesthatmeasuredpreferenceandpurchaseintent. Twoshrimpandtwotunasaladsreceivedthehighestacceptabilityscores,indicatingtheyhadthestrongestcommercialpotentialamongthe12prototypestested.Let’sfollowtheprogressofthesefourproducts.
STEP 2: Convert Recipes for Production TheingredientsineachrecipewereweighedtoconvertU.S.measurements,suchastablespoons,cups,ouncesandpounds,intometricunits(grams).Then,SeaGrantcalculatedthepercentagebyweightforeachingredientwithintherecipe. Byconvertingingredientamountsintopercentages,arecipewastransformedintoaformulation.Ingredientpricesandoperationalfixedcosts(suchasoverhead)werethenenteredintoacomputer spreadsheet,whichisavailablefromSeaGrant.Usingthespreadsheet,PamlicoPackingcouldnowadjustthepercentamountofany
ingredientinanyformulationandcalculatenewestimatesforaproduct’stotalmanufacturingcost. Thisinformationcanthenbebalancedagainstadesiredretailcostandsensorycharacteristics(texture,flavor,colorandappearance)tocreateanitemthatisbothappealingandprofitabletomanufacture.Thisiscalledleast-cost formulating.
STEP 3: Identify Industrial Suppliers of Functional Food Ingredients Tocontrolbacterialgrowthduringrefrigeratedstorageandextendshelflife,SeaGrantstaffrecommendedacommerciallyavailableblendofsodiumlactateandsodiumdiacetate.SeaGrantalsosuggestedtoPamlicoPackingotheringredientstomaintaintheoptimalflavor,textureandappearanceofeachproduct. SeaGrantprovidedthecontactinformationofsupplierswhosoldtheseingredients—savingPamlicoPackingconsiderableeffortinhavingtosourcevendorsontheirown.SeaGrantalsogaveinstructionsfortheuseofeachsuggestedingredient,whichincluded:
FlavorenhancerstomaintainproducttasteAgumpowdertocontrolmoisturelossfromtheshrimpandvegetableingredientsAnaturalantioxidanttoretardrancidityinthetunasaladsPotassiumsorbatetosuppressyeastandmoldgrowth.
STEP 4: Enhance Production Efficiencies Withtheformulationsrefined,it’snowtimetofine-tuneproductionmethods.Severaltestsmaybeneededtoverifywhetheryourproductionequipmentoperatesasexpected,andwhetheryourmanufacturingprocessproducesthehighestpossibleyieldsofsaleableproduct. PamlicoPackingdevelopedamanufacturingscheduletodeterminetheorderofingredientstobeaddedduringtheblendingstep,aswellasspecificmixingtimesbetweeningredientstoensureahomogenousproductcomposition.Filltestswereconductedtoensuretheirpackagingequipmentwasdeliveringthecorrectamountoffinishedproducttoeachretailcontainer. SeaGrantandtheFBNS Seafood LaboratoryspecialistsidentifiedequipmentsuppliersforPamlicoPackingtoobtainindustrialblenders,stainlesssteeltables,scalesandpackagingequipment.FBNScanreferyoutofoodindustryresourcesforprocessingequipmentandingredientsforyourmanufacturingneeds.
STEP 5: Conduct Shelf Life Evaluations Next,samplesofeachproductmustbesubjectedtobacterialandsensory testing.Thiswillvalidateour
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expectationsforshelflifeandconsumerappeal,orwhethermoreadjustmentstotheformulationsareneeded. Bacterialteststellushowmanydaysittakesforspoilagemicroorganismstogrowandmakeafoodunfittoeat.Andwhileafoodmightnotspoil,itcanloseitsdesiredtasteordevelopobjectionableflavorsovertime.So,asensorytestisalsoneeded. PamlicoPackingproducedtwoversionsofeachsalad:onewithpreservatives,andonewithout.ThesaladsamplesweresenttotheSeafoodLaboratoryinMoreheadCity.Atweeklyintervals,bothversionsofeachsaladweresubjectedtobacterialandsensoryevaluations. Inbacterialtests,FBNSdeterminedthedateatwhichborderline spoilageisreached.Thisismeasuredin“colonyformingunitspergram(CFU/g)”—basicallytheaverageconcentrationofbacterialcoloniesinonegramor0.035ouncesoffood.Thecommonlyacceptedlimitis500,000CFU/g.Here,thebacterialtestsdemonstratedthatthepreservativesystemwasadequatelycontrollingthegrowthofspoilageorganisms. Thencomesthesensorytest.Individualswererecruitedtoserveassensorypaneliststoratetheflavor,texture,colorandappearanceofeachproductonascaleof1(Terrible)to7(Excellent).Thescoresprovedthattheingredientsmentionedearlierweresuccessfullymaintainingthedesiredsensorycharacteristicsofeachproduct.
STEP 6: Develop Safety Specifications and Nutritional Information Labels You’veperfectedtheformulationsandproductionprocessforyournewRTEproducts.Nextstep:complywithfederalsafetyandnutritionlabelingrequirements. Atthebeginningoftheproject,SeaGrantcontactedNCDA&CSandNCDENRtoarrangeaconsultationwiththeownerstodesignafactoryprocessingareathatmetguidelinesforproducingsafefood.Oncethefacilityandequipmentwereinplace,theSeafoodLaboratoryconductedaprocessvalidationontheheat-processingequipmentforcookingtunasteaks,toensureitwassufficienttodestroydisease-causingbacteriaasrecommendedintheU.S.Food&DrugAdministration’s“Fish&FisheriesProductsHazards&Controls”guide. Theshrimpwerereceivedfullycookedanddidnotneedanyfurtherheatprocessing.However,PamlicoPackingrequestedaletterofguaranteefromtheshrimpproducerspromisingthatsafehandlingprocedureswereobservedattheirplants. SeaGrantalsohelpedPamlicoPackingconductahazardanalysisonitsproductline,developingsafetymonitoringplansforitemsthatweresubjecttothefederal Hazard Analysis and Critical Control Point (HACCP)regulation.Theseplanswerereviewedwith
productactslikeanonlinesalesbrochure,exceptyoucanaddcolorfulphotos,videos,customercommentsandotherpromotionalfeatureswithoutthecostofprinting.Websitesnotonlyattractwholesalebuyers,buttheyalsocangenerateword-of-mouthadvertisingfromconsumers. LearnmoreaboutcreatingawebsiteforyourbusinessintheNorthCarolinaSeaGrantpublication“UsingtheInternettoEnhanceDirectMarketSalesofSeafood”(UNC-SG-10-02).
THE RESULT PamlicoPacking’snewsaladsenteredlimitedtestmarketswithgoodresults.Thebuyersattwogrocerychainswerepleasedwiththequalityoftheproductsandthequickturnover,indicatingtheitemshadhighconsumerappeal. Developingavalue-addedseafoodproductrequiressufficienttimeandresourcestoenhanceyoursuccess.Youjustneedtoplanwellandconsultwithahelpfulfoodtechnologistandmarketingspecialistforagoodreturnonyourinvestment.
To order additional copies of this Blueprint and other Sea Grant publications, call 919/515-9101 or visit us online at: http://www.ncseagrant.org/home/resource-library
NCDA&CSandNCDENRinspectorsbeforethecompanybeganproductionanddistribution. FBNSandNCDA&CShelpedPamlicoPackingdevelopandreviewnutritionalprofilesforitsnewproducts.FBNSgeneratednutritionalinformationforeachproductusingacomputerprogram.TheinformationwasthenreviewedbyNCDA&CS.Onceapproved,SeaGrantsentthedatatoPamlicoPackingsoitcouldprintproductlabels.
STEP 7: Market Introduction Beforeinvitinganentrepreneurtopresentaproduct,retailandwholesalebuyersprefertoreviewsales brochurestodetermineifaproductisagoodfitwiththeirexistinglineofvalue-addeditemsormeetscriticalconsumerneeds. Oncethesaladswerereadytobemarketed,SeaGrantassistedPamlicoPackingindesigningsalesbrochuresthatgavebriefdescriptionsofeachproduct—brandname,typeofpackaging,shipping-casedimensionsandpricing—thatallbuyersrequireforaninitialevaluation. YoushouldalsoconsiderusingtheInternettodrawattentiontoyournewproduct.Awebsiteprofilingyour
READY-TO-SELL: Steps Toward a Successful Seafood Product
ResearchPHASES
MAJORCOSTS
Create Refine Comply Promote
TimeSensory Tests
TimeIngredientsEquipment out of productionNew Equipment
TimeShelf Life Evaluations
Safety ConsultationNutritional Evaluation
Graphic/Web DesignersMarketing Consultation
SHELFIDEA
ConsumerEvaluations
In-CompanyEvaluations
IdentifyCritical
Ingredients
RunProduction
Trials
CREATEFORMULATION
& REFINEPROCESS
DEVELOP& REFINERECIPE
BacterialShelf Life
Tests
SensoryShelf Life
Tests
REFINEFORMULATION
HazardAnalysis& HACCP
Plans
FINALIZEPRODUCT
MARKETINTRODUCTION
InternetAdvertising
SalesBrochure
DevelopCommercial
BrandCommercialBuyer
Requests
TradeMagazines
NutritionLabels &
RegulatoryReview
Ben Young Landis & Barry Nash/North Carolina Sea Grant/June 2010