Peterhead, Scotland-based Thistle Seafoods, a fifth-generation family-owned business, has weathered plenty of crises in its 70-plus year history.
Brexit and the COVID-19 pandemic have been bumps in the road, and current labor shortages and global supply chain disruptions are also causing headaches, according to Thistle Seafoods Vice President North America Lorraine Bruce-Helmkay.
“In the U.K., [we] have the same labor shortages as in U.S.,” she said. “And supply chain problems started in the third quarter of 2020 and have continued to get worse. For our imports from Asia and our exports to Canada, the U.S., Australia – everywhere, it has been an issue. We’re being upfront and honest with our customers, and trying to keep an open line of communication with them, and fortunately we have very understanding buyers.”
The company, a value-added processor of seafood products such as fish cakes, battered fish, and hot seafood appetizers, ships globally, primarily for large-volume clients, though 90 percent of its business is within the U.K. It works with a variety of species, including Scottish salmon, cod, haddock, shrimp, scallops, tuna, and pangasius, and sells to Aldi in the U.S. and Loblaws in Canada.
The COVID pandemic resulted in higher demand in the U.K., but not at the levels seen in the U.S., according to Main.
“More seafood was initially consumed. Everybody was working from home and schools were closed. Everybody was buying fish sticks, but we’ve seen those sales drop down again,” he said. “Premium products didn’t drop off way we expected they might over last summer. People weren’t going on holiday so they were indulging a bit while staying at home, and that kept sales of premium products up.”
Thistle Seafoods Commercial Director Stephen Main said the additional paperwork that has come as a result of Brexit has forced the company to make a full-time hire to handle the additional volume.
“What Brexit has meant for us a lot more paperwork for our exports to the [European Union]. It has been an administrative nightmare and added expense. We have someone whose entire job is preparing paperwork – health certificates and the like – just to be able to export out of the U.K.”
Thistle Seafoods will survive the current crises, Main said, but smaller companies in the U.K. are struggling with all the additional costs and complications.
“Fortunately, it hasn’t affected our international business. We’ve worked with Loblaws for two decades and we’re proud to continue that relationship,” he said. “But things were tough before and now there’s additional hurdles to jump over. It’s a hit hard for smaller companies to absorb.”
Photo courtesy of Cliff White/SeafoodSource
