Five years ago, Steve Chen and Dennis Morgan had a decision to make. Their Pasadena, Calif.-based seafood processing company, Yihe Corp., had been importing and packing Alaska salmon, pollock, cod and a handful of other species for private-label sales and the United States’ largest seafood suppliers for about a decade. On the supply side of the industry, Yihe was known and valued.
“There’s not a major [salmon] importer in the United States that we haven’t packed for,” said Morgan, executive VP for Yihe’s U.S. operations. “As far as salmon coming into the country, nobody does more.”
But a household name they were not. Venturing out on their own into a competitive marketplace, selling branded products direct to retail buyers, was certainly a risk. As it turns out, it was a risk worth taking, because Yihe’s new business model was quickly embraced. The company asked major volume buyers like Walmart if they wanted to buy Marine Stewardship Council-certified salmon and other products direct from the manufacturer, cutting out a link or two in their supply chains.
“Almost everybody said yes,” said Morgan, touting the early success of its Ocean Eclipse Premium Seafood brand and products with great growth potential, like salmon burgers. “Making that decision put us on the map.”
Yihe Corp. has since transformed from a relatively unknown, behind-the-scenes player with USD 50 million (EUR 38 million) in annual sales to a potential juggernaut with approximately USD 500 million (EUR 382 million) in sales in 2012. The company is enjoying 23 to 24 percent growth annually, a stunning growth rate regardless of industry. “Even our banks are scratching their heads,” said Morgan.
Click here to read the full story that ran in the May issue of SeaFood Business >
