Online retail giant Amazon cut the price of the organic salmon sold by Whole Foods by one-third following its acquisition of the grocery chain, delegates heard at the World Seafood Congress 2017 (WSC) in Reykjavik, Iceland.
Amazon’s acquisition of Whole Foods was finalized on Monday 28 August. Up to Friday 25 August, Whole Foods was selling farmed Atlantic salmon for USD 14.99 (EUR 12.53) per pound, but three days later the price was down to USD 9.99 (EUR 8.35), highlighted Jón Þrándur Stefánsson from seafood consultancy Markó Partners.
Similarly, the price of Whole Foods’ tilapia was reduced from USD 11.99 (EUR 10.02) to USD 7.99 (EUR 6.68) per pound.
Stefánsson said the total global seafood trade was now valued at USD 180 billion (EUR 150.5 billion) and was being driven by “massive companies,” but also that the dynamic nature of the sector means it is constantly changing.
“Companies are getting bigger just to deal with economies of scale,” he said, adding that they also have to “navigate and deal with increased levels of change and complexity.”
The diversification of Norwegian fish farming company Leroy Seafood into the whitefish sector through the purchase of Havfisk and Norway Seafoods in 2016 is further evidence of the shifting marketplace, said Stefánsson.
Many firms are also moving further down the value chain and getting closer to the end consumer.
“In short, it’s all about money and delivering value.”
More disruptions and challenges are coming to the market, he said.
