A relatively new wholesale lobster distributor, York, Maine-based Maine Coast Shellfish, nearly doubled its sales from 2013 to 2014 and is projected to post USD 45 million (EUR 40.2 million) in sales this year. The spike can be attributed to a healthy U.S. economy, increased international demand for U.S. lobster and an effective marketing strategy, according to Tom Adams, owner of the four-year-old company.
SeafoodSource recently caught up with Adams to discuss the growing demand for Maine lobster and the stronger prices for the shellfish this season.
Blank: We understand the price for Maine lobster is higher this season. Why is that?
Adams: The price this year has been, on average, significantly higher than the last three to four years. It is between USD .50 (EUR .45) and USD 1 (EUR .89) per pound higher than last season. The catches haven’t been as strong this season, so prices are up. Around the industry, increased pricing slows some demand down and worldwide economy issues slow demand down. Rising prices are probably here to stay, unless we have some sort of worldwide economic disaster.
Blank: Speaking of global economic issues, how has that impacted your export sales?
Adams: We maintained our sales and are still experiencing some growth, by really going after sales in more conventional markets in U.S. and European countries. Our sales in Europe are a little bit ahead of last year’s sales. Our focus is still Asia – we believe the growth is in Asia – but for this year, it has been stalled. If we are not making sales in one place, we are going to be trying to make them in another.
Blank: To what do you attribute the growing international demand for Maine lobster?
Adams: As an industry, companies have invested pretty heavily in worldwide marketing. We will exhibit at four different seafood conventions this year in Boston, Belgium, Hong Kong and China. We are seeing lobsters becoming more and more popular in Asia, although mainland China has slowed down the most. Lobsters have become more mainstream – not just in the shell, but as an ingredient in lobster rolls, lobster mac ‘n cheese and other dishes.
Blank: How did your company grow so quickly?
Adams: Last year, we did around USD 40 million (EUR 35.7 million) in sales and this year we are projected to post USD 45 million (EUR 40.2 million) in sales. In 2013, it was USD 25 million (EUR 22.3 million) in sales. The price of lobster last year was a bit higher, which raised our revenue and we increased our customer share and volume of lobsters per pound. Our sales are also related to our marketing efforts, both domestic and overseas. We went aggressively into Asia, and they were looking for new suppliers. That was a natural fit for us as a new supplier. Still, we realized we had to remain diversified and not put all our eggs in one basket. We built a new facility designed with a natural seawater live lobster system that is filtered and chilled to very specific parameters which helps keep our lobster healthy for shipping to worldwide customers.
Blank: Tell us about your lobster processing facility.
Adams: Our building is around 20,000 square feet and our system can hold around 150,000 pounds of lobster. We use natural seawater that we refrigerate for parameters that keep lobsters alive for long-distance shipping. We keep the water as pristine as possible, and chilled to 38 to 40 degrees Fahrenheit.
